Real Estate Market Statistics & Updates — Russell Realty Group

Midway ISD to Build New Schools?

A couple of days ago Iwas browsing the Waco Trib’s website and came across a news story about Midway ISD‘s interest in two parcels of land. About 28 acres off of old Temple Rd and a 56 acre plat off of Ritchie Rd.

It appears Midway ISD is planning for future growth by securing land now. The superintendent said the land will be slated for an elementary or intermediate school and a middle school in the future.

Call me a geek, but I immediately pulled up the demographic and projection study that Midway ISD published in February, 2012 – here’s a link to it

If the growth projections for the Midway Independent School District hold up it looks like they’ll need to build, they won’t have a choice. Here’s a summary of capacity (problems) by the year 2022… just the next 7 years:

Castleman Creek Elementary student enrollment will be 122.34% of capacity
Spring Valley Elementary student enrollment will be 106.72% of capacity
South Bosque Elementary student enrollment will be145.17% of capacity
Midway Middle School will be at 104% of capacity
Midway High School will be at near capacity

The two biggest hit schools will be Castleman Creek Elementary and South Bosque Elementary. That’s not surprising with the past and current growth of residential developments along the “hwy 84 corridor”, the new Chapel Ridge subdivision and now the 320 acre neighborhood that DR Horton is developing on Ritchie Rd.

The new DR Horton subdivision is expected to add about 1,500 new homes. The Chapel Ridge neighborhood is expected to be about 350 homes. Wow! That’s over 1,800 new homes – just in the one pocket! Also, don’t forget about the new apartment complex that opened up at Woodgate and Panther Way.

I’m not a member of the school board. I just tend to be a numbers nerd and real estate market geek. I always feel like you can make decent predictions based on the “flow” of the real estate market. Right now, the flow is pretty strong in Midway ISD. Sales are up 23% from last year and up 59% from five years ago.

I would imagine that at the very least, Midway ISD will need to redraw some of the elementary school zone boundaries in the future, but it appears that (at least) one new school will need to be opened.

Just a couple of days ago I was having a conversation about this very thing with another Realtor who lives in Midway ISD too… their first response, “Well, the last thing I want is another bond.” Actually, the Midway ISD portion of our property taxes is one of the cheapest in the county, believe it or not. Here’s a quick breakdown of the school tax rate per $100 of valuation for various school districts:

Midway ISD: $1.32
Robinson ISD: $1.51
China Spring ISD: $1.538834
Lorena ISD: $1.64
Waco ISD: $1.353240

It will be interesting to see the growth of areas that are served by the Midway school district over the next 7 or 8 years, for sure!

Waco Real Estate Update for 2012 Sales

If you’re a numbers nerd (like me), then you’ll love this!

These stats are comprised of data found in our MLS system provided by the Waco Association of Realtors.

Wow, it’s been a crazy market the past several months (especially in Midway ISD). There seems to be a shortage of good listings. Great houses at good prices are jumping off the market right now, kind of reminiscent of 2007. With interest rates still holding low, buyers are coming out from the shadows to buy.

As for buyers, we’re getting a lot of calls from people who are “upgrading” their current homes. Heck, that’s what I’m doing myself! After 10 years in our current home (and interest rates low), my wife and I decided it’s time to go ahead and build the house we’ve been talking about building for the last 3 years. Soooo, if you happen to live in the Sunwest subdivision, I’ll be your new neighbor by Thanksgiving. You’re welcome for the warning 🙂

Anyway, back to the statistics. I think you’ll find these pretty interesting. I ran these numbers in January for the previous year (2012). It’s possible that a couple of homes didn’t get reported as sold by the time I ran these numbers, so the final tally may be just a little off (but not enough to make a real difference). These statistics are only based on RESIDENTIAL sales. They don’t include manufactured housing and only homes in McLennan County.

