REAL ESTATE MARKET UPDATE FOR 2016
FREDERICKSBURG AND GILLESPIE COUNTY
2016 was a good year for real estate in Fredericksburg and Gillespie County. In some ways it compares closely with 2015. While year-end numbers are still coming in, they are not likely to change substantially from those we already obtained from the Central Hill Country Multiple Listing Service as of January 2, 2017. Here are some examples:
MARKET INDICATOR 2016 2015
Total All Sales in Gillespie County 523 535
(about the same, there may be a few more added to 2016 before it is over)
Total Volume of Sales $215.8 m $191.9 m
(fewer sales but for more money means higher average prices)
Average Days on Market (“DOM”) 273 350
(marketing time declined/improved for the listings that SOLD)
Highest Sales price in the MLS $5.8 m $4.6 m
Number sold under $400k 367 or 70% 417 or 78%
(fewer listings sold in 2016 most likely because fewer were available which were priced under $400k, not because sales slowed down. Note also that a smaller percentage of total sales went for less than $400k )
Average Sales Price $413k $359k
Median Sales Price $275k $245k
Price category with largest # sales $200k $200k
(in 2016, there were 115 sales in the $200k category or 22% of all sales); in 2015, there were 131 sales or 25% of the total number of sales. The number of sales in this category are declining slowly as prices rise)
This next section compares the RESIDENTIAL MARKET IN FREDERICKSBURG (city limits) in 2016 vs. 2015. Results may change some as year-end numbers are still coming in to the MLS.
TOTAL RES SALES IN FBG 206* 211 (*results still coming in)
AVG SALES PRICE $348K $299K
AVG SALES PRICE/SF $181/SF $165/SF
MEDIAN SALES PRICE $296K $260K
AVG DOM 120 119
TOTAL VOLUME SOLD $72M $63M
AVG SIZE HOME SOLD 1951 SF 1850 SF
By no means is this an exhaustive study of all our local real estate market indicators, but it gives you some idea of how our market looks versus the previous year. In our opinion, this review would not be complete without discussing INVENTORY. Because the Residential category is by far the largest single type of real estate sold in our market, it is considered the most significant for our market review.
Number of Active Residential Listings in Fbg 96 homes
Total # of Res SOLD in 2016 206 (or an average of 17.17 / month)
Residential Inventory at the end of 2016 5.59 months
(6 months of inventory is considered a “balanced market”, that is, neither favoring Buyers or Sellers.)
Overall, our Residential Market would be considered “Balanced” but leaning towards the Sellers. However, if examined more closely by $100,000 price category, we find shortages in inventory in some of the lower price ranges, particularly those under $400,000. Follow some simple mathematical gymnastics below:
Number of Active Residential Listings available 51 homes priced under $400k
Number of Res SOLD under $400,000 in 2016 153 homes or 12.75 / month
Inventory (# available / rate of sales) 4 months of inventory (51 / 12.75)
So, as you can see, we have 4 months of inventory available of homes in Fredericksburg listed under $400,000. That indicates a Seller’s Market for this price category and tends to put upward pressure on prices. Higher price categories may vary dramatically and indicate more of a Buyer’s market. If you want to know where you fit in, let us know and we can look at specific price categories for you and show you where other thresholds may lie.
If we can help you regarding the market indicators on your specific property, or if we can help you compile a reasonable offer on a property you wish to buy, please contact us.
Again, our information here comes from the Central Hill Country Board of Realtors’ Multiple Listing Service as of January 2, 2017. Results may vary some as more Realtors get back from the holidays and update the MLS, but we do not anticipate any significant swing in the data. The information is deemed to be reliable but specifically not guaranteed.