Ready To Sell Your Galveston Island Property? Spring Market Is Just Around The Corner!

Susan Lutz - REALTOR®/ECRG Team Leader | February 24, 2025

As spring approaches, Galveston Island's real estate market is preparing for its busiest season. The warmer weather brings an influx of visitors and potential buyers eager to secure their piece of island paradise. Whether you're considering selling your beach house, vacation condo, or primary residence, timing and preparation are key to a successful sale.

Understanding the Spring Market

Spring traditionally marks the peak season for real estate transactions on Galveston Island. As temperatures rise and families plan their summer vacations, interest in island properties typically surges. This increased demand can create favorable conditions for sellers who are properly prepared.

Pricing Strategy: A Critical Factor

In today's market, correct pricing is crucial for attracting qualified buyers. Overpricing can lead to extended days on the market, while underpricing might leave money on the table. A comprehensive market analysis that considers recent sales, current inventory, and property condition will help determine the optimal listing price.

Preparing Your Property

Before listing, consider these essential steps:

  • Deep clean and declutter all spaces
  • Address any maintenance issues
  • Enhance curb appeal with fresh landscaping
  • Consider minor updates to kitchens and bathrooms
  • Stage your home to highlight island living

Property Condition: A Key Price Driver

Today's buyers are particularly focused on move-in ready properties. Updated homes with modern amenities, fresh paint, and well-maintained systems typically command premium prices and sell more quickly. If your property needs work, it's essential to price it accordingly. Buyers carefully calculate renovation costs when making offers, often deducting more than the actual cost of updates from their offer price.

Meeting Market Expectations

To maximize your property's value, ensure:

  • All systems (HVAC, plumbing, electrical, etc.) are properly maintained and functioning
  • Kitchens and bathrooms are updated and in excellent condition
  • Flooring is in good shape with no visible wear or damage
  • Windows and doors operate smoothly and efficiently
  • The roof is well-maintained with no visible issues
  • The exterior is clean and well-maintained, including landscaping

Setting the Right Price

Properties that aren't updated or require significant maintenance must be priced to reflect their condition. Consider:

  • Cost of necessary updates and repairs
  • Current market conditions
  • Comparable sales of both updated and non-updated properties
  • Competition from new construction and recently renovated homes

Professional Guidance

With spring's peak season approaching, now is the time to evaluate your property's condition and make necessary improvements. Whether you choose to update your property or price it to reflect its current condition, professional guidance can help you make informed decisions that will attract the right buyer.

For expert assistance in evaluating your property's condition and determining the optimal pricing strategy, contact Susan Lutz at Elite Coastal Realty Group with United Real Estate. She can help assess your home's current condition and advise on which improvements might offer the best return on investment.

Contact Elite Coastal Realty Group TODAY to explore your real estate possibilities.

Susan Lutz

REALTOR ® | ECRG Team Leader

Elite Coastal Realty Group with United Real Estate

susanlutz@elitecoastalrealtygroup.com

409.307.1830

www.elitecoastalrealtygroup.com

 

2024 Year in Review: Real Estate Market - What Happens Next?

Susan Lutz - REALTOR®/ECRG Team Leader | December 16, 2024

The Burning Question: Why Isn't My Property Selling?

The 2024 real estate landscape across the nation has been characterized by significant challenges for both buyers and sellers, creating a complex market environment that demands strategic approaches.

But the market exhibits remarkable diversity, with each local market presenting its own unique economic landscape. Some areas continue to demonstrate robust performance, while others grapple with significant market stabilization challenges. In Galveston Island, we face the complexity of the short-term rental (STR) property sector.

Investors were initially drawn to the island by the promising prospect of short-term rental income offsetting property ownership costs. However, the current market reality is that, in many instances, rental revenues fall substantially short of covering the financial obligations associated with property ownership. This discrepancy between expectation and actual performance presents a significant challenge for property owners.

Affordability Squeeze: The Core Challenge

The Texas real estate market has been dramatically impacted by several key factors that have squeezed purchasing power and increased the overall expense of property owernship:

1. Property Pressures: Property values have continued to soar since the pandemic, creating a substantial barrier for potential buyers.

