HILL COUNTRY ECONOMY & THE REAL ESTATE MARKET: How do Kerr & Kendall County Markets Compare?
May 9th, 2008 categories: About the Local Market, Assessing the Local Market
Those interested in relocating to the Hill Country might wonder which county has the more active market (especially in the current economy): Kendall or Kerr?
At first glance, it would appear that Kerr County is more active than Kendall County (1,201 Active Listings vs. 942 in Kendall County).
(Kerr County figures based only on Kerrville MLS data. Kendall County figures based only on San Antonio MLS data.)
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Kendall County, however, is a larger market overall in terms of real estate sales. Kendall County Real Estate Sales for the first four months of 2008 were $51.7 million. Kerr County’s were $41.1 million.
As you can see, both markets experienced decreases in property sales during the first four months of this year as compared to last. Kerr County experienced a $11.18 million decrease in overall real estate sales while Kendall County saw a $15.83 million decrease in sales.
With overall sales decreasing in both markets, one would expect days on market (e.g., the average time it takes a property to sell) to likewise increase as properties are taking longer to sell. True in Kendall County ; but not in Kerr. Why?
In Kerr County, the average for Farm & Ranch properties skewed the total days on market average. It decreased by 135 days … likely due to the long overdue sale of several farm & ranch properties. Days on Market in the Residential (only) Category increased by 23 days in Kerr County which represents a change similar to Kendall County’s.
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So, what does this all mean?
Normally, the first quarter of the year is the slowest in terms of real estate sales. However, this year seems to be much slower than last. The mortgage market crisis certainly has had its toll. Definitely it is more difficult to get a loan these days. I had a mortgage loan processor tell me about two years ago that “if a person had a pulse, he could get them a loan.” No more … and rightfully so. There certainly were a lot of mortgages made that should not have been. As the adage goes, “what goes around comes around.” It is a healthy correction.
Add to that, the effect of rising gas prices. I think many people are in shock over how much it costs to fill their gas tank these days. Certainly, we all are having to reevaluate the way we spend our monthly allowance. Gas represents a much larger percentage of our monthly outlay than it used to.
So … as in all change. There is an adjustment period. But remember, Real Estate historically is one of the best places to invest during inflationary periods.
The good thing about the Hill Country is that it is a relocation market (e.g., older, more financially secure people still want to retire here) … so we will fare better than the nation.
Our residential market is still doing pretty well. Actually, it was the Farm & Ranch market that experienced the “lion’s share” of the decrease in sales in the Hill Country … another needed correction as prices of acreage and farm and ranch properties were escalating much faster than was realistic.
Keep in mind, though, in every market there are always opportunities. The good news is that the number who are willing and/or able to jump on these opportunities has decreased.
If you are one that is still willing (and able) to move on the opportunities that we are seeing in the Hill Country market or is interested in relocating to the Hill Country, give us a call, we would love to serve you.
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