Chugging Along
The Fredericksburg Texas real estate market is still chugging along (albeit at a much slower pace than in recent years). Unimproved land still seems to be the property class showing the most resistance to the current negative market forces (i.e. interest rates, credit requirements, etc.).
Housing (most any community’s economic bellwether) remains stubbornly anemic. As sellers are slow to realize the adverse effects that macro-economic conditions are having on the local market, they are slow to accept the reality of decreasing prices and so inventory builds (increasing competition), placing additional downward pressure on prices.
As I have mentioned before, there are two types of buyers in this current real estate market, those that are content to wait until prices DO drop, and those that can’t afford the combination of current prices and current underwriting limitations. Matching buyers who either won’t buy or can’t buy with sellers that won’t adapt their pricing strategies is a formula for…say it with me people…stagnation!
The jury still seems to be out as to whether or not the current “housing crisis” (as defined by the national media with horror stories from both coasts, Las Vegas, etc.) will have as noticeable an effect on Texas, in general and Fredericksburg, in particular.
I find myself in the unenviable position of advising buyers to wait a little longer before “pulling the trigger” (as I believe things will get a bit worse before they get better) and telling sellers they’d better consider serious price reductions to “jump ahead” of the market competition. The former position costs me sales and the latter costs me listings (and the subsequent sale) but at least I can sleep at night knowing my advice is sound. Remember, Experience Matters
