The first half of 2010 ended on a mixed note. The twelve month period ending June 30th shows a slight increase in number of properties closed as well as total dollar volume. However, there was a slight decrease in the median price. For the six month period ending June 30th, we saw a significant increase in number of properties sold compared to the same period last year and a corresponding greater decrease in the median price. Ordinarily, we don't focus too much on month to month comparisons, but this time it might be necessary to get a clearer picture of what the market has done. Closings in June were 37% fewer than May but the median price was up 24% in June.
Speculating on what is influencing the market is often risky, but my office offers its opinion. It appears the market was strongly influenced by the "First Time Buyer Tax Credit." This program caught on last fall and a number of people took advantage. Most first time buyers were buying houses less than $150,000. This caused an increase in number of sales but a decline in median price. The program ended April 30th but closings continued through May. With the end of this program, the market lost a lot of momentum. This coupled with consumer concern with the economy, oil spill and news out of Washington, the market seems to have taken some time off. Hopefully, it will be brief. Actually, we are starting to see traffic pick up which may reverse the trend of the last month.
On the bright side, inventories are adequate. Currently our housing inventory is 5.9 months (remember 6 months is considered a balanced market) and we don't see an oversupply in any one price range. Since October 2009, only 32 new homes have been permitted in the City of Victoria. This is low and should help the resale market. Finally, interest rates remain at historical lows and unemployment has gone done to 7.6% according to the Texas Workforce.
June 2010 home median price for the Victoria, Texas market: $138,000
June 2010 average home price for the Victoria, Texas market: $156,396
I’m always happy to answer any questions about these statistics. If you are in the market to purchase a home and require competent and caring representation, please call me at (361) 550-4304.