• December 20, 2014

Home prices drop but annual comparison shows gains

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Posted: Friday, September 6, 2013 4:30 am

Fort Hood area average home sale prices dropped in a month-to-month comparison among larger national gains; but local monthly prices constantly fluctuate, and an annual comparison still shows gains.

Home prices in the Killeen-Temple metropolitan area rose 6.9 percent in July, about half of the 12.4 percent increase experienced nationwide compared to July 2012, a report by Irvine, Calif.-based CoreLogic showed.

According to the Fort Hood Area Realtors Association, July saw an average home sale price of $140,660. That’s up from the July 2012 average home sale price of $135,902.

“If I remember correctly, July was down,” said Jose Segarra, a spokesman for the association, which includes cities from Nolanville to Lampasas to Gatesville. “June and July are our busy months. July always seems to be our peak.”

May experienced a higher average than June this year, according to documents from the Fort Hood Area Realtors Association.

However, comparing the same month side by side on different years and the average sales prices are not the best way to look at the market, Segarra said. It is better to look at the median price — the middle cost of a house over a 12-month span.

“That gives you a much better analysis of what is happening to the housing market,” Segarra said.

In a 12-month comparison of median homes, the Fort Hood area increased from $128,865 to $131,500 the past year or 2.04 percent, stated association data.

The current year started out really good and it has kind of leveled off, Segarra said.

January 2012 to January 2013 comparison experienced a 9.45 percent increase, stated the documents.

“Our market is primarily driving by what happens on Fort Hood, and I think all that talk of sequestration (hurt the housing market),” Segarra said. “People have that uncertainty with the government and a lot of the people here work for the government.”

The U.S. housing market also is continuing to show progress, according to the CoreLogic analysis. Home prices — which include distressed sales — increased for the 17th consecutive month.

CoreLogic’s August projection forecasts 12.3 percent growth compared to August 2012. For the rest of the year, however, price gains are likely to be tempered by waning seasonal demands and higher mortgage costs, CoreLogic economist Mark Fleming said.

Nationally, home prices are within 18 percent of peak levels reached in April 2006, according to CoreLogic. At that time, Temple-area prices averaged $136,200, according to the Real Estate Center.

FME News Service reporter Cristina Waits contributed to this report.

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