Statistics from the latest Kerrville Area Housing Report compiled by the Kerrville Board of Realtors, along with comments from local realtors, show that the local real estate market is beginning to correct downwards.
Median home prices fell from $401,000 in June to $375,000 in July, according to Realtors Commission data. The number of active home listings increased from 113 in June to 137 in July, while closed sales fell slightly from 57 in June to 55 in July.
Homes offered for sale by local estate agents are now on the market for an average of 35 days. That’s three days less than a year ago. Currently, none of the homes listed by realtors are priced below $100,000, and only 7.6% are listed for less than $200,000.
The majority of current listings (28.3%) are in the $300,000 to $400,000 category, although that number is down slightly from June. More than 45% of the homes on the market today are priced above $400,000.
First Realty’s Chad Parker said:
All local realtors are always looking for new listings, and businesses everywhere are trying to get property owners to list them, Parker said. Many companies contact property owners by mail, email, or phone.
“As the market cools down, I believe stocks will rise soon. As part of the market’s leveling, prices will fall,” Parker added.
Pat Parker, also a First Realty mother, agreed the biggest problem was the low inventory of homes between $250,000 and $400,000.
“Items in that price range sell out quickly,” says Pat. “Right now cash payments and mortgage payments are 50/50 for him. Young buyers in their mid-30s to his mid-50s are still raising money.”
Pat said prospective buyers under the age of 35 cannot find homes in Kerrville.
“There are no USDA homes available and everything else is too expensive for young families,” she added.
Potential future foreclosures may allow buyers to take advantage of cheaper properties.
When asked, Pat said he was unaware of any homes that had been removed from the market to convert to short-term rentals, a controversial issue in the community in recent months.
“I doubt short-term rentals are having an impact on the overall market. STR is being bought as an income property on purpose.
Realty Executives real estate agent Rob Irvin agreed that markets are cooling in the Kerrville area and around the state.
“We are definitely in transition. Sixty days ago, homes on the market were getting multiple offers above list price,” says Irvin. People were quickly jumping on something or refinancing. “
Irvin said when interest rates rise, fewer people enter the market because those who bought or refinanced at lower rates last year don’t want to move to higher rates.
“This will also lock down inventories for a while.
Realtors have already cut some prices, Mr. Irvin said, mostly on homes that were “horribly overpriced to begin with.”
Speaking of affordable housing, Irvin said the term ‘affordable housing’ is problematic and that people making $15 an hour will continue to have trouble buying a home.
“Most real estate under $200,000 started its life on wheels,” says Irvin.
Irvin said the inventory problem is not just in Kerrville or Texas, but nationwide.
According to Irvin, the National Association of Realtors recently released a report showing that there are about 1.2 million homes on the market nationwide. A year ago he was 2 million.
“Housing shortages across the country are associated with declining housing starts and rising interest rates,” he said, adding that “increasing costs of materials, land purchases and infrastructure further complicate matters. I will,” he said.
Irvin also noted that a home that was purchased for $75,000 20 years ago is now worth over $200,000. This means homeowners have a lot of equity but can’t afford to sell and move elsewhere because they can’t find affordable properties. in that price range.
“Given people’s concerns about the economy and inflation, I don’t think the market will improve anytime soon,” Ervin added.
Fore Premier Properties’ Laura Fore agrees that demand for mortgages has fallen as higher interest rates forced some buyers out of the market.
“As markets continue to adjust, prices stabilize and inventories maintain their current upward trajectory, aspiring buyers will have less competition and more opportunities to secure their homes.
Nearly half of the properties on the market today are listed locally at $400,000 or more, so sellers need to price properties at rates that will attract qualified buyers.
“In terms of sales-to-list price ratio, homes sell for 99.8% of the asking price on average,” says Fore.
Interest rates are at an all-time low, and while they are rising, they are normalizing. As a result, Fore said the impact on the purchasing power of all buyers, especially first-time homebuyers, is real.
“Despite the most significant economic turmoil in our lifetimes, the number of luxury home buyers has increased significantly. Demand continues to grow for luxury homes and ranches with , privacy and space.
She believes the local housing market is at a tipping point after the past two years of record breaking.
“Markets are easing, returning to the years leading up to the pandemic,” Fore said.
Competition for listings among local real estate agents continues to be a strong factor in the marketing of Hill Country properties.
According to Chad Parker, a member of the Kerrville Realty Commission, the Kerrville area has more than 600 licensed real estate agents who are members of multiple Listing Services (MLS). This number is not unusual as most agents are members of multiple MLS listing services in Hill Country real estate areas.