4 real estate trends to know in San Marcos, Buda and Kyle

Several new housing developments continue throughout San Marcos, including this one on the northeast side of town.

Several new housing developments continue throughout San Marcos, including this one on the northeast side of town.

Image description
4 real estate trends to know in San Marcos, Buda and Kyle
Image description
4 real estate trends to know in San Marcos, Buda and Kyle
Image description
4 real estate trends to know in San Marcos, Buda and Kyle
Image description
4 real estate trends to know in San Marcos, Buda and Kyle

1. Prices continue to Steadily climb for houses sold in San Marcos, Kyle and Buda

The median closing price of houses has averaged about an $82,000 jump in all three cities since 2011, going from a range near $125,0000 to $250,000.

In San Marcos the median sale for new and existing homes was $146,533 in 2011. In 2017, the median price was $224,033. The same trend came in Kyle, where the median has gone from $128,944 to $207,449. The greatest hike, along with the highest start and finish in that timeframe came in Buda, where the median price in 2011 was $163,773 and finished at $253,977.

Affordability and diversity are two areas the cities and the Realtors who sell in them said are an issue.

“We need more single-family houses that [are] affordable for working families,” San Marcos City Manager Bert Lumbreras said. “This is not subsidized housing, but options that would be affordable and available for a family of four with an income of $120,000 or less.”

Lumbreras said the city can help encourage that growth in the college town of 59,060.

“We also plan to encourage more low-income tax credit projects that will look at non-student housing rentals for families, seniors or other specific needs,” Lumbreras said.

Buda Assistant City Manager/Planning Director Chance Sparks said developers are changing to the needs of the economy and growing population.

“It seems like builders are beginning to rediscover housing types that were forgotten for the last 70 years, he said. “There is need for well-placed multifamily projects.

“In all instances, there is particular need for walkable design in and near mixed use settings that can help provide economic strength and access, improve quality of life and reduce transportation costs.”

Realtors have seen demand increase through all three cities as prices climb in Austin and San Antonio.

“They are still affordable communities,” said Broker/Realtor Stacy Bass, a board member of the Austin Board of Realtors. “It’s a challenge to find houses at $275,000 or less. It’s a great  seller’s market right now and I don’t see that changing anytime soon.”

Sparks said inventory is the issue at this point.

“A current lack of inventory has generated a spike in home prices, and, as a result, declining affordability for many homebuyers. This trend carries into the rental market as well, as people find increasing percentages of their income dedicated to housing and transportation.”

2. Apartment prices continue to rise while occupancy rates fall slightly to 87 percent

There are 76 apartment communities in operation in the cities of San Marcos, Kyle and Buda with 14,247 units. The majority have between 100 and 250 units.

According to data from Bruce McClenny of Apartment Data Services, current occupancy is at 87 percent for the three cities.

The occupancy rate is the lowest in three years, with it being at or above 95 percent from September 2016 to May 2017. It has dropped every month since November. The Austin trend has showed a drop overall in occupancy rates the last six months.

For the three cities, the average price for a one-bedroom apartment has gone from $845 in August 2015 to $919 in July 2018, a 3 percent annual growth trend. Two-bedroom units have gone from $1,011 in August 2015 to $1,145 in July 2018, and annual growth rate of 4 percent. Three-bedroom apartments have an annual growth rate at 4.7 percent and the numbers start at $1,295 per month in August 2015 and go to $1,465 in July 2018. There are 224 efficiency apartments in the market, along with 5,195 one-bedroom, 5,823 two-bedroom and1,622 three-bedroom apartments. The rest are 4- and 5-bedroom apartments.

3. Houses are selling faster in the three markets

Days houses are on the market have decreased significantly over the last few years, according to statics provided by the Austin Board of Realtors for the region.

“The real number that stands out is months of inventory,” said Kevin Scanlan, broker/owner of All City Real Estate and Secretary/Treasurer of ABoR. “Six months of inventory is considered a balanced market, which means if no new listings were to go on the market, there would be six months’ worth of homes for sale. We are seeing three months of inventory for several years now, and at times, two months.

“I have 400 agents in my company and every day I get a call from an agent who says, ‘We have 20 offers on the table.’”

The quickest to sell, new construction and existing homes in all price ranges, are in Kyle, where a house listed for sale spent an average of 83 days on the market in 2011. In 2017, houses in Kyle spent an average of 48 days before being sold, a drop of 42 percent. Lowest averages came in May and July 2017, when houses averaged 29 days on the market.

Buda’s new and existing homes were on the market for an average of 62 days in 2017, down from 80 in 2011. The numbers represent a drop of 23 percent during those years.

In San Marcos, houses on the market sell 21 percent faster now than they did in 2011. The average numbers started and ended higher than in Buda and Kyle. The average house was on the market for 98 days in 2011 and only 77 days in 2017. In 2018, the average is trending lower than 2017 for January through May.

4. Home sales on the way up in San Marcos, Kyle and Buda

The number of new and existing homes sold in San Marcos, Kyle and Buda has climbed at a steady pace since 2011.

