The 2016 real estate market in Princeton, Texas demonstrated remarkable growth in sales volume and efficiency, fueled by favorable economic conditions and robust buyer demand. This analysis summarizes closed transactions, pricing trends, property features, and market dynamics, offering key insights into the evolving landscape.

Total Homes Closed

• Closed transactions: 351 homes sold, a substantial 67.9% increase from 2015, reflecting an overwhelmingly active market.
• New construction homes: 136 homes sold, a sharp rise from 15 the previous year, showcasing a boom in development activity.
• Homes with pools: 12 homes sold, up from 9 in 2015, highlighting steady demand for luxury features.

Property Pricing Insights

The following price metrics reflect growing market value and diversity:

• Minimum price: Increased from $38,000 in 2015 to $65,000, signaling improvements in the entry-level segment.
• Maximum price: Jumped from $407,500 in 2015 to $559,700, reflecting expanding high-end market activity.
• Average price: Rose to $199,966, up by 19.2% from $167,775 in 2015.
• Median price: Increased to $194,000, marking a 19.0% growth from $163,000 in 2015.

Property Size and Features

HomeBuyers had access to a range of home sizes and configurations in 2016.

• Bedrooms: Averaged 4 bedrooms, up from 3 in the previous year.
• Bathrooms: Increased to an average of 2 bathrooms, with homes offering up to 5 bathrooms.
• Square footage: Properties ranged from 768 sqft to 4,849 sqft, with an average of 1,882 sqft, slightly larger than the previous year.
• Lot sizes: Averaged a reduced 0.470 acres, down from 0.682 in 2015, reflecting denser development in new construction.

Market Dynamics

The market showcased impressive gains in efficiency and property value retention.

• Days on Market (DOM): Faster closings, averaging 20 days, down from 36 in 2015.
• ClsPr/LstPr Ratio: Improved to 99.53%, up slightly from 98.72%, reflecting continued tight pricing alignments.
• ClsPr/OLP Ratio: Dropped to 98.90%, indicating a decrease in over-list bids compared to the previous year’s 144.99%.
• Average price per sqft: Climbed to $107.59, representing a strong 17.4% increase from $91.65 in 2015.

Economic context

Average Electricity Costs in Dallas-Fort Worth in 2016

Electricity prices continued to decrease, settling at $0.11 per kilowatt-hour in 2016, down from $0.12 in 2015. This steady decline further incentivized interest in larger homes, which naturally consume more power. The trend also nudged developers to prioritize energy efficiency in new housing projects.

Average Price for Regular Gasoline in Texas in 2016

Gas prices dropped further to $1.91 per gallon in 2016, down from $2.17 in 2015. This decline reduced commuter expenses, inspiring homebuyers to explore housing options further from city centers. Properties in areas with good road infrastructure likely became more desirable, as homebuyers factored in affordable fuel costs.

Average 30-Year Fixed Mortgage Rate in 2016

Mortgage rates fell slightly again, settling at 3.79% in 2016, compared to 3.99% the prior year. This favorable environment for financing encouraged many homebuyers to jump into the market. Getting pre-approved with a local mortgage loan originator ensured buyers could seize opportunities quickly and position themselves in a competitive market.

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Summary of Real Estate Market Analysis for Princeton, TX in 2016

The 2016 real estate market in Princeton, TX stands as a breaking historical point, marking the city’s transition into a period of dramatic and sustained growth. This year set a new precedent with 351 homes sold—a staggering 67.9% increase in sales volume compared to 2015. The surge in new construction homes, with 136 properties built, demonstrated a revitalized commitment to development and urban expansion. Rising property values, highlighted by an 19.2% increase in average price and higher demand for luxury homes, further underscored the market’s maturity and appeal.

Economic factors played a vital role in shaping these milestones. Lower mortgage rates, dropping to an average of 3.79%, provided buyers with easier financing options, while reduced gas and utility costs enhanced overall affordability for homeowners. This convergence of growth indicators positioned Princeton as a prime market, attracting both investors and families looking for long-term opportunities.

The market’s heightened momentum, particularly in faster Days on Market (DOM), robust close-price ratios, and increased buyer confidence, reflects the beginning of a dynamic era for the city. Princeton’s transformation in 2016 marked not only a breakthrough in real estate but also a catalyst for broader economic growth and urban betterment.

Looking ahead, the city’s strategic expansions, coupled with marked affordability and increased residential appeal, promise a flourishing future. Princeton, Texas has firmly cemented its position as an emerging hub in the region, poised for sustained real estate success and vibrant community development in the years to come.

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