Fort Hood, located in Central Texas, is known as the largest US-Military base on the planet and is home to two divisions. The real estate market in the surrounding cities of Killeen, Harker Heights and Copperas Cove remains stable amid the national housing crisis.
Fort Hood Area Real Estate in Numbers*:
Single Family Home sales* in the three cities of Killeen, Harker Heights and Copperas Cove for 2006 were at 3,078 with an average sold price of $118,009 (list price: $118,939)
Reviewing the housing market for 2007, the unit count* was 2,781 and the average sold price was $124,031 (list price: $125,269). There were fewer home sales* in 2007 than the year before, but prices still increased 5.1% for this sector around Fort Hood.
Between Jan 1st and June 31st 2008, 1,366 homes sold* at an average price of $126,932 (list price: $128,514). That is a price increase of 2.3% by the end of the second quarter. The numbers support an article published in Sept 2007 by CNN Money, where Killeen, TX was mentioned as the second most affordable housing market in the United States – forecasting an appreciation of 4.6% until the end of 2009.
In 2007, properties sold* for 99.01% of the asking price. This very thin margin between sales price and list price can also be an indicator for a stable real estate market, provided that the vast majority of the time, home owners and real estate professionals listed properties according to solid sold data.
(* Local Fort Hood Association of Realtors MLS Data for Single Family Homes and Single Family Homes with Acreage for Killeen, Harker Heights and Copperas Cove)
Texas’ Median Home Price in Contrast to the National Market:
Texas’ Residential Real Estate Market has shown slow and steady price appreciation over the last two decades at an annual average of 4.4%, without any periods of depreciation. This can be linked to very low home prices – compared to the national average.
The National Association of Realtors has reported a decline of the national median home price in 2007 for the first time since their data tracking began in the 1960s. In contrast to that, the Texas’ median home price rose at 3.1%.
Texas Market Outlook in Comparison:
One of the ways to project future real estate markets is to analyze trends.
Let’s take the national housing market as an example. The real estate bubble, which developed starting in 2002, was outside the 2001 trend that is in line with steady growth since 1990. With that in mind, the U.S. median home price could continue to fall or stay at around $200,000 until it could pick up stable growth again in 2010, because it still hovers above the relatively moderate 2001 appreciation trend.
The Texas housing market experienced in 2007 a decline in growth (in units sold), but values remained to appreciate despite the fact that U.S. median home prices were falling. Texas does not have to deal with the consequences of a price bubble unlike the national housing market because the trend of an average annual appreciation of 4.4 percent since 1990 did not significantly change during the 2004-2006 period, during which other markets sky-rocketed.
Following the trend of 2007, in which the statewide median home price was at $147,500, it could reach $159,000 by 2010, if the core trend of increase continues.
Bottom Line: The Texas Housing Market remains a lot stronger than the national market and continues to be a target for real estate investors.
Sources: Fort Hood Association of Realtors MLS, Real Estate Center of Texas A&M University, National Association of Realtors
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