2022 Q2 KERRVILLE AREA HOUSING REPORT

2022 Q2 KERRVILLE AREA HOUSING REPORT

Real Estate Hot Topics As the market continues to correct itself, rates stabilize, and inventory continues the current upward trajectory, motivated buyers will have less competition and more opportunities to secure a home. PRICES

According to the 2022 2nd quarter Kerrville MLS market statistics report, prices for existing single-family homes in the Kerrville area grew to a median sales price of $382,500, a 10.9% increase year-over-year. Although the year-over-year comparison denotes a boost, it is essential also to study the trend month after month. For example, the median sales price for the last three months declined from $424,500 in May to $400,500 in June and then to $375,000 in July.

ACTIVITY

As the market begins to correct, many sellers are pricing their homes less aggressively, giving buyers more purchasing opportunities despite higher rates. Demand for mortgages has declined as rising interest rates have pushed some buyers out of the market. As for the sales to list price ratio, homes are selling on average for 99.8% of the asking price.

INVENTORY

The number of homes listed for sale in the Kerrville area grew to 104 for the 2nd quarter of 2022, an 11.8% increase year-over-year. Inventory levels have been declining monthly for the last two years, beginning in March 2020 until our first increase in March this year. Every month since has marked an increase in inventory levels. While inventory is still low, homes listed are still attracting competitive offers.

RISING RATES

Rates were at an all-time low, and while they are rising, they are also normalizing. As a result, the potential impact on purchasing power for all buyers, especially first-time homebuyers, is real. The good news is that price appreciation is predicted to be at a more normal rate, and inventory will increase, resulting in fewer bidding wars and multiple offers.

PRICING RIGHT

As the market adjusts to pre-pandemic, healthy levels, pricing is more critical than ever. Our expert agents at Fore Premier Properties know the value of homes in each market, can assess the condition, understand where the market is going, and are on top of current buyer demand. These are essential factors to ensure you are not underpricing or overpricing your home and set the right price to attract the most buyers that will quickly generate offers at or above the list price.

DEMAND FOR LUXURY

Despite the most significant economic disturbance of our lifetime, the number of luxury home buyers has significantly increased. In addition, demand for luxury homes and ranches with more amenities, privacy, and space continues to rise as consumers rethink lifestyles and locations.

FORECAST

The housing market is at a turning point from the record-breaking past two years. The record high demand and low supply were not sustainable, and a new direction will be healthy. The market is moderating, shifting back to the years leading up to the pandemic.