Could it be? The Waco real estate market, too hot? In the last few years, our area has experienced a seller’s market that I haven’t seen in my career in real estate! Let me put this in perspective, bear with me.
In 2013, I decided to sell my house so I did what every seller should do… I interviewed about 2 dozen real estate agents and chose, who I feel is the best REALTOR® in town… me! 🙂
Anyway, in November 2013 I put my house on the market and got it under contract pretty quick. I was a little afraid of the appraisal. I was concerned that my house wouldn’t appraise out for the amount that I had it under contract. You see, I had my house under contract for a price per square foot that was higher than any other house that sold in my neighborhood – in history (homes with no swimming pool). Needless to say…. I was sweating a little. As a matter of fact, the average price per square foot my neighborhood that year was $84.22 and I had my under contract for $92.90 per square foot. Too make a short story long, the appraisal worked out, I sold my old house and moved into the new one.
Fast forward to 2017 – 3.5 years later. I had buyers looking in my old neighborhood. I showed them a house that was almost exactly like mine. When I say almost exactly, I mean it. Same builder, same street, same side of street, same floor plan, same size, same finish out – The only difference? Paint color and my house was 3 years NEWER, that’s it – nothing else different! Okay, brick was a different color, but everything else… the same.
That house hit the market at $120 per square foot! Over $27 per square foot HIGHER than I sold my house. That house sold in a just days for FULL asking price. Remember, when I sold my house, NO HOUSE in my neighborhood (no pool) had sold as high as mine (per square foot) – ever. I lived in the house for about 10.5 years. In those 10.5 years, my house had gained in value 30.2%. From the date when I sold my house to when the other house sold – 3 years and 4 months. From what I sold mine for to what the other house sold for, the increase in value was 29.6%. What took 10.5 years for valuation now had taken only 3.5 years! That’s three times faster then normal!
So, is the market too hot? Maybe so? Is it the “fixer-upper” effect? Who knows. Texas, as state, has experienced huge growth recently, could it be that? Not sure. How long can it last? Dont’ have a clue, but I do know this “hot” market has been going on now for about 3 years, with 2017 being the hottest, it seems.
Here’s a great article from the Waco Trib: Waco Housing Market
