Killeen offers low-cost living Posted On: Sunday, Sep. 27 2009 05:53 AM By Matt Goodman
Killeen Daily Herald

Earlier this month, real estate company Coldwell Banker released its annual Home Price Comparison Index of homes in 301 separate markets. According to the report, Killeen's housing market is the 27th least expensive in the nation and the fourth least expensive in Texas.

For the survey, the real estate company throws the typical housing market measurements of average and median prices to the wind: it instead analyzes the cost of 2,200-square-foot homes for a single family with four bedrooms and two-and-a-half baths.

"Nobody knows what a median home is, so by identifying this type of home we are able to allow consumers an apple to apple comparison and say that's what it would cost in all these places," said David Siroty, Coldwell Banker spokesman.

Under the requirements, Killeen's housing market hovers at $160,000, trumped by Arlington, at $138,775; Fort Worth, at $153,450; and Houston, at $159,847. In 2007, Killeen was the least expensive housing market in the nation at $136,725, according to the report.

But realtors believe the rate isn't indicative of a typical home's value in the city. For instance, only seven homes that were 2,150- to 2,250-square feet sold in 2008, according to Jean Shine, a Coldwell Banker United realtor based in Harker Heights.

Though the Coldwell Banker listing provides a snapshot of homes that surpass the average entry-level house, the homes that most often populate Killeen's housing market don't measure up to Coldwell Banker's requirements.

"We don't have many two-and-a-half bath homes, and we don't have as many two story, which you'll see more commonly in other markets," said Rodney Shine, operations manager at Coldwell Banker United in Harker Heights.

History of value

Going by the Coldwell Banker list, the home market in Killeen increased by nearly $15,000, going from $145,018 in 2008 to $160,000 in 2009. While this may be the case with the scant amount of homes in Killeen that qualify for the Home Comparison Price Index, realtors believe this isn't what individuals new to the market should expect for a home.

"I can assure you that the market has not increased $20,000 over last year; I wish I could say that it has, but it hasn't," Jean Shine said. "If you look at four-bedroom homes across the board, the average sale cost in 2008 was $140,000. If you took that across the board in 2009 it was $138,000 so it was actually a drop of $2,000."

Killeen has historically been one of the least expensive housing markets in the nation. The reason why the Killeen housing market is as affordable as the market in states hit hard by the recession – such as Michigan – is not because Killeen and Central Texas were hit as hard by the economy. The turnover by the military keeps the costs in its housing market on a slow increase or decrease of one to two percent annually, which is in line with Shine's figures.

"In our area it's always going to be troop movement," said Jose Segarra, spokesman for the Fort Hood Area Association of Realtors. "People are staying here to retire. Family members are moving, even in real estate when we sell homes to other people, we're seeing part of that grow, saying my brother is here or my sister is here."

Because of the impact from Fort Hood, many houses on the market in Killeen won't be as large as those in the Home Comparison Price Index because there isn't a major demand for them. Realtors in the area often sell much smaller homes that usually sell around $115,000 to $120,000, and this is more indicative of what home buyers new to the market should expect to pay, Segarra said.

"We're fairly fortunate to be where we're at," Rodney Shine said. "We're as affordable as ever, some other markets may have been more affordable but we're right where we've always been."

Contact Matt Goodman at mgoodman@kdhnews.com or (254) 501-7550.