Will Interest Rates Fall Before the End of the Year?
Derek Peterson Derek Peterson

Will Interest Rates Fall Before the End of the Year?

One of the questions I get asked more than almost any other is, "Should I wait for interest rates to come down?" The honest answer is... nobody knows for sure. The Federal Reserve has made it clear that inflation remains its biggest concern, and as long as inflation stays elevated, interest rates are likely to remain higher than many buyers would like. Financial markets continue to adjust their expectations almost daily based on new inflation reports, employment data, energy prices, and global events.

Over the past month, inflation showed one of its largest declines in quite some time, which was certainly encouraging. Much of that improvement has been attributed to lower energy prices after tensions in the Middle East temporarily eased. Since then, however, oil prices have become more volatile again as conflict with Iran has resurfaced, and new tariffs announced this week could also put upward pressure on prices if they increase the cost of imported goods. Neither of those events automatically means inflation will rise, but they are exactly the kinds of factors economists will be watching over the coming months.

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Buyer Fatigue: Why More Homes Doesn't Always Make Buying Easier
Derek Peterson Derek Peterson

Buyer Fatigue: Why More Homes Doesn't Always Make Buying Easier

One of the biggest misconceptions in real estate is that more inventory automatically makes buying a home easier. It seems logical. If there are more homes on the market, buyers should have more choices and an easier time finding the right one. But after doing this for more than a decade, I can tell you that's often not how it plays out.

As inventory grows beyond four months, buyers begin experiencing something called buyer fatigue. I usually tell my clients to use the 80/20 rule. If a home checks about 80% of the boxes, it's probably worth serious consideration. The challenge is that once inventory starts piling up, most of the homes sitting on the market are there for a reason. One house has the giant backyard and updated kitchen but it's two stories when you wanted one. Another is beautifully remodeled but backs to a busy road. Another has the perfect layout but no bathtub in the primary bathroom and no practical way to add one. Individually, none of those compromises seem like a deal breaker. After you've looked at 30 or 40 homes, though, every compromise starts to feel bigger than it really is.

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AISD Delays Major Boundary Changes: What It Means for South Austin
Derek Peterson Derek Peterson

AISD Delays Major Boundary Changes: What It Means for South Austin

If you've been following the AISD boundary conversations over the past year, there was some meaningful news this week. Austin ISD announced that the large-scale districtwide boundary changes originally planned for the 2027-28 school year have been pushed back to 2028-29. Instead of redrawing attendance boundaries across the entire district all at once, AISD is moving to a two-phase approach. The first phase will focus only on urgent boundary changes caused by recent school closures and campuses that are growing so quickly they would otherwise need portable classrooms. The larger conversation about balancing enrollment across the district has officially been delayed.

From my perspective, this isn't all that surprising.

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Bowie High School Budget Update: What South Austin Families Should Know
Derek Peterson Derek Peterson

Bowie High School Budget Update: What South Austin Families Should Know

The largest impact will be staffing reductions. Bowie will see its teaching staff decrease from 136 positions to 123 positions, although most of those reductions came through retirements and resignations rather than layoffs. According to Principal Brad Lancaster, only two staff members were directly affected and both were offered positions elsewhere within Austin ISD. Bowie will also lose one counselor position and see one assistant principal position reduced by 50%, which means existing staff will be carrying a heavier workload moving forward.
Students will likely notice some operational changes as well. Some teachers will see reduced planning periods, certain courses may be consolidated or eliminated, and AISD is moving secondary schools to a transportation hub model. That means students needing bus service may have to travel to a designated elementary school within the Bowie feeder pattern to catch a bus. Late activity buses are also being eliminated. Despite these changes, Bowie leadership emphasized that all major programs including athletics, fine arts, and career and technical education pathways remain in place for now.

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AISD Boundary Changes: Why South Austin Homeowners Should Pay Attention
Derek Peterson Derek Peterson

AISD Boundary Changes: Why South Austin Homeowners Should Pay Attention

If you've followed my blogs for any length of time, you've probably heard me say that schools drive the South Austin real estate market. That's why Austin ISD's ongoing boundary review process is worth paying attention to, whether you currently own a home or are considering buying one. Every few years, AISD evaluates attendance boundaries to balance enrollment across campuses as populations shift throughout the city. While no final decisions have been made, some of the proposed changes could have a meaningful impact on several Southwest Austin neighborhoods.

