Year-to-Date Fredericksburg MLS data shows large decreases from peak in 2007

Posted on April 8, 2009
Filed Under Fredericksburg Texas Real Estate Market, Fredericksburg Texas Real Estate News |

By Greg Oehler

Residential Sales Activity

The number of homes sold is off 29%, the total amount sold is off 38% or $2.7 million from 2007, and Days on Market* increased 48% to 191 days.  The lone bright spot is in the sales price per square foot which increased some 10% in 2009 over 2008.  For more details, please see the following three charts:

Residential Sales in Fbg
22 Sales

1/1/2009 to  3/31/2009

Low

High

Average

Median

Total

List Price

$119,000

$379,500

$213,771

$184,900

$4,702,954

Selling Price

$115,000

$369,800

$201,900

$179,500

$4,441,800

SP/LP Ratio(%)

83.43%

102.42%

94.87%

96.48%

–

Price/SqFt ($)

$47.53

$248.61

$134.87

$133.50

–

DOM*

23

591

191

122.5

–

 

Residential Sales in Fbg
26 Sales

1/1/2008 to  3/31/2008

Low

High

Average

Median

Total

List Price

$132,000

$435,000

$258,543

$256,750

$6,722,110

Selling Price

$110,000

$392,200

$242,037

$226,280

$6,292,960

SP/LP Ratio(%)

76.60%

103.77%

93.83%

95.31%

–

Price/SqFt ($)

$71.71

$159.82

$120.77

$124.00

–

DOM*

30

483

178

165

–

 

Residential Sales in Fbg
31 Sales

1/1/2007 to  3/31/2007

Low

High

Average

Median

Total

List Price

$112,000

$599,000

$239,246

$199,500

$7,416,640

Selling Price

$109,900

$589,000

$231,475

$197,250

$7,175,740

SP/LP Ratio(%)

79.65%

100.00%

96.38%

97.47%

–

Price/SqFt ($)

$84.27

$192.38

$132.89

$137.66

–

DOM*

26

364

129

93

–

Residential Lot Sales Activity

Take a look at the multiple listing data for residential lots in Fredericksburg for the first three months of 2009, 2008, and 2007:

Residential Lot Sales in Fbg
1 Sale

1/1/2009 to  3/31/2009

Low

High

Average

Median

Total

List Price

$45,500

$45,500

$45,500

$45,500

$45,500

Selling Price

$45,500

$45,500

$45,500

$45,500

$45,500

SP/LP Ratio(%)

100.00%

100.00%

100.00%

100.00%

–

DOM*

160

160

160

160

–

 

Residential Lot Sales in Fbg
14 Sales

1/1/2008 to  3/31/2008

Low

High

Average

Median

Total

List Price

$48,200

$99,500

$63,139

$57,500

$883,950

Selling Price

$48,300

$95,000

$62,325

$57,500

$872,550

SP/LP Ratio(%)

89.23%

100.21%

98.92%

100.00%

–

DOM*

58

463

274

276.5

–

 

Residential Lot Sales in Fbg
7 Sales

1/1/2007 to  3/31/2007

Low

High

Average

Median

Total

List Price

$56,000

$245,000

$96,286

$69,500

$674,000

Selling Price

$56,000

$215,000

$92,000

$69,500

$644,000

SP/LP Ratio(%)

87.76%

100.00%

98.25%

100.00%

–

DOM*

49

323

200

233

–

 

Lot sales varied more so than residential improved properties, going from seven sales in 2007, 14 sales in 2008, and down to one sale in 2009.  However, the Average Lot Prices fell about 25-30% each year.

Absorption Rates

RESIDENTIAL PROPERTY (in FBG city limits)

Active Residential Listings (as of 4/2/2009)
183 listings
(In Fbg /Gillespie County)
Low High Average Median Total
List Price $93,000 $1,750,000 $351,641 $285,000 $64,350,339
DOM* 2 1162 168 94 –

In the last six months ending 3/31/2009, there were 40 residential sales (6.67/month) in Fredericksburg.  At the current rate of sales, Fredericksburg has over 27 months of inventory. If this rate of sales continues, most analysts would consider this a Buyer’s market.  That said, many people in Fredericksburg do not have the same sense of urgency to sell that is common in larger, more urban markets.  Much of our inventory is purchased with cash or equity from another home, and very few of our Sellers move due to job transfers where they have limited time to relocate.  They tend to be more patient here than in the larger cities.

RESIDENTIAL LOTS (in FBG city limits)

For the YTD ending 3/31/2009, there has been only one lot sale in Fredericksburg.  Going back six months to 9/30/2009, there were three lot sales.  As you can see from the next chart below, if we use the sales rate over last six months as an indicator (0.5 sales per month), Fredericksburg has a lot supply of more than 23 years which is definitely indicative of a Buyer’s market.

Active Residential Lot Listings (as of 4/2/2009)
140 listings

Low

High

Average

Median

Total

List Price

$11,500

$450,000

$69,724

$56,700

$9,761,400

DOM*

2

1058

636

697

–

The good news is that there is plenty of inventory and interest rates are low!  Buyers have a lot of options to choose from. Market conditions can change very quickly, so if you are interested, I recommend that you start early as activity generally picks up pace in the summer.

If you are considering selling your home right now in this climate, or are interested in taking advantage of this great buying opportunity, please give us a call at (830) 997-6123. We have the experience to help you in today’s real estate climate and will strive to make your buying or selling process work as well for you as possible.

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