Now that the positive effect of the tax credit for first time buyers is over, the Victoria market seems to have found its' pace. Unfortunately, it is somewhat below the pace of 2005-2008 and more in line with 2001-2004. This isn't all bad and lots of markets would happily trade places.
The good news is prices are holding well (both median and average). Inventory is balanced, maybe even a little low in some price points. Units sold for the year is up but mainly due to the tax credit.
One of the challenges we face is lending. Even though interest rates are incredibly low, the pendulum seems to have moved past center for underwriting cautions. Every week, we find a new challenge to qualifying buyers or the property. Most of the time we can work through the challenges but we have seen needless delays and frustrations.
Another element of the housing market that deserves attention is new home permits. In the future, we will include a graph of permit activity in the city of Victoria. There is no effective way of tracking this activity outside the city limits. New home construction is very low. Many factors contribute including costs, construction financing, available lots, as well as demand. This
is the housing inventory of the future and we need to keep an eye on it.
The future of the market looks very bright. The announcement of the Caterpillar plant, the expansion of activity in oil and gas exploration, recent hiring announcement by some of the petrochemical plants and the soon to begin expansion of the Coleto Creek Electrical Plant are all great job creators. This activity will have a positive effect on the total housing market. Since we have seen very little "move up" market activity in recent years, the market should be able to accept these positive developments.
For more information, contact Lee Swearingen/President
lees@ronbrown.com
(361) 575-1446
Offices in Victoria, Rockport, Ingleside, Cuero and Wharton, Texa