5th May, 2011

Steady Eddy Texas Home Values

The Texas Hill Country home market generally reflects the overall housing edge in Texas:  steady eddy.  Texas home prices held up well compared to those in the USA.  Texas real estate in metro areas actually increased in value over the past five years.

For several reasons, peak prices during summer sales seasons remained steady from 2007 through 2010.  First off, Texas real estate did not experience quite the same housing bubble as the rest of the nation. Secondly, our population continues to grow and third, Texas businesses are adding new jobs.

Around Fredericksburg TX real estate, however, several newer developments of former Texas ranchlands are populating only very slowly.  Our city homes in Fredericksburg have maintained value in the lower price strata while some of the multi-million dollar estates have fallen slightly.  Buyers of single-family home investment properties and larger estates are finding some excellent values.

Even if Texas communities are growing and the state adds new businesses and jobs, real estate values in the Texas housing market may stay relatively stable for another year or two.  Lenders are still releasing high levels of foreclosures into the market.  Along with short sales and other distressed sale, these properties drive down home prices.According to information gathered during the 2009 American community Survey, Texas ranks 6th in the nation for the ratio of median home value to median household income.  James P. Gaines, research economist with the Real Estate Center at Texas A&M, points out, “The market adjustment in pricing attitude means current house prices correlate more closely with existing, competitive house rents rather than hoped for, uncertain profits.”

Stringent lending practices, nonetheless, keep buyers away.  Although prices are stable, many potential buyers must rent because they are unable to obtain loans with the larger down payments necessary today.  Median home prices in Fredericksburg Texas hovered around $200,000 in 2007 and $190,000 in 2010.  Median household incomes increased over $5,000 during that time.

According to the FHA Finance Agency, home values rose more than any other state in Texas and North Carolina.  Since 1991, home prices in many metro areas doubled.

Vacation properties in Gillespie County and Fredericksburg also feature a low cost of living, one reason why Fredericksburg is a contender for Best Places to Retire.

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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