2005 Year End Results

WOW.  What a year we had in 2005.  Every conceivable category of transaction type and dollar volume that is tracked is way up over 2004. Here are the highlights (total dollar volume):

Total Residential Sales               +23.23%

Residential w/Acreage               +112.8%

City Lots                                  +37.64%

Acreage, Farm, Ranch              +65.89%

Rural Sbdvn lots/Tracts             +47.99%

Commercial                              +51.06%

All Combined                           +58.65%

WOW!

Does this mean the market is over-inflated and ready to burst?  I can answer that by not only saying “no”, but by saying “hell no”!  The fundamentals that have raised the market for real estate in Fredericksburg, Texas to their current levels are still in place and still solid. 

Quality of life, affordability, health care, climate, convenience, amenities, etc. are all things that draw retirees, families, professionals and “new beginners” to Fredericksburg.  Several of the items noted are constants while the others are continually improving to draw more raves from locals, visitors and home buyers.

 I fully expect that 2006 will produce similar dollar volume increases. I also predict that the average sales price in each category (see above) will increase 12%-15%.  An exception to this will be that the average price of a single-family residence will increase by a more modest 3%-4%. 

Despite the lofty results of 2005 vs. 2004, I don’t foresee the 2006 year as being either a “buyer’s year” or a “seller’s year”.  Inventory levels remain healthy and housing starts have been steady (thank you Stone Ridge and Cross Mountain West) and buyer continue to stream in from other areas while locals are “moving up”.  The very definition of market equilibrium. 

RE/MAX again finished the year #2 in total sales volume and, more importantly, re-asserted it’s dominance with a sales per agent ration more than twice that of the nearest competitor!   That, my friends, is a big deal!

Fredericksburg Texas Property For Sale