Fair Oaks Ranch Texas February Housing Report
When analyzing the current real estate market data, it’s imperative to view the correlation between the various metrics rather than focusing on one metric in isolation. For example, while this month’s metrics point to a seller’s market, sellers aren’t necessarily at a real advantage.
The Months Supply of Inventory, is currently at 3.83. This metric indicates the number of months it would take to sell all the current listings on the market if no new listings were added. A lower number typically signifies a seller's market, where demand exceeds supply. However, per the introduction, complicating this figure is a lack of inventory. High interest rates are not only pricing buyers out of the market, but they are also preventing many potential sellers from placing their homes on the market; these potential sellers do not want to take on a new mortgage with a high interest rate. Further, good news for sellers but bad news for buyers, the lack of inventory is inflating home prices. Note the following graph which shows that Fair Oaks Ranch home price increases exceed that of Bexar County, Texas and all of the US.
The 12-Month Change in Months of Inventory is also important to note, as it has decreased by -54.02%. This significant decrease indicates a tightening of the market, with properties selling at a faster pace compared to the previous year.
The Median Days Homes are On the Market is 65, which further supports the notion of a fast-moving market. Sellers can expect their properties to sell relatively quickly, while buyers may need to act swiftly when making purchasing decisions. As mentioned in earlier reports, if your home is on the market considerably longer than the median days on market, it possibly suggests that either your home is not priced correctly, your home is not being marketed correctly, or some combination of both. Remember, that while there is a lack of inventory, there is also a commensurate lack of buyers. You are in competition with new home builders that are offering low interest rates and 10-year warranties.
The single best marketing strategy in this environment is to market your home to people that have a lot of equity in their current home and may therefore be able to purchase yours outright, in cash. Californians are the ideal candidates for this. Clients that list their homes with me benefit from my almost 900 connections with California real estate agents. Their homes are presented directly to them. They know who is selling their homes and moving here. They know the buyers priced out of the California market.
The List to Sold Price Percentage is 96.1%, suggesting that properties are generally selling close to their listing price. This can be beneficial for sellers looking to maximize their returns on investment. While this is a very healthy number, it indicates that if selling, you can expect a negotiation. If buying, it indicates that seller’s are beginning to get anxious to sell.
Lastly, the Median Sold Price of $787,500 reflects the average price at which properties are selling in the market. This information can be useful for both buyers and sellers to understand current pricing trends.
While we are on the cusp of what is typically the onset of homebuying season, high interest rates have put a damper on the market and, with the exception of new construction, we likely can not expect to see a really hot housing market. Further, from all of my reading and research, it does not appear that The Fed will be lowering interest rates in any significant fashion until at least late this year.
If you are a buyer, your best bet in this market is new home construction. If you are a seller, your best bet is to market to well-heeled out-of-state buyers. For them, your home is a bargain compared to where they are moving from.
If you would like more information or to discuss these statistics in greater detail, please either call me at 408.827.8484, or email me at Bill@HillCountryHomesteads.com.