According to statistics from the Austin Board of Realtors, the number of closed listings in Buda saw the highest growth, going from 378 in 2011 to 821 in 2017.

Kyle was the only city of the three to have one year when the number of new and existing homes was less than the previous year. In 2016, Kyle had 1,052 homes that sold, while in 2017 it was 1,000. In 2011, 517 houses sold in Kyle.

In San Marcos, there were 343 houses sold in 2011. Slow, steady growth over the next few years has the number at 700 in 2017.

The trends for all three cities are on pace for similar growth in 2018, according to numbers in the first five months.

“These cities are attractive because you are still in Austin and the commutes aren’t horrible,”  Scanlan said. “This is great for the growth in these cities, and people in Williamson and Travis counties are attracted to what they can get for the same money here.”
By Joe Warner
Joe Warner is managing editor of the nine Austin-Central Texas editions of Community Impact Newspaper. He previously served as senior editor of the flagship Round Rock, Pflugerville and Hutto newspaper. He came to Central Texas from Metro Detroit, where he was editor and general manager of several daily and weekly publications. He is the former president of the Michigan Press Association and was on the MPA board of directors for nine years.


Seniors from San Marcos High School paraded down McCarty Lane in San Marcos May 29. (Evelin Garcia/ Community Impact Newspaper)
GALLERY: Here’s how a parent-led parade honored San Marcos High School seniors

Thundering cheers echoed down McCarty Lane in San Marcos on May 29 as an army of high school seniors wearing caps and gowns paraded down the street on flashy rides.

The Central Texas Food Bank will host a food distribution event in Kyle on May 30. (Nicholas Cicale/Community Impact Newspaper)
Central Texas Food Bank distribution event in Kyle on May 30

Food bank expects more than 1,000 families at distribution

Miriam McCoy and Brenda Remme were lead donors for the new transitional housing project. (Courtesy Hays-Caldwell Women’s Center)
Hays-Caldwell Women’s Center breaks ground on $4 million transitional housing project

After years of planning and preparation, the Hays-Caldwell Women’s Center’s transitional housing project broke ground virtually April 17.

A May 27 preliminary budget discussion showed Central Health expects to see a slow-down in property tax revenue growth in fiscal year 2020-21. (Iain Oldman/Community Impact Newspaper)
Early budget forecasts from Central Health show anticipated 'slow-down' in tax revenue collection

Preliminary budget forecasts from Central Health show the health care district anticipates a slow down in tax revenue collection growth.

Outdoor venues in all Texas counties will be permitted to operate at up to 25% capacity starting May 31. (Courtesy Adobe Stock)
Spectators to be welcomed back to Texas outdoor sporting events May 31 at 25% of venue capacity

Venue owners must operate under guidelines that facilitate appropriate social distancing.

Each eligible child will receive $285 in benefits. (Courtesy Adobe Stock)
Some Texas students eligible for one-time federal benefit to aid with food purchases

Texas received approval from the U.S. Department of Agriculture to provide more than $1 billion in pandemic food benefits.

Here are the coronavirus updates to know today. (Community Impact staff)
Hays County nears 4,000 tests administered for coronavirus

Cases rise by 18 in Hays County on May 27

The new coffee shop is located at 817 Chestnut St., Ste. 221, San Marcos. (Courtesy Kahvie Lofts)
Kahvie Lofts coffee shop now open in San Marcos

The coffee shop features a menu inspired by a blend of different cultures with the intention to serve the best from everywhere, according to owner Sarah Nicotra.

Texas Comptroller Glenn Hegar spoke to members of the Clear Lake Area Chamber of Commerce on May 27 about what the state's post-pandemic economic turnaround might look like. (Screenshot of May 27 virtual luncheon)
Texas comptroller predicts slow, steady economic turnaround post-pandemic

Texas Comptroller Glenn Hegar said the state entered the era of the coronavirus in a healthy financial situation, which bodes well for the future as reopening continues, but that Texans are not out of the woods yet.

Nursing facilities across Texas will be able to apply for federal funds to purchase devices to connect residents to friends and family. (Courtesy Adobe Stock)
Gov. Greg Abbott announces $3.6 million project to connect nursing home residents to families

Gov. Greg Abbott announced May 27 that $3.6 million will be provided to nursing facilities to purchase tablets, webcams and headphones to connect residents with family members.

Amie Gonser will open 620 Art Gallery & Studio in June as a fine art gallery and space for art education classes. (Courtesy Amie Gonser)
IMPACTS ROUNDUP: News on 20 Central Texas businesses and nonprofits

Read about Central Texas business news from Community Impact Newspaper's coverage this week.

Voters are encouraged to bring their own equipment in order to prevent catching or spreading coronavirus.(Graphic by Matthew T. Mills /Community Impact Newspaper)
State of Texas releases voter health checklist for polling stations in June and July

Texas Secretary of State Ruth Hughs released a checklist May 26 for voters to follow to help prevent the spread of coronavirus at polls.