27th Jun, 2012

Stable Texas Residential Real Estate/Fredericksburg TX Homes Sales

Texas residential real estate sales appear to have “reached a trough.” The market for Texas Hill Country homes in Fredericksburg, Kerrville, and Gillespie County real estate reflects the state of the economy and the surrounding metropolitan areas such as Austin, Houston, and San Antonio as city folk purchased vacation homes in scenic rural areas.

Based on MLS data compiled by the Real Estate Center at Texas A&M University, the annual sales volume for Texas homes is sitting pretty, on par with sales between 2002 and 2003. Mark Dotzour explains, “Every economic cycle reaches a peak, which is followed by a period of decline. Eventually, the decline subsides, and the market levels at a trough.”

The data shows that sales of single-family homes in Texas peaked in 2006 at 292,805 properties. The trough began in 2010 when the annual sales volume in Texas reached 203,637. So far in 2012, Texas residential real estate sales show substantial monthly increases year-over-year. Increasing anywhere from 8.1 percent to 20.8 percent during these monthly segments, there is increasing confidence that the market is stabilizing.

Dotzour tells readers to ignore the real estate bubble when assessing today’s market. He says that he considered sales at the end of the 90s as being white-hot. Comparing today’s Texas home sales with that era, our improving Texas real estate markets are still ahead of the game.

Unlike many areas of the country, prices of houses in Texas have essentially stayed the same throughout the last several years. Extrapolating from Texas House Price Index produced by the Federal Housing Finance Agency, we learn quite a bit about home appreciation in Texas.

Taking from an example posted on June posted, again by Mark Dotzour, “If you bought a house in Texas for $100,000 in January 1991, the value of your house increased to $191,500 by the fall of 2007… By the end of March 2012…your house is still worth more than $191,000.” It all averages out to a pretty good rate of return, especially considering you had a place to live for the past 20 years.

New home starts are another way to measure the market. During the first four months of 2012, single-family home housing permits increased year over year 17.9 percent. Home permit volumes in metro areas around Texas Hill Country showed substantial increase. Houston (24.9%), Austin (8.5%), San Antonio (23.2%). North of Hill Country, the Odessa-Midland area posted a 55.9% increase in home-permit volume.

Home sales generally follow employment numbers. To its credit, Texas has been steadily adding new private sector jobs.

Come visit and invest in Texas Hill Country. For more information, please call Dale E. Cook, MBA and owner of SAGE – Premium Texas Real Estate in Fredericksburg at (830) 992-0056.

Kerrville TX homes for sale

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