Real Estate Rumblings

Crown jewel of Austin's trendy South Congress strip now for sale

Kendra Scott will remain the tenant as part of the sale.

Photo courtesy of CBRE

A crown jewel of the South Congress strip is now for sale. On March 26, CBRE, a commercial real estate and investment firm, announced the building at 1701 S. Congress Ave., which currently houses the flagship Kendra Scott store, is on the market.

The 3,110-square-foot building was originally built in 1920 and sits on a 0.16-acre lot on the corner of Milton Street. Most recently, it was the home of Hill Country Weavers before undergoing a gut renovation in 2018.

With Austin firms like Sixthriver and architectural superstar Michael Hsu involved in the project, the humble craft store was transformed into the chic, glittery home of Kendra Scott, which moved operations from its previous flagship at 1400 S. Congress Ave. in November 2018.

"Kendra Scott ... will be staying in the location," Brad Bailey, first VP at CBRE, confirmed to CultureMap. "The current owner, a private investor who owns the asset, is selling the asset as part of his investment strategy."

The sale is likely to incite quite a bit of interest considering its prime location near attractions such as the South Congress Hotel, and restaurants like Vespaio and June's All Day.

“With demand so high for investment property, we expect interest from investors around the U.S. and, perhaps, even internationally, as few assets like this make it to market,” Bailey said in a release. "South Congress is experiencing an unprecedented level of growth and attractiveness to the next generation of retail. We do not see this slowing down anytime soon.”

So how much will it cost those potential investors? The sellers are staying mum, with a rep saying only that "CBRE cannot confirm any price at this time."

local real estate report

Homebuyers can afford to be picky as Austin housing inventory rises

Photo by Avinash Kumar on Unsplash

Housing economist Clare Losey said the most significant factor affecting home sales in Austin is high mortgage rates.

The latest real estate report from Unlock MLS and the Austin Board of Realtors (ABoR) has revealed housing inventory is still on a steady rise in the Austin-Round Rock-San Marcos MSA, creating more choices for potential homebuyers as they navigate a high interest rate market.

Residential home sales dipped by a mere 1.5 percent year-over-year from October 2023, amounting to 2,248 closed sales in the Austin-Round Rock-San Marcos MSA. Median prices have also dropped to $430,000, or 3.2 percent less than this time last year. More than 3,300 new home listings were added on the market — a 7.4 percent increase from 2023 — bringing the total number of active home listings to 11,599.

According to Unlock MLS and ABoR housing economist Clare Losey, Ph.D., October's mortgage rates stood at 6.4 percent and are showing no signs of a significant drop in the near future. Even heading into 2025, Losey says potential homebuyers who are biding their time in the hopes of seeing rates plummet "may be in for a long wait."

"In the meantime, sellers must recognize that bringing buyers to the table requires a more aggressive pricing approach," Losey said. "Even in a more balanced market, buyers with limited purchasing power are struggling to meet current price expectations."

As for the overall health of the Central Texas housing market, 2024 Unlock MLS and ABoR president Kent Redding labeled recent news reports that called Austin "ground zero" for a downturn as an "extreme over-exaggeration."

"Austin led the state and nation in record-breaking home price growth and sales activity during the pandemic," Redding said. "For three years, near-zero housing inventory, numerous offers above list price and a rapid-paced market raised home prices and left little negotiating power for buyers. During this record-setting growth, ABoR and Unlock MLS consistently emphasized the unsustainability of the rapid growth, and now, our market is working to balance those extremes."

Central Texas housing trends in October 2024

In Travis County, 979 homes were sold last month — a slight 2.5 percent increase from last year. Median prices remained flat year-over-year at $510,000. Active home listings continued growing to 5,702 homes, which is 9.4 percent more year-over-year.

In Williamson County, 807 homes were sold in October, with median prices steadily dropping to $420,000. There were 1,028 new home listings on the market, showing a 4.5 percent increase from October 2023, bringing the total number of active home listings to 3,369.

Residential home sales dropped by nearly eight percent in Hays County in October, totaling 315 sales. Median prices also fell 5.5 percent year-over-year to $359,000. Active listings rose 6.6 percent year-over-year to 1,740 homes with the addition of 534 new listings on the market.

Meanwhile, 114 homes were sold in Bastrop County last month, which is 4.4 percent more than this time last year. Median prices dropped by a single percentage point year-over-year to $355,000. There were 654 active listings on the market in October, and 152 new home listings, representing a 1.3 percent slip in new inventory when compared to last year.

Only 33 homes were sold in Caldwell County in October to reflect a near 14 percent decline year-over-year from October 2023. Median prices fell to $262,990, which was a 13.5 percent decrease from last year. There were 136 active homes on the market last month, and 40 new homes added on the market.

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