The Kerrville Real Estate Market Faring Much Like Wall Street

The Kerrville Real Estate Market Faring Much Like Wall Street

March 4th, 2009 categories: Assessing the Local Market

On Monday, the Dow Jones industrial average fell to 6,763 — the lowest close for the Dow since April, 1997. The 300-point drop Monday leaves the index more than 52 percent below its record high of 14,164.53 set in October 2007.

The Texas Hill Country real estate market, while still doing better than the national market, is experiencing a similar decline as that of Wall Street.  Kerrville, Texas Real Estate Sales in January & February 2009 totaled just $7.67 million, equivalent to just 46.7% of  last year’s sales.

It is commonly understood that in an unstable environment, “Big Ticket Items” get hit the worste.  People delay purchases … especially big ones until they feel more certain about the future. Real Estate certainly is one of the “Big Ticket Items” that is suffering in the current economic environment.

What will it take to create a more certain future?  I imagine just time.  In our opinion, the real estate market, like the stock  market, was due a “correction.”  People get caught up in the frenzy and make unwise decisions … not based on fundamentals.  The good side to a correction is people start making sensible decisions about how they spend their money. And, the ones that don’t OVERREACT can seize opportunities.  When the market is down, deals can be found more easily!

The good news is that, historically, real estate has been one of the best places to invest money in uncertain times.  Real estate is a “real” asset … meaning it is a tangible, real asset … It can’t be taken away … It’s not just on paper!

We believe that it is time for many who have lost money in the stock market to consider investing in real estate.

The Texas Hill Country is still one of the best places in the country to invest.  Tourism and retail sales are still strong.

Our encouragement to you is:  Live fully and yet wisely!  And keep the long term perspective!

We’d love to help you find your Hill Country dream home! Give us a call at 830-995-2511.