The Princeton, Texas real estate market in 2019 displayed balanced growth and stability amid evolving buyer preferences and fluctuating economic conditions. This analysis identifies trends, highlights notable data, and examines key market dynamics, providing a comprehensive look at Princeton’s housing activity over the year.

Total Homes Closed

• Closed transactions: The market closed 514 homes, showing steady activity with only a minor decline from 2018’s 525.
• New construction homes: Sales reached 275 homes, increasing from 264 in 2018, underscoring strong development efforts.
• Homes with pools: Dip in sales to 7 homes from 10 properties in 2018, reflecting a downward trend in luxury pool homes.

Property Pricing Insights

The market displayed slight price adjustments compared to 2018:

• Minimum price: Fell significantly from $72,000 to $40,000, introducing more affordable options.
• Maximum price: Incrementally increased from $599,000 to $600,000, driven by a luxury property at the upper end.
• Average price: Rose marginally by 0.6%, from $233,494 to $234,809, maintaining steady pricing levels.
• Median price: Decreased slightly to $227,900, down from $228,900, signaling stabilization in the mid-market.

Property Size and Features

Princeton’s homes catered to varied preferences with consistent property features:

• Bedrooms: Average of 4 bedrooms, consistent with 2018.
• Bathrooms: Average of 2 bathrooms, unchanged from the prior year.
• Square footage: Average size declined modestly to 1,867 sqft, down from 1,897 sqft in 2018.
• Lot sizes: Averaged 0.304 acres, smaller than 2018’s 0.377 acres, reflecting more compact real estate options.

Market Dynamics

The market shifted slightly in terms of efficiency and value:

• Days on Market (DOM): Homes averaged 38 days, up from 30 days in 2018, indicating slower turnover.
• ClsPr/LstPr Ratio: Remained steady at 98.84%, a minor improvement from 98.79%.
• ClsPr/OLP Ratio: Rose to 99.13%, improving from 97.81%, showing better alignment of closing and original prices.
• Average price per sqft: Increased to $128.40, up from 2018’s $125.24, reflecting a 2.5% growth in property value per unit space.

Economic context

Average Electricity Costs in Dallas-Fort Worth in 2019

The average electricity price in 2019 climbed to $0.14 per kilowatt-hour, up from $0.13 in 2018. This uptick added some pressure on household budgets, further solidifying the need for energy-efficient homes. Properties featuring solar panels or smart home technologies likely gained value as homebuyers sought ways to mitigate rising energy expenses.

Average Price for Regular Gasoline in Texas in 2019

Gas prices fell slightly to $2.29 per gallon in 2019, down from $2.44 in 2018. This small decline brought modest relief to transportation costs and may have encouraged suburban home purchases, where commuting distances tend to be longer. Homebuyers likely balanced fuel costs with home prices when making location decisions.

Average 30-Year Fixed Mortgage Rate in 2019

Mortgage rates averaged 4.13% in 2019, down from 4.70% the year before. This noticeable decline made homeownership more attainable for many homebuyers and likely spurred activity in the housing market. Pre-approvals through local mortgage loan originators remained key for buyers wanting to confidently pursue homes amid favorable rate conditions.

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Summary of Real Estate Market Analysis for Princeton, TX in 2019

The 2019 real estate market in Princeton, Texas presented a balanced landscape with opportunities and challenges for both homebuyers and home-sellers.

Homebuyers’ Perspective

For homebuyers, 2019 was a year of increased affordability and opportunity. With the minimum home price dropping to $40,000, entry-level buyers found it easier to enter the market. The surge in new construction homes (275 properties) offered modern design and updated features, appealing to those seeking move-in-ready options. Additionally, lower mortgage rates (4.13%) boosted affordability by reducing monthly payments, making homeownership more attainable.

Buyers also had room to negotiate, particularly on properties with longer Days on Market (38 days) compared to the previous year. This added time allowed buyers to carefully evaluate options and secure favorable deals, especially on higher-priced or luxury homes.

Home-Sellers’ Perspective

Home-sellers faced increased competition and evolving buyer preferences, requiring strategic adjustments to ensure success. The slight rise in DOM meant it was crucial to price homes competitively from the start. Accurate and realistic pricing aligned with market expectations could lead to quicker closings and fewer adjustments throughout the sales process. However, the improved ClsPr/LstPr (98.84%) and ClsPr/OLP (99.13%) ratios showed that buyers were willing to meet listing prices for well-positioned properties.

New construction homes proved to dominate, reflecting continued demand for updated amenities and turnkey homes. Sellers of older properties might benefit from minor upgrades to match these buyer preferences. Additionally, while pool homes saw a decline in sales to just 7 properties, luxury homes—like the $600,000 standout sale—demonstrated demand for premium features such as larger living areas, pools, and expansive lots. Sellers in this segment should prepare for longer timelines but know that buyers are still willing to pay for the right property.

The Importance of Statistical Data in Princeton, Texas Real Estate Market

Did you know that appraisers and Realtors rely on historical statistical data to determine a property’s current value?

Analyzing historical market data is essential for making informed decisions in today’s real estate market. Examining past trends provides valuable insights that facilitate accurate pricing, more strategic negotiations, and a comprehensive understanding of market dynamics. By understanding market dynamics, both homebuyers and home-sellers can leverage the conditions to achieve their goals.

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A Comprehensive Analysis of Single-Family Residential Housing Market in Princeton, TX: 2003 to Present