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Austin ISD Budget Cuts: What Could This Mean for South Austin Real Estate?
Derek Peterson Derek Peterson

Austin ISD Budget Cuts: What Could This Mean for South Austin Real Estate?

Austin ISD recently announced a plan to address a staggering $181 million budget deficit, and while most of the headlines focus on schools and staffing, there could be some ripple effects for the South Austin housing market as well. Austin ISD cited several factors contributing to the shortfall, including declining property values, lower enrollment, rising operating costs, and years of state funding that failed to keep pace with inflation. To close the gap, the district is proposing hundreds of position reductions, larger class sizes at some campuses, shared support staff, transportation changes, and the sale of district-owned properties.

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Does the Austin Housing Market Cool Off for Summer?
Derek Peterson Derek Peterson

Does the Austin Housing Market Cool Off for Summer?

Austin summers are brutally hot… but does the housing market cool off too?

Historically, yes. The Austin real estate market is usually at its busiest during the spring, especially in neighborhoods where schools drive home values. Most families want to be settled before summer starts so they can prepare for the next school year. That means March, April, and May tend to be the frenzy months in South and Southwest Austin. Buyers are aggressively trying to get under contract while sellers time their listings to line up with the end of the school year and summer moves.

By the beginning of June, most of those school-driven buyers are already done.

That leaves the summer buyer pool looking a little different. In my experience, summer buyers are usually people whose leases are ending, families relocating to Austin for jobs, investors looking for opportunities on homes that have been sitting for a while, or homeowners preparing for bigger life transitions like downsizing or moving out of town after their kids leave the house. The urgency is still there for some buyers, but the overall pool tends to get noticeably smaller compared to spring.

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Austin Real Estate Taxes: What Actually Moves the Needle
Derek Peterson Derek Peterson

Austin Real Estate Taxes: What Actually Moves the Needle

Austin funds its infrastructure, schools, and a big chunk of what keeps this city running through property taxes. For most of Austin, the combined tax rate hovers around 2.1 percent, give or take depending on where you live. But here’s the part most people misunderstand. The tax rate itself is not always the most important number.

Yes, tax rates can change. They shift based on elections, bonds, school funding, and what the city and county need to finance. But the biggest driver of your tax bill is not the rate. It is the assessed value of your home.

The county determines what they believe your property is worth based on their own valuation criteria. Texas is technically a non-disclosure state, which means the state does not automatically have access to actual sales prices. Historically, this worked in homeowners’ favor. For years, many homes were worth far more on the open market than what the county had them assessed at. It was not uncommon to see a property’s true market value be $100,000 higher than its taxable value.

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How to Find a Good Real Estate Agent in Austin
Derek Peterson Derek Peterson

How to Find a Good Real Estate Agent in Austin

Like most industries that involve actual humans, real estate agents vary wildly in competence. Knowledge of contracts, neighborhoods, pricing, and market trends all matter a lot. But if I’m being honest, I don’t think those are the most important things. Helpful? Absolutely. Critical? Yes. Most important? Not quite.

The most important thing is an agent’s ability to connect, advocate, and empathize.

I don’t want to downplay experience. My first few years in real estate felt like drinking from a fire hose while running downhill. It’s hard to truly advocate for someone when you’re still figuring out how to do your own job. Over time, though, I realized the part of the work I loved most wasn’t the contracts or the stats. It was the people. Understanding what they actually want and helping them get there without losing their sanity along the way.

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The Busiest Time to Buy a Home in South Austin
Derek Peterson Derek Peterson

The Busiest Time to Buy a Home in South Austin

We’re officially rolling into the busy season in real estate, and in South Austin, that timing is not random. It’s almost entirely driven by schools.

When school paths play a big role in home values, they also dictate when people buy and sell. Families don’t wake up one morning in July and decide to casually move. They plan. And that planning starts right about now.