2. Rising Costs Beyond Purchase Price:

- Property Taxes: Between 2019 and 2023, property taxes in Texas rose by an average of 27%, positioning Texas among the top ten states with the highest tax increases, according to the National Association of Realtors.

- Insurance Costs: Property insurance rates in Texas jumped more than 23% in 2023, adding significant financial strain for homeowners.

In summation, the current squeeze on affordability has significantly impacted buyers' purchasing power. Many buyers can no longer afford what they once could, and readjusting their expectations is taking time. At the same time, sellers are also facing the reality that the market value of their properties is not what it used to be.

Market Stabilization and Potential Relief

Despite these challenges, there are glimmers of hope.

Texas successfully rejected an additional 10% increase in property insurance, providing temporary cost stabilization.

Interest rates, while currently averaging 6.7% in 2024, remain below the historic average of 7.73% since 1971.

The Federal Reserve is anticipated to cut rates by 25 basis points in December 2024, with potential further adjustments in 2025.

Galveston Island: A Buyer's Market

The Galveston real estate market presents a unique opportunity for buyers, characterized by surplus property inventory, properties available for sale, and active contracts in the market.

In this market, with over 1,800 homes for sale on Galveston Island, about 6.9% of the homes listed for sale are currently pending sale, meaning that roughly 7% of the homes are in the process of being sold. The remaining 93% are still available for buyers.

This suggests that, while there is some activity, the market is relatively slow, and sellers might face stiff competition or a prolonged selling period. And this means you need an edge.

Selling Strategies in a Competitive Market

To stand out in this competitive market, it is crucial not only to maintain and stage your property effectively but also to have an expert in the area who can market it to its full potential. This includes providing experienced pricing guidance. Overpricing your property may result in it being overlooked by the limited number of buyers in the market. To sell successfully, it is vital to price it correctly form the outset.

Why Choose Elite Coastal Realty Group?

While your property remains on the market, you can be assured that we will do everything possible to ensure it receives maximum exposure. Our marketing efforts include professional photography, ultra-high definition video tours, floor plans, open houses, magazine publications, online ads, email blasts, reverse prospecting, follow-ups with buyers who have favorited your property, and more. We also regularly network with an significant fellowship of Brokers/Agents, relocation companies, and 1031 Exchange specialists.

At ECRG, we take pride in our market expertise. We possess extensive knowledge of the market and apply decades of experience to every transaction. In today's market, having us by your side--whether you are buying or selling--could be one of the most worthwhile decisions that you can make.

Looking Ahead to 2025

The real estate market continues to evolve. For personalized insights and strategies tailored to your specific needs, we recommend scheduling a consultation to discuss potential opportunities and challenges.

If you have questions or would like to discuss what to expect in 2025, please reach out to schedule a call or in-person meeting. We would be happy to discuss your options in detail.

 

Contact Elite Coastal Realty Group TODAY to explore your real estate possibilities.

Susan Lutz

REALTOR ® | ECRG Team Leader

Elite Coastal Realty Group with United Real Estate

susanlutz@elitecoastalrealtygroup.com

409.307.1830

www.elitecoastalrealtygroup.com

 

 

Galveston Island is a Perfect Spring Break Destination for the Whole Family

Susan Lutz - REALTOR®/ECRG Team Leader | March 7, 2024

Goodbye winter! Spring Break is here! For Texans and regional travelers looking to visit the beach this season, Galveston is ready with loads of things to keep the whole family having fun!

While Seawall beaches are open year-round, several of the island’s public beach parks – Stewart Beach, East Beach and Dellanera R.V. Park — will open for beachgoers March 9 for the 2024 beach season, offering a variety of amenities. Visitors to the beach parks will have access to restrooms, showers, beach chair rentals and other concessions.

(Be sure to check out the new mobile amenities at Stewart beach featuring ADA accessible decking, trailers, restrooms, showers and shade located closer to the beachfront. In addition, beach wheelchairs are available at Stewart and East Beach to check out for free on a first-come, first-served basis.)

