BIDDING WARS? An Emerging Real Estate Market Unbeatable Encounter
“For over 69 years Davis Real Estate has been delivering unparalleled real estate services to the Rio Grande Valley. Residential, Commercial, or agriculture, the Davis Company has been an admired company throughout the Valley. Our motto says it all, "We Deal in Real Estate, But Our Real Business Is People". We hold all our colleagues in the Valley's real estate industry in the highest esteem and among them none other than Lee Jinks, Association Executive of the Greater McAllen Association of Realtors who is responsible for the following statistical insights into the state of the market we service.”
Flo Lasater, Managing Broker – Davis Real Estate
Impressive Inventory
Everyone has heard the three most important things in real estate, LOCATION3. There is no national real estate market. Real estate is local. So when you ask, “What’s the average sales price of a home?” you must also provide a time frame and an area, in order to get the information you seek. The most common question, “How’s the real estate market?” might be an easier question to answer… if you know your history, because this question is relative.
Photos by: Omar Landeros
How is the real estate market? Having told you real estate is local, I’ll start with the state numbers first for comparison sake. Numbers of homes sold has steadily increased since 1982, until the national down turn in 2007. Texas saw a decrease, but began the recovery in 2010 and is now near the historic high in numbers of homes sold. Average sales price has also continued to increase to its current historic high of $184,400. But the one factor that may better describe the condition of the market than any other single measure is months of inventory. It’s a simple calculation that indicates how long it would take to sell the current inventory of listed homes if no new homes were added. It is generally understood that 6-months inventory is a balanced market. More than 6-months is a buyer’s market and less than 6-months is a seller’s market. Texas as a whole has been below 6-months inventory since January 2012 with today’s number being 3.5 and the greatest numbers of homes selling in the $200,000 range.