In a world unsettled by a global pandemic, it can be difficult to know how to go about our daily business, especially if the idea of buying or selling a home had been on your to-do list before the quarantine.
One of the questions we are asked frequently is about how the pandemic has affected the real estate market; is it smart to think about buying a house right now? If I try to sell my home this summer, am I just signing up for financial disappointment?
Like you, we are all figuring out the best choices for our family as we transition to a new normal. Financial decisions are on everyone’s mind! As a family-owned business, we know how important your family’s future is to you, which is why we wanted to provide data-driven insight to help you make an informed, confident decision about investing in real estate.
Here are the real estate stats for the Central Hill Country at large and Gillespie County specifically:
For the Central Hill Country, if we compare the real estate stats for the month of April in 2019 and April 2020:
- The median price of a house is up 7.4%
- The number of active listings is down 6.3%
- The number of closed sales is down 18%
And in Gillespie County specifically, comparing the month of April 2019 and April 2020:
- The median price of a house is up 6.6%
- The number of active listings is up 3.8%
- The number of closed sales is down 31%
For the Central Hill Country, if you compare the stats for the span of months between January-April in 2019 and the span of months between January and April 2020:
- The median price of a house is down 7.8%
- The number of active listings is down 5.7%
- The number of closed sales is up 5.5%
And for Gillespie County, comparing January-April in 2019 and 2020:
- The median price of a house is down 3.3%
- The number of active listings is up 1.9%
- The number of closed sales is up 7.1%
What can we take away from these numbers?
In Gillespie county, from the beginning of the year until now, the number of closed sales is actually up, even though it took a dip because of the pandemic. We have seen this to be true in our own business; initially there was a bit of a stall in buyers looking at properties, but since then we have been more busy than ever. People are back to eagerly looking for properties for purchase.
It’s the same for the Central Hill Country at large; there have been more closed sales from January-April in 2020 than in January-April 2019.
Across the board, the average price of homes has generally held steady. In Gillespie county, there are a few more homes for sale this year than last, with the Hill Country seeing a slight dip in the number of listings from this time last year.
These numbers from the Central Hill Country Board of Realtors and the Texas A&M University Real Estate Center demonstrate that despite the uncertainty of the last few months, the real estate market is holding steady, which is promising news for buyers and sellers alike.
Financing a Real Estate Purchase
If you decide to move forward with a sale or purchase, there are some important things to keep in mind in terms of financing. Lenders have tightened their criteria for home purchases since the outbreak of coronavirus, and the Federal Housing Administration now has stricter criteria for qualifying for a loan. However, if you meet mortgage guidelines, financing rates are relatively low, and if you’re looking to purchase real estate as an investment for your portfolio, you can borrow against the equity in your existing properties at rates that are historically low.
We’re Here For You
Purchasing or selling a home or property is always a big decision, and we’re dedicated as a team to talking honestly with you about the optimal timing and pricing of any real estate decision. Given the latest data, we feel confident that investing in a home can be a positive option for you and your family in 2020.
Call or email our office today to start a friendly conversation about your future home goals!