Total number of properties sold: 1,939
This represents a 14.4% increase in sales from the year before. As a matter of fact, only looking at sales in Midway ISD, the market is up OVER 27%! That’s a pretty huge increase. As of this writing, sales in Midway ISD are almost 7% higher than last year too!

Average sold price: $146,258
The average sold price for homes in 2011 was $140,048. A 4.4% increase

Average days on market: 143
Average days on market for 2011 was 137. I find this kind of odd though, that homes are sitting on the market almost a week longer than the year, even with the increase of sales. Those days on market also include the “in escrow” period. I have spoken to several lenders that are telling me that’s taking them a little longer to close a loan than previously. This could add to the longer days on market.

Expired/Withdrawn/Terminated to list percentage: 23.1%
This means that out of 100 listings, roughly 23 of them expired or was terminated (for various reasons). When a listing expires (home doesn’t sell), it’s because they were asking too much for it. This is a hard obstacle for some Realtors, getting a seller to understand the market and pricing the house at the right value. Many sellers think their house is worth a lot more than it really is. When we take a listing, we constantly watch the market and rely that information to our seller so we can make price adjustments if necessary.

Price reduction percentage: 41%
This means that 41% of the listing that sold last year, 41% required a price reduction. This simply means that the seller (or the agent) priced the house to0 high to begin with. Ideally, you want to price your house at the right price from the beginning. When the days on market is shorter, you’ll usually net more money from the sale. The longer a house sits on the market, typically the lower the price and the lower you net (especially if you factor in interest, taxes, repairs, etc… while your house is on the market).

Average sold price to original price: 92.3%
This means that if someone was asking $100,000 for their, on average, they would sell it for $92,300. I caution you to take this statistic with a grain of salt. It doesn’t mean you need to price your house 8% higher! There are some pretty large homes that required price reduction amounts in excess of $100,000. This number is only looking sold to original price. We didn’t factor in current asking price! That’s the next stat.

Average sold price to current asking price: 95.9%
This means that we’re NOT looking at the original price at all. JUST the current asking price. So, on average, a $100,000 asking price will sell for $95,900. Once again, I caution to use this stat to price your house too high. You’d be surprised at how many homes (when priced right) sell for full asking price or real close to asking price. The key is to get the price right from the start (well, that’s one “key”… other is appearance, marketing, photography, etc…)

Also, you’ll find it interesting that the average days on market for homes that required a price reduction was 211. The average days on market for homes that did NOT require a price reduction was only 90! That’s a HUGE difference.

Average sold price by school district:

Waco: $101,127
Midway: $187,445
China Spring: $182,834
Connally: $119,818
Lorena: $200,062
Robinson: $155,156

Market share by school district:

Midway: 34%
Waco: 32.4%
China Spring: 9.4%
Connally: 3.6%
Lorena: 2.7%
Robinson: 5.1%

I find the market share by school district interesting! Waco has the largest school district, but yet Midway ISD in 2012 had the biggest share of the market! You’ll notice that the #3 spot is held by China Spring ISD, but it’s a “distance third”. You can see where the buying frenzy is happening.

So is it a seller’s market or a buyer’s market?
First we have to define what a buyer’s and seller’s market actually is! Conventional wisdom in the real estate industry states that it’s a seller’s market when there is less than 5 or less months of inventory on the market. A “balanced” market is between 5 and 7 months worth of inventory and a buyer’s market is when there is more than 7 months of inventory for sale.

You may find this interesting; as of this writing, for McLennan County, we have a 6.39 month supply of inventory on the market. This would mean it’s a “balanced” market. If you break it down a further and just look at Midway ISD, we have a 4.36 month supply of inventor on the market, which would indicate a seller’s market!

So is it a seller’s market or buyer’s market? I hate to say it, but it’s both! It just depends on where you’re looking to buy.

If you’d like specific statistics regarding the Waco real estate market, feel free to send me an email or give me a call! I’ll be glad to run any numbers you’d like! Days on market for 3 bedrooms vs. 4 bedrooms, homes with swimming pools, by age, square footage range or whatever!

