Current Observations Of The Rockport Texas Real Estate Market

Current Observations:

Trends in the housing market for Rockport are sometimes difficult to establish. We need to be careful looking at month over month numbers, either this month to last or same month year to year. The market is just too small and can be influenced by one or two sales or even when the last day of the month falls. Unfortunately, the available data is only from mid-2007 but we estimate that the market is off approximately 50% from the peak years of 2005, 2006 and 2007.

This is only an estimate. This month we are focused on single-family houses. Condo info is included but should be viewed carefully. The lot market is even harder to evaluate. There is a huge inventory of lots compared to sales. If more details are needed on the condo or vacant lot market, we can provide, just send us an email.

Looking at the single-family housing market Jan-May, there are several observations and conclusions we can make. First, there is a market and it has improved over 2009 but lags 2008 in number of transactions closed.

The inventory of 479 available units is not huge but at current sales pace represents 23 months of inventory. Six months is considered balanced. Average days on market is also very high.

Forty-seven (47%)percent of the closed activity is between $100,000-$200,000, while only eleven (11%) percent is above $500,000.

Finally, the median price has steadily gone down the last three years.

My conclusion: there is a market, not what we would like but a market. Until the months of inventory drops below ten months, there will be significant pressure on price. The upper end will continue to underperform but there is a market. Finally, there appears to be a disconnect between the expectations of sellers and value seeking buyers. On the bright side, interest rates are very low with 30 year fixed rate below 5%. The economics of our feeder markets are improving. Oil and gas activity in the region has picked up significantly which may help with confidence.

For more information, contact Lee Swearingen/President