The 2018 Princeton, Texas real estate market showcased rapid growth fueled by robust new construction activity, rising home prices, and increasing demand. This analysis uncovers key market patterns and trends, providing a detailed breakdown of sales data, property characteristics, and economic factors shaping the year.

Total Homes Closed

• Closed transactions: A total of 525 homes sold, reflecting strong activity and a 25.9% increase from 2017’s 417 sales.
• New construction homes: 264 homes, a remarkable rise from 187 in 2017, indicating a booming housing development sector.
• Homes with pools: Sales rose to 10 homes, up from 6 in the prior year, showing increased interest in luxury amenities.

Property Pricing Insights

The pricing metrics for 2018 denote steady growth across all segments:

• Minimum price: Increased from $62,000 to $72,000, suggesting higher minimum valuations per property.
• Maximum price: Rose from $540,000 to $599,000, driven by luxury sector demand.
• Average price: Climbed 8.5%, from $215,261 to $233,494, reflecting overall market appreciation.
• Median price: Jumped to $228,900, up 6% from $215,900, showcasing a healthier mid-market sector.

Property Size and Features

The Princeton, TX real estate market in 2018 served buyers with diverse needs, offering properties across a range of specifications:

• Bedrooms: An average of 4 bedrooms, consistent with 2017.
• Bathrooms: Typically 2 bathrooms, maintaining similar trends to the prior year.
• Square footage: Homes ranged from 840 sqft to 3,907 sqft, with 1,897 sqft as the average, up slightly from 1,882 sqft in 2017.
• Lot sizes: Averaged 0.377 acres, compared to 0.361 acres in 2017, reflecting slight growth in property space.

Market Dynamics

Efficiency remained a central theme with slight adjustments to specific metrics:

• Days on Market (DOM): Homes required an average of 30 days to sell, up from 23 days in 2017, signaling a longer turnover cycle.
• ClsPr/LstPr Ratio: Slight dip to 98.79%, showing slightly softer negotiations compared to 99.41% in 2017.
• ClsPr/OLP Ratio: Dropped to 97.81%, normalizing after the overbidding anomalies in 2017’s 134.60%.
• Average price per sqft: Grew to $125.24, up from $116.61, representing a 7.4% increase in property value per unit of space.

Economic context

Average Electricity Costs in Dallas-Fort Worth in 2018

Electricity prices increased to $0.13 per kilowatt-hour in 2018, compared to $0.12 in 2017. This climb likely drove demand for energy-efficient housing and renovations, placing greater emphasis on properties with modern upgrades that helped households manage increasing utility costs.

Average Price for Regular Gasoline in Texas in 2018

Gas prices also rose, reaching $2.44 per gallon in 2018, up from $2.19 in 2017. With transportation becoming more expensive, proximity to workplaces and public transportation remained important for homebuyers. Walkable neighborhoods and mixed-use developments gained traction during this period.

Average 30-Year Fixed Mortgage Rate in 2018

Mortgage rates climbed to 4.70% in 2018, from 4.14% in the previous year. For many homebuyers, this level of interest rate signaled urgency to act before rates increased further. Getting pre-approved by a local mortgage loan originator was pivotal for navigating the pressures of a market increasingly shaped by rising rates.

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Summary of Real Estate Market Analysis for Princeton, TX in 2018

Princeton’s real estate market in 2018 maintained its upward momentum, with strong gains in sales volume, pricing, and new construction. While affordability faced headwinds with higher interest rates, the market continued to grow through diversified inventory and demand across all buyer segments. The luxury market thrived with standout sales, like the $599,000 estate.

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