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Prices rise, sales lag

Tight inventory causes cost jump

SELLING QUICK – The first phase of lots in Estates of Bison Creek off U.S. 380 in Decatur are all sold. The second phase of 23 lots recently opened and nine lots are already under contract or sold. Messenger photo by Austin Jackson


Real estate prices soared but sales lagged in Wise County in August.

The number of homes sold slipped to 91, a 7.1 percent drop from August 2020 when 99 sold. In August 2019, 109 homes were sold in the usually hot month for real estate. Sales were also down 11 from July.

The median price did increase to $339,500, a 37.3 percent hike from last August. It was up from July’s median price of $334,000.

“These numbers are definitely a result of low supply and high demand. Multiple offers on a property will drive the price up quite a bit,” said Tori Wilson, president of the Greater Denton Wise County Association of Realtors.

Randy Parker, owner of Parker Properties, added: ”

Of the homes sold in August, 34.8 percent were between $200,000 and $299,999. Another 19.1 percent was between $300,000 and $399,999 and 20.2 percent between $400,000 and $499,999.

“A short supply in the ‘starter’ homes gives us fewer sales and higher prices on the homes that have sold,” said Randy Parker, owner of Parker Properties. “We are also seeing brisk sales in small, two- to six-acre, to medium, seven- to 15-acre, sized vacant tracts of land in Wise and Montague Counties.”

A lack of inventory continues to impact the market. The months of inventory remained at 1.6 months for a second straight month. The figure represents how long it would take to deplete inventory, assuming no new inventory is put on the market. It is down from the 3.3 months in August 2020.

There are 162 current listings, a 40.2 percent drop from last August’s 271.

Homes are staying on the market just 27 days and closing in 39.

RATES REMAIN LOW

Messenger photo by Austin Jackson

Mortgage rates remain low. According to the Sept. 16 release from Freddie Mac, the average 30-year fixed rate was at 2.86 percent. The rate is up slightly after hitting a six-month low of 2.77 percent in early August.

The rates are expected to remain steady.

“It’s Groundhog Day for mortgage rates, as they have remained virtually flat for over two months. The holding pattern in rates reflects the markets’ view that the prospects for the economy have dimmed somewhat due to the rebound in new COVID cases. While our collective attention is on the pandemic, fundamental changes in the economy are occurring, such as increased migration, the extended continuation of remote work, increased use of automation, and the focus on a more energy efficient and resilient economy. These factors will likely lead to significant investment and new post-pandemic economic models that will spur economic growth,” said the Freddie Mac press release.

CONSTRUCTION UPDATE

Several housing projects in the county are underway.

Near Rhome, PMB Capital’s Reunion, formerly Rolling V Ranch, continues with excavation and infrastructure work. Peter Pincoffs of PMB said the phase 1 on the east side of Farm Road 3433 with 330 lots is still on schedule for a fall 2022 completion with the first homes expected to be under construction late next year. The entire development is estimated to have 10,000 homes.

Off Pioneer Road in New Fairview, construction of several homes in the second phase of Fairview Meadows is underway. The second and third phases will add 185 homes to the current 115.

All the lots in the phase 1 of the Estates of Bison Creek in Decatur have been sold. The second phase which will have 23 lots just opened and nine properties are sold or under contract. Bison Creek Homes’ Paradise Crossing on County Road 3451 has only two lots available among the 15 in phase 1 of the development.

PLAT SUBMITTALS

Wise County commissioners accepted the infrastructure improvements of Walnut Grove Estates’ Phase 1-B Monday. The development is off Proctor Lane near Decatur.

Commissioners did not take action on the construction plans for Tres Vista, Phase 2 off Farm Road 2264.

Twelve plat applications are currently under review by Wise County Public Works, according to the county website.

The pending plats are – Authors Corner on Sunflower Road, CP Smith Addition on County Road 1370, Garvin Hills on County Road 4599, Juniper Estates Phase 2 on Old Decatur Road and Farm Road 730 North, Kayasack Estates on County Road 2825, Pecan Ridge Addition on County Road 1596, Prairie Vista Estates Phase 2 on Farm Road 51 at County Road 4699, Robles Estates on County Road 1180, Iron Cactus on Farm Road 455, Thomas Estates at County Road 3657 and Private Road 3630, Treva Estates on Farm Road 730 at County Road 2845 and Willow Way Addition on County Road 4522.

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