As we enter headstrong into the second quarter of 2015, let me use some of PhD statistical experience and expound on the current housing situation as recorded nationally - Existing-home sales jumped in March to their highest annual rate in 18 months! According to the National Association of Realtors, “Sales have increased year-over-year for six consecutive months and are now 10.4 percent above a year ago; moreover, March's sales increase was the largest monthly increase since December 2010 (6.2%).” This sales growth is most likely due to buyer confidence and low interest rates (NAR, April 22, 2015).
So how does the national housing trend compare with the Brazos Valley Real Estate Market?
From February 2015 to March 2015, the number of real estate sales grew over 60%, with 320 total purchases, totaling $67,643,518. Of this 320, 202 were single family homes, over 75% growth from February 2015. To really put into perspective the growth that the Brazos Valley has witnessed over the past few years – the chart above shows the total monthly sales for March from 2010 – 2015.
And to answer my latest blog comment about Johnny Football skewing the market – we can see that 2014 showed a 49% growth vs. the 34% growth witnessed in 2015; however, even without our Heisman Trophy winner, the Brazos Valley witnessed another incredible amount of growth (34%) far surpassing the national average (6.2%).
Not only have the number of homes being sold jumped, the price of homes has also seen a tremendous spike. The median price for March 2015 was $200,000 - $240,000 - In March 2014, the median home price was $140,000-$159,000. The average home price in 2014 was $183,000 and in 2015 the average home price has risen to over $210,000.
What is fueling this growth? Is the Brazos Valley experiencing an influx of residents (not including the collegiate student population)? According to the Census web site, (http://quickfacts.census.gov/qfd/states/48/48041.html), in 2010, Brazos County had 194,851 residents; in 2014 it was estimated that the Brazos County had 209,152 residents. If we analyze the census data - only 15,000 new residents (7% growth in 4 years) cannot be the cause of our housing frenzy – there must be another explanation...
In my professional opinion, fueled by my recent buyers and their purchasing rationale, the Brazos Valley is experiencing a Super Cell of Sales accelerated by buyers forecasting the future for themselves and their potential future Aggies.
Retirees: Realizing the veracity of our Ol’ Ags and their devotion to Texas A&M University – many see this time as the right choice for an affordable retirement home, even if retirement is several years and/or decades away. The Brazos Valley is an optimal place to retire due to the renowned and growing health care system, a dedication to the preservation and expansion of Music & Arts, and the potential long term gains of homeownership – buying now so that at retirement age, the home is paid for, allowing for excess travel monies to watch the Aggies at all of the Away games.
Future Aggies: For those purchasing for their future Aggies, the same mindset is apparent. Even if the future Aggie is in high school (for some, it has started prior to elementary school), parents of future Aggies realize that proximity to the campus of Texas A&M University is important as rental rates are increasing and bus routes are decreasing. Our Rental Locator team will tell you - students experience the dorm or apartment living for the first year or so and realize a home, with a yard (for that must-have college dog), and a place to BBQ becomes important. Buying a home now, renting and covering expenses, creates an opportunity for their future Aggie to have a house in Aggieland, where rent is paid by roommates and parents have almost no expenses. It is a win-win for the entire family (and future dog)!
So where does that leave the 209,152+ residents calling the Brazos Valley home? In an excellent position to sell their current home for a profit and upgrade to a larger home and/or newer home. And for those buyers looking to take on a real estate project and create additional wealth with a fixer upper – the Brazos Valley still has plenty of diamonds in the rough, just waiting for your special touch.
Whatever your needs, I can help you find your perfect place, be it across from Kyle Field or on 100 acres on the outskirts of town. Don’t hesitate to make your next house a home in the Brazos Valley!