The Truth About the Waco Real Estate Market

I won’t lie, I’m a numbers freak. I love numbers, they tell me everything I need to know (and things I don’t EVER want to know). I’m asked all the time: “How’s the market?”, “Should I sell now or wait?”, “I’m I going to lose money on my house?”, etc….

If you’ve been thinking about buying or selling a home, hopefully these facts and figures will paint a clearer picture for you! Or at least will make you completely confused! 🙂

These stats are derived from information that was obtained from the Waco MLS system. These statistics are for properties that are only classified as “residential” and do NOT include manufactured housing.

Hopefully, you can get an idea of where the real estate market in the Waco area has been, is, and where it’s headed.

In 2010:

– 1,941 homes were sold
– 3,551 homes were listed

Analysis:
This means that roughly 54% of homes that are listed are sold. Wow! Alot of agents, when doing their budgets for a new year, will account for 65% of their listings going to closing. This is an 11% drop from what some agents consider a “base” sold ratio.

Now, some of these homes may have actually been listed in 2009, but sold in 2010. There are two figures that I’m working with here… solds and new listings. I was curious as to how many homes sold in a year (without regard to their listed date) compared to how many were listed in a year.

Now, if we ONLY look at those 3,551 homes that were listed in 2010:

– 1,325 were sold the same year:
This represents at 37.31% sold ratio. By contrast, in 2007, the sold ratio (for homes listed AND sold in the same year) was 66.97%!! (with that being said, about 1,100 MORE homes were listed in 2010 than 2007. Don’t know why yet, I’ll have to do some research).
The average days on market for these sold listings was 88 (keep in mind though, that these days are market also include the time needed for escrow).
35.6% needed a price reduction
The average sold price is $132,838
– 856 are still active:
Out of these 856 homes, the average days on market is 188 (these days on market do NOT include time needed for escrow, as they are still active).
47.9% of these active listings have had at least one price reduction
The average current asking price for these active listings is $176,884

Analysis:
there a couple of ways you can read these numbers, really.
First, you can see that there’s a big difference between what people are currently asking for their homes and what people are buying. This does NOT mean that a house that’s on the market right now at $176,884 will sell for $132,838! What this means… is that buyers (right now) are NOT shopping for the more expensive homes. If you do happen to have a more expensive home, you may need to price it more aggressively than a few years ago, Simply because the “buyer pool” (according to the numbers) is smaller for higher priced homes than homes priced in the $130s.

The smaller buyer pool for homes above $170K doesn’t surprise me. With the tightening of banks, the new regulations, increased credit score requirements, etc… It’s harder for buyers to get a loan today than it was 4 years ago.

Another way to look at these numbers… make sure you get the price right from the start! The homes that were listed in 2010 and sold in 2010 had very short days on market compared to the homes that haven’t sold. A smaller number of those homes had to have a price reduction too!

Alot of people think (and it’s a myth), that they need to price a home higher so they have wiggle room for negotiations. this causes your home to sit on the market longer (and ultimately get a lower price for it). The first 30 days of a new listing is CRUCIAL – That’s the “hot time” for a home fresh on the market. The last thing you want to do is price it too high and knockout any potential buyers that might otherwise be interested in looking at your house. The higher the price (above true market value) means that more buyers WON’T see it. If you price your home right – at the beginning of your listing period, you’ll appeal to a greater range of buyers – which is your goal, to get as many people into your home to look and hopefully put an offer on it!

This does NOT mean price your home “cheap”, it just means price it at it’s true market value – from the start.

-Over 1,000 homes listed in 2010, were classified as “expired” or “withdrawn”!
This means they sat on the market and didn’t sell! Now, it’s possible that some of those listings have been relisted by another agent (probably at a lower price too).

