The 2022 real estate market in Princeton, Texas experienced a pivotal shift, shaped by economic adjustments such as the rise in 30-year average mortgage rates to 5.53%. Despite the increased cost of financing, property values soared to record-breaking levels, with both average and median prices reaching all-time highs. New construction homes and properties featuring pools remained in high demand, reflecting continued growth and evolving lifestyle preferences in the area.

Total Homes Closed

A total of 690 single-family homes were sold in 2022, marking an overall decline from 849 the previous year.

New construction homes accounted for 249 properties, showing sustained demand for modern builds.

Homes with pools increased to 17 properties, indicating a growing appeal for leisure-oriented features.

Property Pricing Insights

• Minimum Price: $135,000
• Maximum Price: $1,600,000
• Average Price: $369,296 (up from $311,550 in 2021)
• Median Price: $351,996 (up from $300,000 in 2021)

Rising prices reflect stronger competition and evolving homebuyer priorities.

Property Size and Features

• Bedrooms: Ranged from 1 to 6, with an average of 4 bedrooms per home.
• Bathrooms: Ranged from 1 to 5, with most homes featuring 2 bathrooms on average.
• Square Footage: Homes ranged from 576 sqft to 5,348 sqft, with an average of 1,869 sqft—a slight decrease from 2021.
• Lot Size: Varied from 0 to 19,189 acres, with the median being 0.140 acres, showing smaller average lot sizes in general.

Market Dynamics

• Days on Market (DOM): Homes sold in an average of 21 days, a sharp improvement from 38 days in 2021, highlighting faster sales.
• ClsPr/LstPr Ratio: Averaged 101.63%, showing sustained demand with buyers paying slightly above listing prices.
• ClsPr/OLP Ratio: Spiked to 245.02%, driven by standout properties that performed exceptionally well.
• Average Price Per SqFt: $201.61, up significantly from $154.56 in 2021.

Economic context

Average Electricity Costs in Dallas-Fort Worth in 2022

Average electricity prices spiked to $0.18 per kilowatt-hour in 2022, a sharp increase from $0.14 in 2021. Higher energy expenses placed added strain on household budgets, driving demand for energy savings. Homes with modern insulation, solar installations, or energy-saving appliances gained significant appeal during this period.

Average Price for Regular Gasoline in Texas in 2022

Gas prices surged to $3.47 per gallon in 2022, jumping from $2.65 in 2021. The substantial increase in transportation costs likely swayed homebuyers to favor central locations or areas close to public transit. Long commutes to suburban or rural homes might have lost some appeal in light of elevated gas prices.

Average 30-Year Fixed Mortgage Rate in 2022

Mortgage rates climbed steeply to 5.53% in 2022, up from 3.15% the year before. The notable rise in rates significantly impacted affordability, persuading many to reassess their homeownership goals. Homebuyers were urged to secure pre-approval with a local mortgage loan originator to better understand their financial limits in a tightened market.

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Summary of Real Estate Market Analysis for Princeton, TX in 2022

The 2022 real estate market in Princeton, Texas presented unique challenges and opportunities for both homebuyers and home-sellers, shaped by shifting economic conditions and evolving buyer preferences.

Homebuyers’ Perspective

For homebuyers, rising mortgage rates—reaching an average of 5.53%—posed significant affordability challenges, especially for entry-level buyers. Higher average and median property prices further narrowed access to homes in lower price ranges. However, the market offered notable opportunities, particularly in the availability of new construction homes, with 249 properties catering to those seeking modern designs and updated features. The increase in homes with pools also provided buyers the chance to invest in lifestyle-focused properties. With the average Days on Market (DOM) dropping to just 21 days, the market became highly competitive, reinforcing the need for buyers to act decisively and prepare strategically to secure desired properties before they sell.

Home-Sellers’ Perspective

For home-sellers, the 2022 market dynamics created substantial advantages. Average property prices soared by 18.5%, while the median price increased by over $50,000 compared to 2021, positioning sellers to gain significant returns. The faster pace of sales—reflected in the reduced DOM—meant well-priced, move-in-ready homes were in high demand. Sellers needed to carefully balance competitive pricing with market conditions to meet buyer expectations and maximize offers. Features like pools and larger properties resonated strongly with buyers seeking additional value, giving sellers of such homes an edge in the market. Meanwhile, the slight decline in new construction home sales hinted at an opportunity for resale properties to fill the gap in supply.

Both homebuyers and home-sellers in 2022 navigated a dynamic, fast-moving market influenced by economic shifts and changing priorities. Sellers enjoyed the benefits of increasing property values and brisk sales, while buyers had to overcome financial barriers but still found value in new developments and lifestyle-focused investments. The year emphasized the importance of preparation, understanding market trends, and adapting to the fast-evolving real estate environment.

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