Current Observations:
An analysis of the Rockport single-family housing market is all about inventory and prices. Units of inventory and months of inventory continue to grow. Months of inventory is one of the most widely watched indicators of market condition. Six months is considered a balanced market, meaning, with six months of inventory it is neither a buyers or sellers market. The Rockport market ended July with Twenty-Six (26) months of inventory.
One would assume that it is a strong buyers market. Prices, however, do not reflect that. Average prices are down modestly as is the median price. It is interesting to note that there is a significant difference between average price and median price.
There is generally a correlation between median price, number of units sold and inventory. This correlation is not moving at the same pace in the Rockport market. Inventory is up, number of units sold is down from 2008, but the median and average price have only moderated slightly. In most markets supply and demand would come into play, prices would move down, units sold would improve and inventory would be reduced. It will be interesting to watch this
market and see what happens over the next six to eight months.
Other things to note: most of the activity is below $200,000 leaving few buyers choosing the upper end; most of the condo sales were below $100,000; the inventory of lots is much higher than houses; housing foreclosues are not significantly affecting the market (even though a few are showing up); interest rates are historically low but the underwriting process is getting more difficult by the week.
For more information, contact Lee Swearingen/President
lees@ronbrown.com
(361) 575-1446
Offices in Rockport, Ingleside, Victoria, Cuero and Wharton, Texas
www.rockporttexasrealestate.com