24th Oct, 2012

Home Prices for Fredericksburg/Texas Real Estate Survive Foreclosures

Fredericksburg and Texas home prices have weathered the foreclosure storm over the past several years. Texas Hill Country real estate registers a very low foreclosure rate for homes, with many of the foreclosures being vacant land.

Gillespie County real estate market stats reveal 0.2 percent foreclosures in September 2012. According to foreclosure listing firm Realty Trac, only one in every 3,069 homes in Gillespie County received a foreclosure filing in September, three in Fredericksburg and one in Harper. Across all of the counties in Texas, foreclosure rates fell anywhere from 0 to 13.7 percent. Realty Trac reports that July 2012 Texas foreclosure filings dropped significantly by 5.7 percent.

Foreclosure rates in Austin are slowing steadily also. Consumer analytics firm Core Logic reports that 1.05 percent of Austin homes were in some stage of foreclosure during July 2012, down from 1.08 percent during July 2011. The consumer analytics firm also reported that mortgage delinquencies are declining in Austin. Dallas and Houston, two of the largest markets, experienced more foreclosures than did the Austin and San Antonio metropolitan areas.

Nationwide during July, 3.25 percent of mortgages were in foreclosure and an additional 6.7 percent were delinquent. In fact, by September 2012, foreclosure activity in the United States reached a five-year low.

James P. Gaines, a research economist with the Real Estate Center at Texas A&M University explains, “Texas did not escape the negative effects of foreclosures resulting from the boom-bust housing market the past several years.” Contrasting with the huge number of foreclosures in the late 1980s, experts like Gaines attribute the steady and minimal foreclosure activity in Texas to the stable economy which sustained employment and also added new employers.

All metro areas but one in Texas experienced a decrease in foreclosure filings between 2010 and 2011. A dozen MSAs recorded more than negative 50-percent change. Now that the government program to hold off foreclosures until settlement of the loan modification lawsuit is over, there may be an increase in foreclosures coming to the market. If the lenders release the properties slowly, the Texas home market should have no problem absorbing the extra inventory.

Although home prices throughout the nation declined almost 25 percent during the bust, the annual median home price in Texas remained flat and, by 2011, the median home price was the highest on record for 2011. Another record for median home prices was set during summer 2012.

To find out about Texas Hill Country homes and ranches for sale, please call Dale E. Cook, MBA and owner of SAGE – Premium Texas Real Estate in Fredericksburg at (830) 992-0056.

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