In the grand scheme of things, in 2010, 450 less homes were sold than in 2007. Although, this represents a drop in sales, buyers are still “out there”. They’re price sensitive right now and they have a lot of choices, but with correct pricing and successful marketing, you can get your home sold (and in a timely manner)!

If you need specific statistics compiled for your home, neighborhood, or situation, give us a call and we’ll be glad to get you what you need!

Waco Real Estate Update – Home Statistics and Market Information

As we approach summer (and the “busy” season), many folks are looking to sell or buy a home. Traditionally, with school out for the summer, June – August are the “hottest” months (boy you ain’t lying!) for weather and real estate. The good news is that typically there are more homes on the market to choose from, the bad news is that their are more buyers looking for those homes too. So sometimes (yes, even in this market), you may face some competition with other buyers. Just today for example, we submitted on offer for a house that has been on the market for about 3 months, unfortunately for our buyer, there is also another offer on the table too. If the buyer had made a move just even a few weeks ago, we may have been able to get the house for a little less. You’d be amazed how sellers just aren’t as negotiable when they have multiple offers on a property.

What’s the market doing right now? Well, I am a numbers freak so here are some stats for you to consider. If you’re even thinking about buying or selling, hopefully this will give you some insight in the Waco real estate market – TODAY.

Homes Under Contract

As I’m typing this, there are 308 homes under contract right now.
The average asking price of homes that are under contract is $137,864 (for the Waco MSA)
The average days on market for those homes is 107
23.7% of “under contract” homes is in Midway ISD. 32.1% are in Waco ISD. 10.7% are in China Spring ISD. 5.8% are in Robinson ISD
Only 33 homes under contract are above $250,000. 8 Homes are above $400,000
The average days on market for those 8 homes that are above $400,000 is 217 days! Almost 4 months longer than the average!

Average Price of Homes “Under Contract” – Broken Down by Various School Districts:

Midway ISD: $218,472
Waco ISD: $100,150
China Spring ISD: $132,424
Robinson ISD: $153,466
Lorena ISD: $179,438

Actually, I like looking at homes that are classified as “under contract”, it gives me a feel for what’s happening in the marketplace right now. In what price ranges people are actually shopping, areas, amenitities, etc….

Hey, it’s summertime! You may be looking for a house with a pool – I know that I’d love to have a cement pond right about now! For the entire Waco MSA (mainly, McLennan County), there are 95 active homes (classified as single family homes, new construction, and homes with acreage) on the market that have been tagged as having an in-ground pool. The average price is $410,499. The median price is $349,000. There are 9 homes with pools priced below $150,00 and 19 homes priced below $200,000.

Based on the number of sales during the previous 12 months, there is a 7.8 month supply of homes on the market. The rule of thumb is that anything less than 5 months is a seller’s market. Between 5-7 months – a balanced market and anything over 7 months is a buyer’s market. Although many states have really been hurt by the decline in home sales… Texas, on average, is doing pretty well.

Thought you may enjoy a few “other” stats too:

Other Stats

There are 1,394 active properties on the market in the Waco area
Average asking price $174,894
30.6% of the active listings have 4 or more bedrooms
51.7% of the active listings have 3 bedrooms
17.7% of the active listings have less than 3 bedrooms
37.5% of the active listings have at least 2,000 square feet
The active listing with the most square feet (8,871 SQFT) is priced at $1,420,000! Do you know anyone interested in buying it? 🙂 It’s located in China Spring
35.8% of the active listings have a formal dining room
Out of 1,394 homes for sale, only 46 have 5 or more bedrooms
20.8% of active listings have at least 3 bathrooms
There are 64 homes on the market that are classified as “New”

These are just some fun stats in case you’re curious as to what’s available for purchase in the Waco area. Of course, if you have any specific questions or would like to receive a list of homes for sale that match your criteria, feel free to call us anytime! (254) 523-4284

Waco Real Estate Update – The Swimming Pool Factor

With the Texas Summer officially here, I usually get more phone calls from people asking about homes with swimming pools. It’s not surprising with the warmer temps. The temperature in Waco today, I think the weather guy said, was 738 degrees! With the heat index, it feels like 1,216 degrees.

