Following a Near-Record Spring, Texas Housing Sales Take a Breath

Housing sales in Texas dropped 10.1 percent in June 2019, following a near-record April and May, according to the Real Estate Center at Texas A&M University, but “remained on an upward trajectory amid lower mortgage rates, rising wages, and more moderate home price appreciation.” Additionally, MetroStudy data cited in the report shows “second quarter new home sales surpassed 24,000 in the Texas Urban Triangle for the first time since 2007, corroborating the overall strength of the state’s housing market.”

New home sales were strong across all price ranges in the second quarter, in particular in the $200-300k range. In the second quarter, Austin had a record level of new home sales, with 4,628 sales, an over 13 percent increase compared to the second quarter of 2018, while San Antonio experienced 15.6 percent growth in new home sales.

The median price for a Texas home increased 3.9 percent to reach a record high of $239,000. The report noted that while prices are increasing, they “are no longer soaring at double-digit growth levels.” In Central Texas, prices increased by more than four percent in both Austin and San Antonio, with medians of $313,000 and $229,700, respectively. Fort Worth prices increased 3.8 percent to a record high of $242,700.

The months of inventory for Texas housing was 3.8 months, with approximately 6-6.5 months considered a balanced market by the Center. Homes priced lower than $300k experienced less than three months of inventory, while luxury homes (over $500k) experienced more than a nine months’ supply. Austin’s inventory levels fell to 2.4 months, with Dallas at 3.3 months, Fort Worth at 2.6 months, and Houston closer to four months.