16th Feb, 2011

Will Next Foreclosure Wave Hit Texas Hill Country Real Estate?

The Texas Hill Country real estate market sees its fair share of foreclosure proceedings with a moderate amount of foreclosed real estate in Fredericksburg.  Matter of fact, this could be a great time for qualified vacation-home buyers to pick up bank-owned vacation homes in Fredericksburg or Texas investment properties for a song and dance, or for lots of work.

The current rate of foreclosure has had minimal effect on values of Fredericksburg TX homes.  Buyers infrequently request foreclosed properties in Fredericksburg, but are grateful when they find good ones.

In Texas and Gillespie County real estate, foreclosed properties are sold “as-is” on the courthouse steps on the first Tuesday of every month.  At any given time, less than five percent of properties (5 to 25 Gillespie County properties) are real estate owned (REO).  As there are no public records with exact figures, the total amount of our shadow inventory is difficult to determine. We have had a recent moratorium on foreclosures, too.

One thing for distressed homeowners to consider is that buyers love Texas Hill Country for vacation homes.  Short sales could help homeowners get out from under big payments and back on their feet while helping buyers move into vacation homes or investment properties.  Sample existing homes on the market today include a Fredericksburg executive home for $455,000, another for $365,000 and a farm/ranch for $389,000, another for $245,000.

Other moderately priced homes include a 4/3 for $126,000, a 4/2 for $95,900, a 3/3 for $205,000, a 3/2 for 175,000 or 94,900, and a 3/1 for $84,900.  Buyers and investors may discover vacation homes for under $600 per month situated near Enchanted Rock State Park, the Pedernales and Guadalupe rivers, Lady Bird Golf Course, hunting properties, and scenic bike rides through Texas Wine Country.

Nationwide, real estate analysts brace for a growing bumper crop of foreclosures, especially on jumbo loans.  Economist Mark Zandi of Moody’s Analysts says REO inventory is growing.  Fifty million homeowners are underwater on their homes, owing more than the homes are worth.  Of these, four million homeowners are 50-percent underwater—and that is serious.

For expert guidance in your personal search for the ultimate piece of the Hill Country, please call Dale E. Cook, MBA and owner of SAGE- Premium Texas Real Estate at (830) 992-0056.

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