The housing market continues to improve in the Victoria area. 2011 ended well above 2010 in units sold, dollar volume and price. This is significant since the first half of 2010 was stimulated by the “First Time Buyer Tax Credit”. Additionally, we saw month over month improvements throughout the year. This trend establishes that the local housing market has recovered and is moving forward at a fairly brisk pace.
The main thing keeping the market from being more robust is inventory. We ended the year with less than 300 homes on the market for only the second time in more than ten years. We actually have clients ready to buy with mortgages approved but unable to find a home. Making the situation more difficult is that 80% of the transactions are under $200,000. Builders are typically over that price with their products and therefore are not providing inventory where most of the market’s demand is.
My office predicts we will continue to see upward pressure on demand as we move into 2012. Many buyers who have been in the market listening to the national news will realize that if they are going to purchase a home they will have to come closer to meeting the seller's terms. Additionally, many of the newcomers to the area have not been able to qualify for a mortgage because they haven't held their job long enough. As time goes on, these potential buyers will become actual buyers. Industries in the area are continuing to hire and bringing new home buyers to this market. How long will this continue, nobody knows but it is a good problem to have.
Victoria is starting to get noticed nationally and regionally as a unique market. We are looking forward to continued growth in 2012. The demand should push prices upward somewhat. Keep in mind our median and average price is still well below state and national levels.
For the 12 month period ending December 2011:
Average sales price for residential homes was $144,709.
The median price of residential homes was $128,700.