Buyers who are trying to get their kids into a specific school start looking early because they know everyone else is thinking the same thing. Waiting until late spring usually means more competition and fewer options. Sellers know this too, which is why we see a wave of listings hit the market in early spring.

The timing actually works out surprisingly well.

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Why Staging Matters More Than You Think
Derek Peterson Derek Peterson

Why Staging Matters More Than You Think

Staging is one of the most misunderstood parts of selling a home. A lot of people hear “staging” and immediately think it’s about making a house look fancy or trying to trick buyers into liking something they shouldn’t. That’s not really what it’s about at all.

Good staging helps buyers mentally solve a house.

When a home feels old or dated, buyers tend to fixate on what’s wrong instead of what works. Staging shifts that focus. It helps a buyer see how a home can live today, even if the finishes aren’t brand new. This is especially powerful for homes that are in great locations, have great yards, or sit in strong communities. You can’t change location. You can’t add mature trees overnight. You can’t move a house into a better school path. Those are the unsolvable boxes. And when a house checks those boxes, staging helps buyers get past the solvable stuff.

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The Inevitable One or Two Snow Days of South Austin
Derek Peterson Derek Peterson

The Inevitable One or Two Snow Days of South Austin

It happened again. Like clockwork.

Austin, Texas gets a day or two of sub-zero temperatures and suddenly the city feels like it hit the pause button. Roads empty. Schools close. Group texts light up with photos of frozen lawns like we’ve just discovered a new planet. The first few years I lived here, I thought it was a joke.

I grew up in Utah. Literally on the side of a mountain. I learned to drive in snow. It’s not that hard. Slow down. Pay attention. Don’t panic when your car hits ice. Steer into it. Breathe. So when Austin shut down for what looked like a light dusting, I was confused. Mildly judgmental. Definitely smug. What I didn’t realize is t

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The Golden Handcuffs of Austin Real Estate
Derek Peterson Derek Peterson

The Golden Handcuffs of Austin Real Estate

If you bought or refinanced between 2020 and 2022, there’s a good chance you’re wearing what we lovingly call the golden handcuffs. That sub-3% interest rate feels incredible on paper, but it also makes the idea of moving feel borderline irresponsible. Those historically low rates are what sent home prices soaring. Cheap money allowed buyers to afford more, which drove values up. Appraisals followed, and with them came higher property taxes and insurance premiums. Suddenly, people weren’t just paying for a house. They were paying for the value of a 2022 house. The only reason the numbers still work is because the rate is so low.

That’s the trap. Even when a home no longer fits your life, your family, or your sanity, the math says “stay put.”

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78739: The Ferrari of South Austin
Derek Peterson Derek Peterson

78739: The Ferrari of South Austin

If South Austin were a parking lot, 78739 would be the Ferrari sitting in the shade.

Not because it’s loud.
Not because it’s flashy.
But because everyone knows exactly what it is.

78739 hosts some of the most sought-after homes in all of South Austin. It’s where people land when they’re done “trying things out” and ready to settle into something that feels permanent. If 78749 is the Lexus, 78739 is the Ferrari. Same reliability. More presence.

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78749: My Favorite Zip Code in South Austin
Derek Peterson Derek Peterson

78749: My Favorite Zip Code in South Austin

I live in 78749. I’ve lived here since I moved to Austin. And I’m not leaving.

If 78748 is a Kia, 78749 is a Lexus. Not flashy. Not loud. Just incredibly reliable. The kind of place you can drive for the rest of your life and never feel like you need to “upgrade.”

It’s comfortable. It’s practical. It’s quietly elite.

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Why 78748 Might Be the Most Underrated Zip Code in South Austin
Derek Peterson Derek Peterson

Why 78748 Might Be the Most Underrated Zip Code in South Austin

If zip codes had personalities, 78748 would be the quietly confident one in the room. Not flashy. Not loud. Just sitting there being wildly practical while everyone else fights over bragging rights.

78748 is a big zip code. Like, “you could live in it for years and still be discovering new pockets” big.

It stretches north to Davis Lane (which turns into Dittmar), south past Slaughter all the way to 1626 and even includes Estancia down by the I-35 corridor. It runs east to I-35 and west toward Brodie and Mopac. Translation: it covers a lot of South Austin real estate personality.

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