David Companik, Realtor® | Blog


Madison County Market Update

Below is my original article that appeared in the September 8th, 2010 edition of the Madisonville Meteor newspaper.

Madison County Market Update

by David Companik, Realtor®

As a real estate agent, I find myself inundated by “real estate updates” about the national and statewide markets: US home prices, Texas median prices, Houston residential sales, etc. While this information helps me assess the overall health of real estate sales in America, it does not address the questions my clients ask about the market in Madisonville. I’d like to answer some of those questions and bring you up to date on Madison County real estate trends.

When judging the level of Buyer demand in a particular real estate market, it is important to know the median price of recent sales. Median sales price is the value at which half of the properties sold for less and the other half for more. At the median price of your market, you will generally find average quality properties listed at affordable prices – and more qualified Buyers calling to make appointments!

As a member of the Houston Association of Realtors® (HAR), I have access to property sales information on the HAR MLS (Multiple Listing Service) website. While this data does not include sales “by owner” and by listing agents who are not members of HAR, the majority of our county sales are listed on the HAR website, and it provides a good overview of pricing trends. So let’s ask the question: With the US economy in a recession since 2008, how have median sales prices changed in Madison County?

Single Family Homes” in Madison County: Homes located on land ranging in size from a city lot up to 10 acres.

2007 Sales: Median price was $97,000. The nationwide downturn in home values began in 2007.

2008 Sales: Median price fell -9.79% to $87,500.

2009 Sales: Median price fell -9.71% to $79,000.

2010 Sales (January1st – August 31st): Median price fell -12.65% to $69,000.

From 2007 to August 2010, the median price of residential sales has fallen -28.86% (or $28,000). During this period, prices have been increasingly impacted by a growing availability of low-priced foreclosure properties. Tougher mortgage lending standards and weak national employment levels have also contributed to the downward pressure on our median sales price.

Acreage” in Madison County: Non-homesite properties 10 acres and larger. I will define the values on a “per acre” basis.

2007 Sales: Median price was $3,095/ac.

2008 Sales: Median price rose 29.75% to $4,016/ac.

2009 Sales: Median price fell -12.87% to $3,499/ac.

2010 Sales (January1st – August 31st): Median price rose 2.88% to $3,600/ac.

A more stable pricing trend can be seen in acreage sales: from 2007 to August 2010, the median sales price of acreage has risen 16.31% (or $505/ac.). I have heard a common theme from investors, retirees, and weekend-property buyers: they want to invest in a piece of Texas land that won’t disappear in a puff of stock market smoke. In today’s climate of economic uncertainty, this sentiment is shared by many!

So there are the numbers. They don’t tell us what is coming next, but they do go a long way toward helping us understand the state of change and transition our market is in. If you have questions about this article or real estate in our area, please call me at (936)349-7075. You can also visit my website – www.davidcrealestate.com – for blog posts, news, and resources related to rural Texas real estate.

© 2010 by David Companik. All rights reserved

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