Often though, some of those folks who are asking me about homes with pools are often surprised how ‘rare’ they are. You would think with the Texas heat every year, more homes on the market would actually have a cement pond!

I decided to do the math and analysis of homes on the market that actually have a pool. What I found was actually kind of interesting… well at least to me, but I can be a numbers nerd from time to time… okay, most of the time. 🙂

I should note though, a couple of these numbers may be skewed just a little. I’ll explain: Sometimes when a Realtor inputs the listing into the MLS system, if the community where the house is located has a neighborhood pool for everyone, some real estate agents will mark that the house actually has a pool. I tend to disagree with this. In the MLS system, when I’m looking for homes, I’m looking at specifics about the house only, not the community where it resides. I usually already know about the community and its amenities.

If I have a listing in a neighborhood that has a community pool then I’ll note that fact in the remarks section of the listing. I won’t choose the option that the HOUSE has a pool, because in all honesty, the house doesn’t have the pool… The neighborhood does.

Actually, I hope to get this changed. I sit on the Waco Associations of Realtors’ MLS Committee this year and I’ve already brought up the swimming pool issue. It would be nice to specify if the house has a private pool or a community pool. That alone could clear up some misunderstandings and make it more clear.

Anyway, back to the original point. When I looked up the listings and did the analysis for homes with swimming pools, I did NOT differentiate between those private pools and community pools. So if you’re looking for a private swimming located on your property, these number should come in a little lower:

Only 9.4% of the homes currently on the market have a swimming pool
Out of all the homes on the market that have a pool, a majority of them (87%) are classified as having a pool that is “in-ground”.
The median asking price of homes that have a pool is $249,000 vs. $128,650 for homes that have no pool
The median asking price of homes that have an “in-ground” pool is $269,000
Since the beginning of the year, 9.3% of homes sold had a swimming pool
The average days on market for homes with a pool is 172
The average days on market for homes without a pool is 159
There’s a little more than 9 months worth of inventory of homes with pools on the market
Homes without pools? About 8.4 months worth of inventory
Out of homes that are on the market right now that have swimming pools – 50% have 4 or more bedrooms and 47% have at least 3 bathrooms
The median age of homes for sale with pools is 24 years
The median square footage of homes with pools is 2,553
Only 11.3% of homes for sale that have a swimming pool are no older than 5 years. Basically, for the whole Waco area, if you wanted a home with a pool and didn’t want it to be more than five years old, at least 4 bedroom 3 bathroom, with at least 2,000 square feet, you’d only have 8 houses to choose from. Out of those 8 houses, 6 are in Midway ISD.
Homes for sale with a swimming pool breakdown (by school district): 1 – Axtell, 1 – Bosqueville, 1 – Bruceville-Eddy, 7 – China Spring, 4 – Connally, 2 – Gatesville, 6 – Lorena, 1-Marlin, 1 – Mart, 31 – Midway, 3 – Robinson, 1- Rosebud-Lott, 6 – West, 35 – Waco

Looks like Waco and Midway school districts (combined) account for 50% of the homes that have swimming pools.

These numbers aren’t life altering, but it does shine some light on where the Waco Real Estate market is concerning homes with pools. I always find stats a little interesting, especially when you really start to break them down.

Hope the numbers answered some questions or were, at least, a little fun to read.

If you’re looking for a house right now and need specific statistics concerning what you may be personally looking for, call me anytime or you can contact me online.

Midway ISD to Build New Schools?

Waco Real Estate Update for 2012 Sales

The Truth About the Waco Real Estate Market

Waco Real Estate Update – Home Statistics and Market Information

Waco Real Estate Update – The Swimming Pool Factor

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