Year to date figures for the Victoria market indicate a 9.3% increase in units sold along with a corresponding increase in total dollar volume. A closer look reveals that the entire increase was in the first five months of this year. This was the period that was heavily affected by the Tax Credit for first time buyers. A closer look shows that the period June thru ctober was down about 10%.
Several things contributed to the fall off, one is a lack of market momentum after the stimulus and secondly, very aggressive underwriting restrictions on mortgages. New mortgage underwriting has resulted in a harder look at the borrower, a thorough look at the property and a resulting longer period to close a loan.
Inventories have inched up to 7.2 months overall. The challenge is 56% of the sales are in the $50,000 - $150,000 price range but only 47% of the inventory is in this range. This indicates that demand in the lower medium price range exceeds supply. While looking at the market above $300,000, we see that we have inventory of 62 homes but only 32 sales to date. Throughout the year, we have seen the median price slip but the average price hold. This would indicate that most of the demand has been at the lower end but there have been a significant number of upper end sales compared to the past. (Keep in mind that most first time buyers were buying below $150,000).
On the positive side, most economic indicators for Victoria are looking up. Jobs, sales tax returns, hotel occupancy, are all on the upswing. It might take a while for these to show up in housing, but it is coming.
Potential buyers should keep an eye on interest rates as they are beginning to inch up but remain historically low.
The Victoria region is truly blessed compared to the state and nation. We don't have to go far to see a much different market. If one is in the market for a second home, now is a great time to be
looking. Rockport, for instance, has seen a dramatic pull back in prices. (Ask for our Rockport report).
For the complete report, click on the link.
http://www.ronbrown.com/marketinformation.asp
For more information, contact Lee Swearingen/President
lees@ronbrown.com
(361) 575-1446
Offices in Victoria, Rockport, Ingleside, Cuero and Wharton, Texas
Information Herein Deemed Reliable but Not Guaranteed
and does Not reflect all transactions in the market.
Source: Victoria Multiple Listing Service
