8th Sep, 2012

Fredericksburg Real Estate and Slowly Improving Texas Housing Market

Steadily improving, the Fredericksburg TX real estate market reflects the statewide pace.  Prices have stabilized and major economic indices whisper sustained improvement into the future.  Fredericksburg Texas homes and ranches are located in the heart of Texas Hill Country real estate about 75 miles west of Austin and north of San Antonio.

In 2011, Austin home prices increased one percent year over year to aim median price of $191,200.  San Antonio home prices also increased one percent to $151,000.  However, median home prices in Kerrville decreased 7 percent to $154,400.  Kerrville TX real estate is 25 miles southwest of homes in Fredericksburg Texas.  Kerrville is the closest area monitored by the Real Estate Center at Texas A&M University.  The median home price in Fredericksburg is $176,522.

Texas A&M University Real Estate Center’s research economist Dr. James P. Gaines makes the case for slow improvement in his article entitled “Home Grown.”  Cautiously, Gaines says, “For the rest of 2012 and into 2013, sales and new construction should expand and prices should stabilize.”  Gaines backs up his comment with a series of charts and graphs, although he is the first to cite significant uncertainties ahead.

Texas leads the nation in new home permits.  In fact, nationally, Houston and Dallas metropolitan areas are leading the pack in the construction of single-family homes.  Nonetheless, the majority of Texas urban markets are considered overbuilt.  In a State of Texas during 2011, 97,450 building permits were pulled.  Approximately 3/4 of them were for single-family residences.  Only 33 building permits were pulled in Gillespie County, the home of Fredericksburg.

Housing prices and interest rates are only two factors affecting the Texas home sales.  Household income is a key player as is the percentage of income taxes and sales taxes.  After the housing bubble, the Texas economy has successfully reengineered itself.  New businesses, relocated companies and company headquarters, and entrepreneurial startups – along with a favorable business environment – have helped Texans hold their own.

In spite of tight lending requirements, more homes have sold in Texas (215,000) in 2012 than in any year since 2008.  Sales are up 3.4 percent and the average sales price is up two percent to a record high of $200,000.Total dollar sales for Fredericksburg TX real estate and Gillespie County are up over the last two years.  During 2012 Quarter II, total dollars sold and units sold increased over 12 percent from 2011 levels.

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.

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