Budding architects and engineers can learn how to build sandcastles from the pros during free sandcastle lessons taking place March 9 and 16 at 11 a.m., 1 p.m. and 3 p.m. at East Beach and every Saturday thereafter from Memorial Day to Labor Day weekends. Some supplies are provided, but participants are encouraged to bring beach buckets and shovels. Lessons are by the water’s edge, straight down from the East Beach Pavilion. Registration is not required.

Make sure to secure a spot to watch the skies over downtown Galveston light up with hundreds of drones on March 10. Visitors to the island can watch from The Strand at Saengerfest Park for a Drone Show Watch Party starting at 7p.m. Snag your seat early and enjoy some pre-show entertainment. The drones will lift off above Shearn-Moody Plaza at 25th & The Strand St. around 8 p.m. The 12-minute display is being paid for by Sky Elements and is free to attend.

And of course, many of Galveston’s popular attractions will be open daily during spring break. The Galveston Island Historic Pleasure Pier amusement park will be open daily March 8-17. The island’s many historic mansions and museums such as Bishop’s Palace and the Ocean Star Offshore Drilling Rig & Museum will also be open daily throughout the season.

Moody Gardens and their 1.5-million-gallon aquarium teeming with creatures from tuxedo-clad penguins to seals and sharks will also be open for families. Visitors to Moody Gardens can take advantage of a special deal throughout the month of March with the purchase of the One-Day Value Pass that includes unlimited admission to the Aquarium and Rainforest Pyramids; Discovery Museum; MG3D, 4D, and Audience Recognition Theaters; and Colonel Paddlewheel Boat for $80 per adult and $70 for children and seniors. For an added value, guests can apply their admission purchase toward an Annual Membership, that pays for itself in only two visits and includes admission to all of these attractions and a variety of membership benefits for a full year of fun.

At Moody Gardens, visitors can explore the Aquarium, Rainforest and Discovery Pyramids and much more. Pyramid Kids Camps for children grades K-8 will take place from March 11-15. They feature a mix of activities, animal presentations, games, crafts and more. Junior golfers can hit the links during a camp set for March 12-14. Adults can share in the fun, too. The Spring Adventures program includes early entry into themed attractions in the rainforest and aquarium pyramids starting with a guided tour and followed by an animal presentation. Go to www.moodygardens.org for more information.

Spring Break brings an opportunity to view five Washed Ashore sculptures made entirely from marine debris. Most are more than six feet tall and include depictions of coral reefs, jellyfish, penguins, sharks and more. They will remain in Galveston until March 30.

The sculptures are located throughout the island: Rosa the Bald Eagle at Pier 21, Gretta the Great White Shark at Saengerfest Park, Stanley the Sturgeon at the Galveston Island Historic Pleasure Pier, Brody the penguin at the Children’s Museum and Lidia the seal at Moody Gardens. The Washed Ashore sculptures serve as monumental reminders about the hazards of single-use plastics and their harmful impact on marine life.

The Galveston Downtown Cultural Arts District, an official cultural district designated by the Texas Commission on the Arts, offers an intriguing selection of theaters, shops, restaurants, and museums that are well worth visiting. The Victorian architecture of Strand Street, widely known as The Strand, makes for a charming stroll as you shop for unique finds or grab sweets at La King’s Confectionery. Saengerfest Park at 23rd and Strand is a free family park home to a life-size chessboard and regular live entertainment. Be sure to also check out the district’s 20-plus art galleries, displaying fine art, sculpture and photography in beautifully restored historic buildings -- many can be found on Postoffice Street.

And while exploring and enjoying all that Galveston has to offer, please remember that the natural beauty of Galveston's beaches is a major draw for visitors, but with that comes the responsibility of preserving and protecting the environment. Whether you're a first-time visitor or a regular beachgoer, there are many ways that you can help curb littering and keep the beaches free of trash. Let’s have a positive impact on the environment and help preserve Galveston island’s natural beauty.

 

Stay tuned for more updates on market trends or reach out to us for more information.

