Fair Oaks Ranch Housing Report: July 2024

Intro: Market Type

First, last month I included information for all of Boerne as there were insufficient transactions to perform the analysis for just Fair Oaks Ranch. I tweaked the data source a little and determined that there likely were sufficient transactions, they didn’t show up because of how I was filtering the data. I believe it’s corrected now.

As a potential buyer or seller in the current real estate market, it is important to understand the correlation between the various metrics that influence the buying and selling process. Per the chart above, we have now formally shifted from a Seller’s Market to a “Balanced Market.” The accepted norm is that when there is less than six months of inventory it is a Seller’s Market and when there is greater than six months of inventory we are in a Buyer’s Market. The net of this is that the market favors neither side of the transaction as inventory, at least in theory, matches demand.

Months of Inventory

The “Months Supply of Inventory” is a key indicator of the balance between supply and demand in the market. With a current supply of 5.6 months, this suggests that there is a relatively balanced market, with a moderate supply of homes available for sale. Note in particular that Months of Inventory increased dramatically last month.

Further, the 12-Month Change in Months of Inventory, which has increased by +70.21%, indicates a shift towards a more buyer-friendly market. Sellers can expect longer days on market, lower price offers and demands for more concessions. This increase in inventory suggests that there are more options available for buyers to choose from, which may lead to a more competitive pricing environment.

Days on Market, Sold Listings

Note that “Median Days Homes are On the Market” is registering 18 days for “Sold Homes” while it is showing 55 days for “Active Listings. This is further indication of a rapid change from a Seller’s Market towards a Buyer’s Market. For those buyers with significant funds for a large down payment, high interest rates are less of a barrier. And for sellers anxious to sell, expect hard negotiating from these buyers.

The List to Sold Price Percentage of 97.7% highlights that sellers are typically receiving close to their asking price for their homes. This number is slowly creeping downward as buyers are seeking greater concessions from sellers. I expect this to continue for the foreseeable future.

Finally, the Median Sold Price of $609,500 provides an indication of the average price at which homes are selling in this market. This figure can help buyers and sellers gauge the overall pricing trends and affordability in the area. Note that the number of properties on the market is climbing as well as the median days on market. This is further indicative of a move towards a buyers market.

If you are a seller in the current market, your competition is builder homes. Builder’s are shaving their list prices and are offering discounted interest rates to entice buyers. There are several things you can do to help your situation. First, consider lowering your price. Second, consider offering a 2/1 buydown. This link will take you to more information about it. Third, market to out-of-state buyers moving from areas with higher home prices. Many will have sufficient equity left over from the sale of their home to purchase yours outright, in cash, therefore eliminating high interest issues. Many others will be young families priced out of their markets that can afford to buy here. For example, last month I wrote an essay comparing the costs associated from where I moved from to here; the difference is astounding. This link will take you to that essay.

What I Can Do For You

I have three main focus areas as a Realtor. I help out-of-state buyers find homes here. I help first-time buyers and am certified by the Texas State Affordable Housing Corporation. I help home sellers find cash buyers for their home. I am directly connected to more than 1100 California real estate agents. Sellers that list their homes with me will have their homes professionally presented directly to these agents. They know who are selling their homes and following the more than 500,000 others that have left California and moved to Texas.

Bill Ross | Bill@HillCountryHomesteads.com | 408.827.8484