Member Ashton Gustafson gives a summary to the NTHBA about the economics of the housing industry in Wichita Falls through 2016
Ashton Gustafson Broker and partner of Bishop Realtor Group was the guest speaker for the North Texas Home Builders Association at the November 3rd general membership meeting. With his knowledge and experience in the Wichita Falls housing and commercial development market he graciously volunteered his time to speak to the NTHBA group and explain what is happening in the construction industry from the sales standpoint. Using figures from the year 2000 as a starting point and going through 2016, the best year for home sales was 2006, with 2060 sales.
As the depression began home sales gradually declined from 2006 and bottomed out to 1275 sales in 2011. Since 2011 there has been a slow but steady increase of sales with 2016 seeing 1764 sales. Although the exact numbers are not available yet, Ashton said 2017 looks like it is in line to have a slight increase over 2016.
There is a lot of criteria that make up the statistics that are important when it comes to home sales. Days on the market is an important number when decisions are being made about both buying and listing a home. 2016 proved to be a better year for sales with a shorter days on the market average. In 2015 the average days on the market was 82 days, in 2016 it was 74.
Price range is another factor. In 2016, 29% of the homes sold were priced between $50,000 and $99,000. This indicates the majority were existing home sales. Homes that were priced between $100,000 and $119,000 made up 10 % of the sales, $120,000 – $149,999 made up 15%, $150,000 – $199,999 made up 16% and $200,000 – $299,000 made up 13% of the sales. Prices that ranged between $300,000 and $500,000 made up less than 3% of the sales and $500,000 and up 0%.
The year a home was built is another gage that determines the sale of a home. 52% of the homes sold at prices between $200,000 and $300,000 were built after the year 2000 and 50% of all homes priced between $300,000 and $500,000 were built after 2000. Ashton mentioned the 2000 may not seem like a newer home to most but in the real estate market it is still considered a newer home.
Another item that could influence home sales, especially in good ole Texas, is a pool. Homes build after the year 2000 that had a pool were on the market for only an average of 31 days.
The type of buyer you have will make a difference in home sales. 18% (137) of the homes sold in 2016 that were priced under $100,000 were foreclosures while 1.5% priced over $100,000 were foreclosures. These homes are usually bought by investors and remodeled to resale or use as rental properties. Since the depression began, rental properties sky rocketed from almost 200 rental homes to over 900 with rentals peaking in 2013. We are now starting to see rental properties declining. A lot of buyers could not afford to sale their homes after the depression began as well as it being a time Wichita Falls was seeing a severe drought.
Location is another key factor in home sales. There were 167 homes near SAFB that sold. Of those homes, only 2 sold for over $200,000. 102 or 61% of those homes sold for less than $100,000. 92% of the homes sold between $150,000 and $200,000 were built after 1990. 175 homes in this area were rented.
Ashton went said there were 27 commercial sales in 2016 that which resulted in $7,947,396 in total volume. The average days on the market were 131 days and the highest sales price recorded was $1,400,000. 62% of these commercial sales were under $200,000.
There was only 3 commercial land sales in 2016. The average price per acre was $120,110. The average per foot was $2.75 while the average days on the market was 898.
Many people continue to move to the country. There were 39 farm and ranch sales with the average stretch of acreage bought was 296 acres. The average price per acre was $1733.00 per acre but sold from $700 up to $3853 with an average of 70 days on the market.
Note: these numbers are based on information that is reported in house or through the Wichita Falls Association of Realtors. Builders and individual’s sales information may not be available or recorded in a way it can be used.
In conclusion, Ashton reiterated comments many have been hearing over the past few years from the Wichita Falls Chamber of Commerce, the Economic Development Committee and the City of Wichita Falls, growth will happen when you give them a reason to want to come to your area. The entities above along with the interest of the community are making these things happen.
Overall, Wichita Falls continues to see the housing industry bounce back.
Thank you Ashton for speaking to the North Texas Home Builders Association and bringing us this wonderful information.