The Kerrville Real Estate Market Faring Much Like Wall Street
March 4th, 2009 categories: Assessing the Local Market
On Monday, the Dow Jones industrial average fell to 6,763 — the lowest close for the Dow since April, 1997. The 300-point drop Monday leaves the index more than 52 percent below its record high of 14,164.53 set in October 2007.
The Texas Hill Country real estate market, while still doing better than the national market, is experiencing a similar decline as that of Wall Street. Kerrville, Texas Real Estate Sales in January & February 2009 totaled just $7.67 million, equivalent to just 46.7% of last year’s sales.
It is commonly understood that in an unstable environment, “Big Ticket Items” get hit the worste. People delay purchases … especially big ones until they feel more certain about the future. Real Estate certainly is one of the “Big Ticket Items” that is suffering in the current economic environment.
What will it take to create a more certain future? I imagine just time. In our opinion, the real estate market, like the stock market, was due a “correction.” People get caught up in the frenzy and make unwise decisions … not based on fundamentals. The good side to a correction is people start making sensible decisions about how they spend their money. And, the ones that don’t OVERREACT can seize opportunities. When the market is down, deals can be found more easily!
The good news is that, historically, real estate has been one of the best places to invest money in uncertain times. Real estate is a “real” asset … meaning it is a tangible, real asset … It can’t be taken away … It’s not just on paper!
We believe that it is time for many who have lost money in the stock market to consider investing in real estate.
The Texas Hill Country is still one of the best places in the country to invest. Tourism and retail sales are still strong.
Our encouragement to you is: Live fully and yet wisely! And keep the long term perspective!
We’d love to help you find your Hill Country dream home! Give us a call at 830-995-2511.
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REAL ESTATE SALES – ARE WE PAYING TOO CLOSE ATTENTION TO THE WAY SALES “BOB UP AND DOWN”? FREDERICKSBURG TEXAS JANUARY & FEBRUARY 2009 RESULTS
March 4th, 2009 categories: Assessing the Local Market
President Barack Obama said on Tuesday that paying too close attention to how Wall Street “bobs up and down” could lead to bad long-term policy. “What I’m looking at is not the day-to-day gyrations of the stock market, but the long-term ability of the United States … to regain its footing.”
The same may be true when looking at real estate sales in Fredericksburg, Texas which were WAY down in January and February … just 33% of the previous year’s figures*. Sounds horrible? Should you run from this market?
It would seem to be a paradox … but Fredericksburg actually is thriving this year!
Pass through the town any day of the week, especially on weekends and you’ll see a city that is booming. Tourists galore!
Doesn’t quite fit with the real estate numbers? Well, go figure!
What we are hearing from the retailers in Fredericksburg is that sales are up! More people! And they’re still spending!
What’s happening is that, instead of taking trips to Europe, the Carribean, and other exotic places, people in Texas are taking small trips within the state … and Fredericksburg, still characterized by its German heritage, is a huge draw to the local tourists. Close to Austin, within driving distance of Dallas and Houston, and “smack dab in the middle of the Texas Hill Country,” people are taking weekend and extended visits to the Fredericksburg area.
Our feeling is that many of those tourists will take note of this quaint Texas town and, once optimism returns, will resume real estate purchases there.
Given that outlook, right now would be a prime opportunity to get into this market. Buyers are getting better deals than they have been in a long time! Give us a call if this interests you. We’d love to help you find your Hill Country dream home or ranch.
Our encouragement to you: Live life fully and yet wisely! And keep a long term perspective!
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*Also, keep in mind that a large portion of Fredericksburg real estate sales are large acreages and ranches. Just a few ranch sales can make up a large portion of the overall sales figures and a decrease in the number of ranch sales can make the picture look worse than it actually is.
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HILL COUNTRY ECONOMY & THE REAL ESTATE MARKET: How do Kerr & Kendall County Markets Compare?
May 9th, 2008 categories: 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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