FAIR OAKS RANCH HOUSING REPORT FOR JUNE, 2024
The scorching hot COVID real estate market is a thing of the past
Intro
Well, I wish I had better news, but the market is so slow in Fair Oaks Ranch that there was insufficient data to perform the usual monthly analysis. Therefore, this month’s data includes data for Boerne and Fair Oaks Ranch. High interest rates have essentially put the real estate market into a deep freeze.
Homeowners with low interest rate mortgages are reluctant to sell and take on a new mortgage with what could be as much as double the interest rate. Further, many potential buyers are priced out of the market as they cannot afford the payments that go along with high interest rates.
Insufficient transaction in June forced me to include date for all of Boerne
The “nuts and bolts”
Let's dive into the data to understand how these metrics are correlated and what they mean for buyers and sellers.
First, let's look at the Months Supply of Inventory, which is currently at 6.5. This metric indicates how many months it would take to sell all the current inventory of homes on the market if no new listings were added. A lower number typically indicates a seller's market, while a higher number suggests a buyer's market. During the past several months we’ve seen a steady increase in inventory, slowly shifting the market towards a buyer’s market.
If there is any good news in the local market, it is that prices are remaining fairly steady. A lack of overall inventory is propping up prices as the few buyers in the market compete for the same houses.
An increasing “Months of Inventory” indicates a shift to a buyers market
Next, we see that the 12-Month Change in Months of Inventory is +1.56%. This shows an increase in the supply of homes for sale over the past year. Rising inventory typically means more choices for buyers or a cooling market, or both.
The Median Days Homes are On the Market is 44, which indicates how long it takes for a home to sell on average. A lower number suggests a faster-moving market, while a higher number might mean homes are sitting on the market longer. During COVID, many homes sold in less than 44 hours of being listed on the MLS. Those days are long gone. If you want to sell your home quickly, consider marketing to out-of-state buyers. For example, in this article, I point out that the median price for a Silicon Valley home is now $2.1M and the household income needed to buy it is ~ $569K/year. When you view the article, note what that $2.1M gets you; you’ll be amazed. OUT-OF-STATE-BUYERS WANT YOUR HOME.
The List to Sold Price Percentage is 96.6%, showing that homes are selling for about 96.6% of their listing price on average. A higher percentage typically indicates a strong seller's market. This number has been slowly but surely trending downward. What that means is if you are selling, expect to make concessions.
Lastly, the Median Sold Price is $699,900, which is the middle price point of all homes sold in the area. This gives buyers and sellers a benchmark for pricing their properties. Again, because of too few transactions to get a good picture of Fair Oaks Ranch, this number includes all of Boerne. It’s useful information but not necessarily reflective of the actual number for Fair Oaks Ranch.
In Summary
With a moderate Months Supply of Inventory, increasing inventory levels, relatively low median days on the market, a high list to sold price percentage, and a median sold price of $699,900, we are seeing a market that offers opportunities for both buyers and sellers. Buyers may have more options to choose from, while sellers can still expect strong prices for their properties. It's a balanced market that offers benefits and challenges to both sides.
I differentiate myself as a Texas Realtor by having 1100+ direct connections to California real estate agents. They know who are selling and moving to Texas, often with sufficient equity to buy here outright, in cash. They also know those families that want to buy a home to raise a family, but are priced out of California’s insane market. Sellers that list their homes with me will have their homes presented directly to these 1100+ agents.
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Bill@HillCountryHomesteads.com | 408.827.8484
