13th Dec, 2010

Fredericksburg TX Real Estate Market Update – December 2010

For those who are fortunate to be buyers of Fredericksburg TX and Hill Country real estate, the market statistics provide important information in your decision-making process.  It is extremely important to work with an experienced Realtor and bargain from a position of strength through knowledge of the market.   Before you make a purchase of a home, ranch, or investment property in the Texas Hill Country, consider some of the following facts:

Inventory:

In the 11 months year-to-date ending Nov. 30, 2010 there have been 125 sales of Fredericksburg, TX real estate or just over 11 sales per month.  The current inventory of listings is 148, indicating an approximate 13-month supply of residential home listings in Fredericksburg.

In the rural Hill Country real estate area of Gillespie County, there has been 54 sales this year or about 5 per month.  With 132 active residential listings in the county, there is a 27-month supply of county listings on the market.

It is a generally accepted principle that a 6-month inventory supply represents a healthy real estate market with a balance of buyers and sellers.  With a 13-month supply of Fredericksburg TX real estate and a 27-month supply of Gillespie County Hill Country real estate, it is easy to conclude that it is a “buyer’s market”.

Another measure of the Hill Country real estate market is the ratio of new listings to sales.  This is currently running at a rate of 2.65 to 1.  This represents some improvement from earlier in the year when the ratio was 4 to 1.

Price Range of Sold Property:

The total homes sold of Fredericksburg TX real estate through Nov. 30, 2010 was 125 homes at $25,843,849 for an average of $206,751.  The average number of days on market was 216.  Of the total homes sold, over 90% sold for less than $300,000.  However, the average listed price of homes in the city limits of Fredericksburg is $336,340.

In Gillespie County, Hill Country real estate sales of homes amounted to 54 homes at $21,378,530.  The average sales price was $395,000.  The average number of days on the market was 232.  Over 80% of these Hill Country homes sold for less than $475,000.

Comparison to Last Year (2009 vs. 2010):

The total number of residential sales of Fredericksburg TX real estate in 2010 was 125 vs. 130 last year representing a decline of 4%.  In volume of sales in dollars the decline was 7.6%

In Gillespie County, Hill Country real estate sale of homes was 54 vs. 43 last year representing an increase of 11%.  The average sales price of $395,000 was a 24% increase over 2009.  The disturbing fact is that the average list price for Hill Country homes in Gillespie County is $753,820.  Clearly, the higher priced homes are simply not selling.

Farm and Ranch Inventory:

There were 20 sales of Hill Country ranch acreages so far in 2010 for a total of $10,643,000.  The present inventory of listings is 192 at a total asking price of $147,562,000.  At the current rate of sales it appears that the market has listed a 9-year supply of ranch land.  The same is true of smaller rural tracts of land.  There have been 23 sales to date for $5,023,954, yet the listed inventory is 186 tracts providing a surplus inventory of approximately 8 years.

Conclusion:

The facts present a compelling case that the overwhelming supply of sellers provides for a robust opportunity for buyers in the market.  For expert guidance in your personal search for the ultimate piece of Fredericksburg TX or Hill Country real estate, please call Dale E. Cook, MBA and owner of SAGE- Premium Texas Real Estate at (830) 992-0056 or go to the website at www.texashomesandinvestmentproperty.com.

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