Now the good news. The market seems to have stabilized and even shows a little improvement. (Too early to predict how much improvement.) The market we are settling into is similar to the period 2001 - 2004.
Median and average prices continue to move up. However, observing the line graph on page two, we see the number of units sold line has crossed downward from the median price line. One of these lines will eventually move in the opposite direction. Hopefully, it will be units sold moving up.
Well over fifty percent of our sales continue to fall between $50,000 and $150,000. Inventories of properties in this price range are being challenged. Either more properties will come on the market indicating a move up market or higher priced properties will retreat into this price range.
Interest rates remain incredibly low with 30 year fixed rate loans available below 5%. Indicators are these will begin to move up later in the spring and required down payments may also increase.
The tax credit for first time buyers and those buying a primary residence has played a role in this market but probably not to the extent as in other markets. The tax credit is due to expire the end of April.
The government, in its wisdom, has changed the disclosure rules for lenders and title companies and surprisingly nobody seems to understand them. It is very important to have a good Realtor to guide you.
To view a residential real estate market report for Victoria, TX, view Market Information on our website
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