This chart shows the history of the Fredericksburg TX real Estate Market report average home price with home values and median price per foot for in the City Limits.

Total Sales  Land Sales Tax Receipts  Population Projection

Average home prices and house values for Fredericksburg TX

Note: Short term rental sales will no longer be included in the average home sales data beginning in 2023.

Average Short Term Rental Prices for Fredericksburg TX

Residential sales in the Fredericksburg City Limits For the third-quarter 2024 we sold $21,334,035. In 2023 third-quarter we sold $29,953,716. So that’s down 28.78%. And if we look at year to date sales, so from Jan 1 to sept 30 in 2024 we have sold $62,114,440 compared to the first 3/4 of 2023 where we sold $76,067,916 so in town residential sells account for about 15 million of the shortfall in the total sales for the county so far this year. And of course the old rule of supply and demand always has an effect so we have actually seen a little softening in prices for in town homes. For the first 3 quarters of this year we are currently at an average home price of $526,394 compare to the same time period in 2023 when the average price was $580,671 so thats a pretty big drop of 9.34% but before that number scares you we need to talk into account the average home size this was a little small than last years average and a big house sales for more than a small house. so the better metric here is to look at the price per foot from year to year . So this year we are at an average price per foot of $272.57 compare to the average price per foot at the end of 2023 of 284.24 , that’s a decrease of 2.69% … so its down but nothing too drastic and even some of that can be attributed to the new Lenar an DR Horton projects

Then if watch this regularly you know that this year I am now tracking STRs separate from residential sales. And you might be surprised that the STR market is still in high demand by buyers altoguh you may think exactly the opposite is true because we have a very high inventory of Strs on the market right now. The explanation here is that our traditional STR buyer was always someone you wants to own a house here that they can stay at and enjoy when they are in town and then rent out when they are not here to help pay the bills, and these buyers are still coming and buying. But all the folks back in 21 and 22 who thought they would get rich in the str businesses are realizing it does not work that way. So the folks who really aren’t making enough money to make it worth it or some not even enough to cover their payments are trying to get out so we just have a lot for sale . But so far this year we have sold 47 STRs in the city limits and last year in the first 3 quarter we had only sold 35 so YTD we are up 34.28 % in the number of units that have traded hands. But again that supply and demand rule continues to work , this year the average STR price is $446.28 per foot which is down 5.35% from 2023 when we ended at $471.68 per foot. And I expect to to see the average price to continue to drop a little as some of the marginal rentals that really are not making any money continue to be sold at a discount with a fair number of these just going back int the single family use. But the successful STRs and you know the cute older homes near main street still continue to demand a premium.

 

 

 

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