4th Apr, 2014

Texas Home Appreciation Notes by TAMU Real Estate Center

Prices for Texas homes have been rising.  Some people are concerned that prices in the Lone Star State are rising too quickly, a phenomena which could cause another housing bubble.  This week the Chief Economist and Director of Research for the Real Estate Center at Texas A&M University reported on Texas home prices over the past 38 years.  Mark Dotzour reports, “Home price increases are normal.”

Fredericksburg Texas HomeUsing housing data gathered since 1975 and extracted from the Federal Housing Finance Agency (FHFA) records, Dotzour cited average annual appreciation rates of 4 percent.  The rate was variable over time, ranging from a low of –9.6 percent in 1987 to a high of 17.8 percent in 1981.  While prices declined during six years, home prices in Texas went up in 32 different years.  Prices declined only during the oil-market collapse of the 1980s and during the Great Recession of 2009 in 2010.

Keep in mind the fact that home prices vary widely within the State of Texas.  Prices are increasing more dramatically in Dallas-Fort Worth, Houston, Austin, San Antonio, and the Midland Odessa areas.  Rural areas of Texas are experiencing more modest price stabilization.  In Texas Hill Country, a number of luxury home prices have increased for our area of Fredericksburg TX homes.  At the same time, a number of Listing Prices for older and smaller homes have gone down.  It depends on the market.

TAMU Texas HomesBack to the analysis from the TAMU Real Estate Center.  In his article entitled, “Texas House Price Increases,” Mark Dotzour revealed the largest appreciation rates in the Texas home market from 1976 to 1979 and in 1981.  Back then, prices were going up between 12 percent and 17.8 percent annually.  There was never a bursting bubble, although prices finally fell somewhat when the oil bust occurred.

The numbers have not been released yet for 2013.  Dotzler expects the 2013 appreciation rate to be about 5.5 percent, which is nowhere near those highs at the end of the 1970s.  So he’s thumbs up for the current market activity.

Invest in Fredericksburg TX Real Estate

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

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