Plum Creek Neighborhood
January 2018 Edition
Hello Plum Creek Neighbors!
So often local real estate professionals provide their clientele with updates about the real estate market using broad strokes that encompass market data of the entire Austin Metro area, Hays County, or the City of Kyle.
However, as the saying goes, real estate is all about location, location, location! Which means that home values and markets will differ by neighborhood, by street and even by the size of home.
That is why it is more important that you receive micro-level market details instead of the typical real estate data that you can easily find in a Google search.
Below you will find my market research that I’ve compiled, calculated and analyzed for you so that you can have the kind of useful and relevant information that is most beneficial to you.
As a fellow neighbor and committed advocate for our community in Plum Creek, it is very important to me that I share this important information with you. So that is why I plan to create a new Market Update every month for our neighborhood. If you are interested in receiving the following information on a monthly basis you can sign up at the very bottom of this page. I hope you enjoy!
In case you don’t have the time to read this full update…
I’ve included this handy info-graphic to help you get a quick detailed glimpse into how the Plum Creek real estate market is performing.
Download the PDF version of the Plum Creek Market Update Brochure
It was yet another record-breaking year for the Austin-Round Rock Metropolitan Statistical Area (MSA) according to the December and year-end 2017 Central Texas Housing Market Report that was just released by the Austin Board of REALTORS® (ABOR). With an increase in home prices of 5.4 percent and homes sales reaching an all-time high of 30,059, an increase of 2.4 percent compared to 2016, The Austin-Round Rock MSA is now the 31st largest metropolitan area in the U.S.. Despite 2017 being a record breaking year for Central Texas, the rate of growth has decreased which indicates that the market is normalizing and returning to a more balanced market. It would be interesting to know how Plum Creek compares and if our neighborhood follows the same record-breaking narrative of the Austin market. Let’s find out!
Single-Family Home Sales
The number of single-family home sales in Plum Creek increased from 7 sales in December 2016 to 8 sales and had an increase in sales dollar volume of 36.5 percent in December 2017. During the same time period, the City of Kyle’s single-family home sales increased by 1.3 percent and Hays County sales increased by 9.6 percent, thus giving the county a big boost of 22 percent in sales dollar volume. However, the 2017 year-end total sales show a different picture when we compare sales totals of Hays County, Kyle, TX., and Plum Creek. Annually, Hays County sales increased 4.8 percent while Kyle, TX sales declined 3.3 percent and Plum Creek ended the year with 131 home sales a significant decline of 14.4 percent, which is why the year-end total sales dollar volume also decreased by 11.5 percent.
Plum Creek beat the $229,483 average sales price of Kyle, TX when the neighborhoods’ average sales price grew by 19.4 percent from $198,043 in December 2016 to $236,550 in December 2017.
Months of Inventory
Because Months of Inventory is often misunderstood, I’m going to provide a brief explanation of what Months of Inventory is before I dive into the numbers and explain how it helps us understand the current state of our real estate market:
According to the Real Estate Center at Texas A&M University, months of inventory measures “the current supply of homes offered for sale relative to the number of homes being purchased. The result indicates the number of months it would take to sell all properties currently for sale at the average monthly sales pace” which is also known as the absorption rate. According to research conducted by the Real Estate Center at Texas A&M University, a balanced real estate market in Texas is considered to be around 6 to 6.5 months. This benchmark for a balanced market represents that housing prices are stable and are influenced more by inflation rather than supply and demand. Months of inventory below this benchmark indicate a seller’s market (strong market) and months of inventory above this benchmark indicate a buyers market (down market).
Now to illustrate, the current months of inventory for the City of Kyle and for Plum Creek, which happen to be the same, is at 1.8 months of inventory. Which indicates that both areas are considered to be in a strong sellers market. Likewise, Hays County has 2.4 months of inventory, which indicates there is a strong demand for homes in Hays County as well.
In December 2017, single-family homes that sold in Plum Creek were on the market an average of 63 days which is better than the 81 days on market of sold listings in Hays County. Plum Creek homes spent an average of 35 more days on the market compared to December of last year when the average days on market was 28 days. The average days on market for every home that was or is currently available for sale in Plum Creek, is currently around 81 days. Plum Creek had just 1 less new listings compared to last December. At the same time, Hays County also saw a decrease of 8.9 percent in the number of new listings on the market.
The Bottom Line
Plum Creek is still the #1 selling neighborhood in Kyle, TX. despite the 14.4 percent decrease in the number of sales in 2017. The decline in sales isn’t necessarily just for Plum Creek but for the City of Kyle as well which had a 3.3 percent decline in home sales. Something interesting to keep an eye on is that while sales in Kyle declined, the surrounding cities of Buda and San Marcos both experienced gains in the number of home sold this past year.
The increase in the number of active days on market, the decline in total sales for the year, and with the months of inventory indicating an increasing sellers market in the last 3 months – these are all signs that show that there is still demand for Plum Creek homes but buyers aren’t as motivated to pull the trigger on buying a home as before. In my opinion that is due to the number of new homes that are being built in neighborhoods around Plum Creek while the new home build options in Plum Creek offer a more limited selection of homes as the final lots in the neighborhood are sold.
The Austin Board of REALTORS® also provides market statistics for all of the surrounding zip-codes. You can view that information HERE.
So there you have it! I hope you enjoyed this edition of the Plum Creek Neighborhood Market Update. If you have any questions about how the current market effects your homes value or chances of purchasing your dream home in Plum Creek, please call me or click the links below.