 

Susan Lutz

Elite Coastal Realty Group - United Real Estate

Info@elitecoastalrealtygroup.com

713-818-5554

 

 

The Importance of Effectively Pricing Your Home in Today’s Market

Susan Lutz - REALTOR®/ECRG Team Leader | December 30, 2023

Despite the housing market cooling toward the end of 2023 and for the holidays, the new year is here. There have been high expectations of continued, but moderate, lowering of interest rates and increased inventory for 2024, making it a potentially more attractive year for buyers.

What does this mean for sellers?

The market conditions remain highly localized. National trends may not, in fact, reflect your neighborhood. It is important to focus on the trends in your community and immediate area to understand current, true value.

Second homes and vacation properties, being the luxuries that they are, are among the first to see cooling in value amidst a market like we have seen over the last two years. As the market has shifted, sellers are facing a tough reality in that their homes may not sell for the same price that it could have just two years prior.

Importance of setting a list price - keeping up with the speed of price change

Continued fluxes in the market can make it difficult for sellers to set their listing at a reasonable price. It is important to work with a professional Realtor who is well-versed in your local area. At the Susan Lutz - Elite Coastal Realty Group at United Real Estate we can help you understand the unique trends in your local market to help you determine the best price to present your home to today’s buyers. Ultimately, the choice is yours. However, our services can make that choice to sell and at what price—so critical to one of the largest investments you have—the most knowledgeable one.

In late 2022, appraiser and housing market analyst Ryan Lundquist provided pricing guidance. Lundquist’s advice replicates the standard by which we at the Susan Lutz - Elite Coastal Realty Group have followed for our over 30-year career in Real Estate. Below is some key pricing guidance in today's market from Lundquist.

Be sure to look at the ‘Under Contract’ date when pulling comps

Comps, or comparable properties, are often used when determining a listing price for a home. Typically, they’re recently sold homes in the same area as the listing that are similar in size, year built, condition, and other features. However, when the market is changing this fast, Lundquist advises sellers and agents not to look at recently sold properties. “Price according to properties that are similar and are getting into contract,” he says. “[Closed] sales are really like historic artifacts because they tell us what the market used to be like.” If a home recently closed but went into contract in May, then it reflects May pricing, not recent pricing. You want to look at what’s going on in the market right now. “The best view of that is to look at listings that aren’t selling – that tells us what it’s probably not worth – and then look at properties that are getting into contract and moving.”

Don’t always trust the ‘median price decline’ stats 

A lot of times you’ll see in the media that median home prices are doing this or that. While this can be good for a general sense of market trends, it may not be the most reliable source for pricing your specific home. With that said, “median price is back to October 2021.” But median price decline doesn’t always mean value decline, according to Lundquist. It’s important to know the difference and focus on the specific comps that are under contract rather than general trends.

Understand you will likely need to provide concessions

“That seller honeymoon from 2020 and 2021 is simply over,” notes Lundquist. “So, sellers probably have to concede that they’re probably going to have to give credits to buyers.” Many more homes are selling with seller concessions like closing costs, discount points, and mortgage rate buy down fees.

And that you’ll likely have to sell for less

This will likely be the hardest for sellers to understand. You can’t price aggressively like 2021 and early 2022. “Sellers have had a real reconning where they’ve had to wake up and realize that they’re no longer running the show,” Lundquist says. So, when the buyer comes in and asks you to lower your price, it may be worth resisting, but you’ll likely need to seriously consider it if you want your home to sell fast. “[Sellers] need to not get bent out of shape when they don’t sell at the original list price […] I think it’s time to bend toward buyers.”

Expect spring inventory to pick up

Many people are wondering how the spring market will unfold. While it could depend on mortgage rates, it’s very difficult to affect the seasonal patterns in real estate. In other words, Lundquist predicts that the spring market will pick back up again. More buyers, more homes for sale.

 

Source: https://www.cmgfi.com/blog/how-to-effectively-price-your-home-in-the-modern-market-according-to-an-appraiser-2022-11-29

 

Stay tuned for more updates on market trends or reach out to us for more information.

 

Susan Lutz

Elite Coastal Realty Group - United Real Estate

Info@elitecoastalrealtygroup.com

713-818-5554

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