The State of Galveston Island Real Estate - 2011

This is a look back at several segments of sales and listings on Galveston Island for two 3 month periods over the last 12 months. 

GALVESTON IN TOWN NEIGHBORHOOD

This table shows sold single family homes in the Galveston In Town Neighborhood for the 3 months ending 1/31/2010.  I have highlighted the Median sold price of $120,000. 

This table shows sold single family homes in the Galveston In Town Neighborhood for the 3 months ending 1/31/2011.  I have highlighted the Median sold price of $94,900, indicating a decline in prices of 21% for this 12 month period. 

 The declines are due to the poor economy and rising unemployment, especially due to the offshore drilling moratorium.  The offshore drilling moratorium has been lifted however drilling permits are still not being issued in quanties to support the industry and layoff's as a result are inevitable.  Less jobs, less home sales.

The number of homes listed 12 months ago was 147 for a median list price of $138,000 as compared to 111 homes listed in the most recent 3 months with a median list price of $149,000.  This increase in median list price is likely due to a number of hurricane rehabbed homes coming on the market and listing for more than they otherwise would have.  The drop in the number of listings is likely due to sellers holding on, waiting for the market to recover before putting their home on the market.

This look-back realistically shows the statistics of the market place as it was 3-6 months ago.  As a Realtor deeply involved in the real estate market on the island, I am seeing a change in the market for the better with an increase in buyer calls and seller inquiries.  This isn't anything I can quantify yet and I hope it isn't just my eternal optimism coming through.  Only time will tell, but I sense a change coming and the next set of statistics supports my optimism.
 

GALVESTON WEST END BEACH AND BAY

This table shows sold single family homes in the Galveston West End Neighborhood for the 3 months ending 1/31/2010.  I have highlighted the Median sold price of $212,000. 

This table shows sold single family homes in the Galveston West End Neighborhood for the 3 months ending 1/31/2011.  I have highlighted the Median sold price of $246,000, indicating an increase in prices of 14% for this 12 month period. 

 The west end of Galveston Island includes mostly beach and bay resort/second homes and this market is definitely showing signs of improvement.  The number of homes listed 12 months ago was 113 for a median list price of $299,000 as compared to 121 homes listed in the most recent 3 months with a median list price of $310,000.  This represents a 4% increase in prices and a 7% increase in the number of homes listed over last year.

I think this is an indicator of the direction of the market for this year.  Along the same lines, the investor market is also showing signs of improvement.  The Multifamily median sold price has increased 20% year over year for the same 3 month period ending 1/31/2011 to $71,000 from $56,250 for the same period a year ago.

Overall I see a crack in the dark wall of the recession and I expect to see a gradual recovery in our island real estate over the coming months!