Fredericksburg TX Real Estate Market Report Average Home Price Including

Home Values & Median Price Per Foot in City Limits

Total Sales  Land Sales Tax Receipts  Population Projection

Average Home and House Values (including short term rental) for Fredericksburg TX

Average Home Prices and House Values for Fredericksburg TX
(Short term rental sales no longer included in the average home sales data beginning 2023)

Average Short Term Rental Prices for Fredericksburg TX

For 2024 we sold a total of $89,524,052 worth of homes in the city limits compared to 2023 where we sold $92,145,599 so again we see a slight line of 2.84% from the previous year. With total number of individual homes sold being 160 homes in 2024 and 165 homes in 2023 so again modest difference of 3.03%. Now in town home sells have probably been one of the most sluggish segments of our market, which has resulted in a slight decrease in prices. First if we just talk about the average Home price 2023 we ended at $558,458 and 2024 ended at $559,525 so a very slight bump up of .019% but if you listen to this very often you know, I consider the price per foot a better metric than the total price simply because all homes are not the same size and bigger homes tend to dell for a higher total price than small homes . So when we look at the price per foot in 2023 we ended at $282.92 per foot and for 2024 we ended at $274.32 per foot for a house in Fredericksburg, that is a 2.83% decrease in the average price of a home in Fredericksburg city limits. So nothing shocking, a little bit of a dip but we also have a couple new large developers in town who are creating a increase in inventory with a pretty low price per foot which helped bring that price down just a little. And I really think we’ve bottomed out and that we will be seeing the home prices in Fredericksburg start ticking upwards again in 2025.

Short tern Rentals.. As I’ve mentioned several times throughout the past coupe years, the short term rental market went nuts back in 21 and 22 and now people are realizing that they are not necessarily the cash cow. They thought they were. Lots of folks are looking to get out of the Short terminal business because the cap rate just isn’t that great unless you have a really cool and unique property. Looking at the data for 2024 we sold 54 individual units for total of $36,016,525 and in 2023 we sold 46 individual properties for $39,443,950. So we sold eight more individual units this year, but we are $3mil less in total dollar sales than last year which tells me what is happening on a lot of these are the successful STR units are being held onto and a lot of what’s being sold are units that are not real renting super well… and you can see this in the average price of an STR as well/ For 2023 the average short term rental resale value was $857,477 and for 2024 the average short term rentals sell is $666,973. Again, you have to take into account. Some of the STRs may have been bigger than the others so looking at the price per square foot is a better barometer than the average price just like on single-family residential homes. At the end of 2023 the average price per foot for a short torn rental in the Fredericksburg city limits was $471.68 a foot, the end of 2024 the average price per foot ended at $442.19 that a drop 6.15%. Another factor in this is from what I hear from my friends in the short term rental management business 2024 was just not a great year across-the-board for short term rentals and Gillespie County. So I think for 2025 we may see even a little bit more of a decrease in the average price per foot for short term rentals as more of the less profitable ones get sold back into the single-family real estate market. But keep in mind even at the reduced $442 a square foot that still almost 40% higher than the single-family residential house right next door has been bringing. So there is definitely still buyer demand for the short term rentals in Fredericksburg. and for the traditional buyer who likes coming to Fredericksburg regularly and can afford a second home that they rent out when they are not here , it’s still a great long term investment.

 

Call, email (mike@mikestarks.com) or text me for any questions.