WITH ONLY 77 ACTIVE RESIDENTIAL LISITNGS IN FREDERICKSBURG TODAY, how much inventory is out there to satisfy the market? The answer is THERE IS NOT A LOT OF INVENTORY OUT THERE (ESPECIALLY SO FOR INVENTORY BELOW $400,000), AND AS A RESULT UPWARD PRESSURE ON PRICES IS LIKELY TO CONTINUE.
From the macroscopic viewpoint, we have 77 Active Residential Listings on the market in Fredericksburg and with a sales rate of 24 listings per month, Fredericksburg has only about 3.2 months of available inventory. Typically, most experts would label this a “Seller’s Market” in Fredericksburg. It takes 6 months of inventory to be classified as a “Balanced Market.” The scariest thing about the market is that the AVERAGE PRICE of an Active Listing is about $619,000 or $259/SF!
INVENTORY VARIES BY PRICE RANGE!
There is virtually no inventory priced less than $200,000. I know there was 1 Residential Listing on the market for approximately $192,000 when I checked today, but we have had days if not a week or two where there was nothing available for less than $200,000 in Fredericksburg. Out of 77 total Residential Listings available today, only 32 are priced less than $400,000. In the same price category, we are selling 16 listings per month. Therefore, we have 2 months of inventory (32/16) of homes in Fredericksburg priced less than $400,000. We definitely have a Seller’s Market for homes priced below $400,000.
For inventory priced at $400,000 and up, there is more inventory……well, maybe a little more inventory, with 45 Residential Listings (58%) of the market. In the year ended 2/27/2017, we SOLD 100 listings in the $400,000+ category, so the rate of sales is about 8.3 sales per month. With 45 listings available selling at 8.3/month, we have 5.42 months of inventory. While this is closer to a “BALANCED INVENTORY” level, it is still below the 6 month level ideally considered “balanced.” As a result, it is likely that we will continue to have upward pressure on Residential Pricing in Fredericksburg in 2017.
The Fredericksburg housing market continues to be a great place to invest. Older homes, especially those within walking distance to Main Street, will command premium prices. Sometimes more inventory pops up in the spring and this would help both buyers and sellers. Builders are gaining a little more confidence and we have about 20 lots Under Contract to be purchased. There are several apartments under construction and this may relieve some of the pressure at least temporarily once they are completed later this year.
Texas Hills Realty is working with several Sellers feverishly sprucing up their homes now in anticipation of hitting the market in March/April. If you would like something to buy and do not see it yet, check with us before you give up. We may have something just for you just around the corner.
IF YOU ARE BUYING OR SELLING IN THE TEXAS HILL COUNTRY, you need a team you can count on! We do our best to see that YOU are successful. Our team members are agents Joe Kustelski, Melynn Williams, Andrew Harvey and Phil Frey. Both Phil and Joe received their GRI designations in their first year of real estate! They are Graduates of the Realtor’s Institute which is one of the best courses available for real estate training and marketing. And Melynn Williams was nominated for Rookie of the Year last year by her peers. This award is primarily for production in sales, good-natured cooperation with other agents, and participating in board-sponsored events. Andrew learns by doing, and he has hands on experience by buying and selling properties personally. If you need to buy or sell, give us a call. You get a professional team with an in-house broker who is a native of Fredericksburg and voted Realtor of the Year for 2016! You get experts in the current real estate market and practices in Fredericksburg, Texas. And, you get an easy to find presence on Main Street in Fredericksburg by the red and black 1931 Ford pickup.
COME SEE US if there is something we can do for you with real estate. Listings are in short supply and we are gearing up for a very busy spring! Now is a great time to polish up that property and get it out on the market.
We get our market data information from the Central Hill Country Board of Realtor’s Multiple Listing Service . Information in this article was obtained as of February 27, 2017, and is subject to changes without notice. The information is deemed to be reasonably accurate, but specifically NOT GUARANTEED! While this information may be helpful, please rely on your own due diligence PRIOR to making any business decision or let us focus specifically on your property to see how it may apply.