For the first quarter of 2018, Texas home sales and Texas home prices both increased, while inventory and active listings decreased, according to the Texas Association of REALTORS® Texas Quarterly Housing Report.
“The momentum from the end of 2017 has moved into 2018, as Texas homes continue to be in high demand,” said TAR Chairman Kaki Lybbert. “This strong activity we’ve seen in home sales volume during the first quarter of 2018 is setting the stage for a strong summer selling season for Texas real estate.”
Texas home sales for the first quarter of 2018 increased 2.2 percent compared to the first quarter of 2017, to 70,292 sales, and median price increased 5.7 percent to $224,500. Inventory dropped 0.2 months to 3.3 months, with approximately 6.5 months of inventory deemed a balanced market, according to the Real Estate Center at Texas A&M University. Active listings were down 2.9 percent, and homes spent an average of 66 days on the market, two more days than this time last year.
“Although home sales activity for the first quarter in 2018 continues to keep a positive pace from previous years, the rate at which these increases are occurring is beginning to slow as inventory becomes tighter,” said Real Estate Center Chief Economist Dr. Jim Gaines. “The second and third quarters of the year are typically the busiest and most competitive in the Texas real estate market, and this summer is shaping up to be no different.”
Lybbert said, “While we continue to see an increased shortage of housing inventory, it is encouraging to see the economic growth in Texas lead to a surge in home sales activity, which bodes well for the summer season. However, if housing inventory continues to decrease while prices rise, we may continue to see affordability challenges across the state.”