The second year of the COVID-19 pandemic continued to shape the real estate market in Princeton, Texas. Work-from-home trends and lifestyle changes encouraged demand for spacious homes and properties with unique features. HomeBuyers benefited from historically low mortgage rates averaging 3.15%, further fueling market activity. With 849 homes sold, the market demonstrated resilience in the face of economic challenges.

Total Homes Closed

A total of 849 residential single-family homes closed in Princeton, TX in 2021.

New Construction Homes: 402, highlighting an active development year.

Homes with Pools: 12, reflecting steady interest in leisure-driven amenities.

Property Pricing Insights

• Minimum Price: $130,000
• Maximum Price: $1,025,000
• Average Price: $311,550
• Median Price: $300,000

This data reflects rising property values and a growing demand across pricing tiers, especially in the mid-to-luxury range.

Property Size and Features

• Bedrooms: Properties ranged from 1 to 6 bedrooms, with an average of 4.
• Bathrooms: Ranged from 1 to 5 baths, with an average of 2 full baths.
• Square Footage: Homes varied from 768 sqft to 4,543 sqft, with an average of 2,080 sqft.
• Lot Size: Lot areas ranged from 0.000 to 12.980 acres, averaging 0.308 acres per home.

The focus on larger homes and generous lot sizes illustrated buyer preferences for comfort and space.

Market Dynamics

• Days on Market (DOM): Properties averaged 38 days on the market, showing slightly quicker transactions than 2020.
• ClsPr/LstPr Ratio: 101.70%, indicating frequent sale prices above listing prices.
• ClsPr/OLP Ratio: 104.22%, showcasing competitive buyer demand compared to original listings.
• Average Price Per Square Foot: $154.56, reflecting a per-square-foot increase aligned with overall price growth.

Economic context

Average Electricity Costs in Dallas-Fort Worth in 2021

Electricity prices rose again to $0.14 per kilowatt-hour in 2021, up from $0.13 in 2020. This upward trend in energy costs likely pushed buyers to prioritize homes with efficient heating and cooling systems. Green-certified homes may have seen increased interest as buyers sought to offset higher utility bills.

Average Price for Regular Gasoline in Texas in 2021

Gas prices climbed to $2.65 per gallon in 2021, up from $1.82 in the prior year. This sharp increase put pressure on household budgets, especially for buyers with long commutes. Urban properties or homes in transit-accessible locations likely became more appealing as buyers aimed to minimize transportation expenses.

Average 30-Year Fixed Mortgage Rate in 2021

The average 30-year fixed mortgage rate dropped slightly to 3.15% in 2021, down from 3.38% in 2020. This decline further fueled homebuying demand, making mortgages more affordable despite rising home prices. Potential homebuyers were strongly advised to secure pre-approval through local mortgage loan originators to enhance their financial readiness during highly competitive conditions.

Curious about today’s mortgage rates and the home you can comfortably afford?

Submit a no-obligation mortgage application today and get pre-approved to determine your budget and take the first step toward homeownership with confidence.

Summary of Real Estate Market Analysis for Princeton, TX in 2021

The 2021 real estate market in Princeton, TX was marked by intense activity and opportunity, creating unique dynamics for both homebuyers and home-sellers.

Homebuyers’ Perspective

For homebuyers, historically low mortgage rates averaging 3.15% provided a rare opportunity to secure financing at affordable terms. However, increased property prices—especially with the average price rising to $311,550—created challenges for entry-level buyers. New construction homes, accounting for 402 of the sales, stood out as an attractive option for those seeking modern amenities and energy-efficient features. The competitive nature of the market, reflected in the jump in close-to-list price ratios above 101.70%, meant buyers needed to act quickly and decisively to secure their desired properties. For many, focusing on lifestyle priorities like additional space and comfort became more critical than ever.

Home-Sellers’ Perspective

For home-sellers, the 2021 market offered strong incentives, with higher property valuations driving increased profits. The rise in both average and median prices represented a lucrative environment to sell, while a slightly shorter 38-day average DOM indicated sustained buyer interest. Sellers who priced their properties competitively were more likely to attract offers above the listing price, as shown by the robust ClsPr/LstPr ratios. Larger homes with features like more bedrooms, larger lot sizes, or pools continued to command attention, and the growing demand for spacious, lifestyle-oriented properties presented an opportunity to maximize value. By tailoring listings to highlight these sought-after features, sellers could further capitalize on the prevailing market trends.

2021 showcased a market shaped by resilience and adaptability. Lower financing costs and evolving buyer priorities drove competitive demand, while sellers enjoyed the rewards of higher valuations for well-positioned properties. Both groups benefited from the dynamic synergy of accelerated development and shifting needs, solidifying Princeton’s market strength during another extraordinary year.

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.

It’s All About You and Your Real Estate Goals!

My mission is to serve you! With my knowledge and expertise, I’m here to help you achieve all your real estate goals!
I’m passionate about helping buyers and sellers navigate the exciting real estate landscape in Princeton, Texas! Whether you’re searching for your dream home, exploring land options, or looking for commercial properties, my Real Estate Services have you covered.

Contact me today for all your real estate needs in Princeton, Texas! Call/text 214-940-8149

A Comprehensive Analysis of Single-Family Residential Housing Market in Princeton, TX: 2003 to Present