With the “melt-down” of the subprime mortgage industry across the nation, The Waco area has fared well when compared to other cities across America. What’s been happening in Miami, San Diego, D.C., New York, etc… hasn’t been happening in the Waco MSA (really, McLennan County).
Although foreclosures are in fact up for Waco, here are some numbers you may find interesting (Comparing September 2007 and September 2008):
- Number of sales – Up 16.7%
- Average Price – Down 2.7%
- Average Price: 2007 – $138,035
- Average Price: 2008 – $134,264
- Average Days on Market for 2007: 124
- Average Days on Market for 2008: 135
- Total Volume Sept 2007: $23,051,773
- Total Volume Sept 2008: $26,181,408
- New Listings taken Sept 2007: 218
- New Listings taken Sept 2008: 286
I should state that the data used for analysis was obtained from the MLS system we use for the Waco area. This data is single family housing only (including condos, patio homes, town houses, homes with a little acreage). My sales data DOES NOT include: Manufactured homes (mobile), Commercial properties, Farm and Ranch (homes with more than 25 acres), land, lots, and multiple family housing (duplexes, apartments). Also, this data does not include homes that have been sold “off MLS”, such as for sale by owners, homes not listed in the MLS, etc…
Usually I don’t like to just look at data for a month at a time, but I though these number looked a little interesting. Home sales are up, but yet the average price (home value) is down? If you look a little further, you’ll notice that new listings are up as well (about 31%). Not hard to figure out that although the buyers are still around, there’s more inventory on the market too (compared to last year), which increases the supply side of “supply and demand”. Of course, when you have more supply, prices tend to go down. Now, the fact the Waco area foreclosures are up (57% according to the Waco Trib), probably added to the increased inventory of homes on the market.
The news media has added to the “panic” of home values falling through the floor! I’m sure in some areas that is close to accurate, but “Texas ain’t Cali-forny”. According to various reports, one reason Texas stays a relative affordable place to live and buy a home, is because we have a lot of land still left to develop and the new home construction industry has kept up with buyer demand and has (at least not yet) “over-built” to drastic levels.
So you live in Waco and want to sell or you moving to the area and want to buy… What does this mean for you?
Well, if you’re selling, you’ll need to price your home aggressively. After all, there’s more competition now if you’re a home seller than there was a few years ago. The buyers are still there, but they have more choices.
If you’re buying? You should’ve more to choose from! But at the same time, realize this isn’t California or New York or Florida, and home values are “falling through the floor”. It pays to be realistic about Waco’s real estate market and price. With that being said, on average, homes in Waco have sold for about 96% of current asking price. With the increased number of homes on the market, you may be in a position to negotiate for more than the average 4% difference. Of course, if a home is prices aggressively and the price is already at a lower than normal price, be aware you may find yourself in a multiple offer situation. In that case, if you really want the home, you’ll need to put your best offer foward from the get go.
If you’d like more detailed statistics and analysis, be sure to sign up for our Waco Home Sales Report. This report will include FAR MORE data than you found in this post, including sales by school district, area, neighborhoods, days on market, etc… Best of all it’s free! We send at our report on a quarterly basis. If you’d like to be “plugged in” to the Waco real estate market, sign up now!
Good things are happening for Waco! The real estate market, for the most part, has held up well compared to the other areas on the country. People seem to be moving to area and more growth is on the horizon!