There are an increasing number of signs that the real estate market in Fredericksburg Texas has cooled quite noticeably. Reading previous posts show some key statistic as evidence of this claim and any cursory exposure to the national financial media bears this out as well. While not all is doom and gloom and I by no means think our market fundamentals have changed, things are likely to get a little worse before they get better.
Yet another sign is the surprisingly poor performance (out of the gate) of the newest phase of Fredericksburg’s popular Stone Ridge neighborhood. Using the last three phases as indicators, Phase VII could easily have expected to see the sale of up to 65% of the 34 available lots within the first few hours of their release. MLS stats (as of 8/30/07) show that only 6 lots (17.5%) have accepted offers in place.
The softness of the market and credit terms available to spec builders has clearly affected what should have been a routine “home run”.
If you are a buyer or seller of Fredericksburg real estate, you’d be wise to note the trends in categories like “days on market”, “list price to sale price ratio”, “price reduction velocity” and the all-important “overall supply”. Each of these figures is important to know when setting your expectations.
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