Home Prices Soar in Texas, while Sales Dip
published on June 24, 2021
The median price for a home in Texas rose in April 2021 for the fourth consecutive month, increasing 17.3 percent year-over-year to a record-breaking $289,700, according to the Real Estate Center at Texas A&M University’s Texas Housing Report.
The Texas market experienced a “shift in the composition of sales toward higher-priced homes due to constrained inventories at the lower end of the market.” The report cited Austin luxury homes, with the share of these sold homes more than doubling to two-fifths of total sales, which resulted in a 41.7 percent surge in median price to $451,400. In Dallas, median price increased 20.4 percent to $355,400. Houston had a median price increase of 17.5 percent to $291,300, while San Antonio increased 15.2 percent to $275,200, and Fort Worth increased 15.1 percent to $290,300.
Even with the increase in prices, overall home sales slowed, primarily due to lack of inventory, especially in the lower price ranges. Overall home sales were down 2.5 percent in April 2021, following a first-quarter decline. However, sales for homes priced more than $400,000 increased for the second straight month. For example, in Austin, overall home sales were down 8.4 percent, but luxury home sales increased by a third compared to year-end levels.
The report said “housing starts and building permits picked up in April, pointing to stable construction during the summer,” although these homes are unlikely to be at the lower end of the price spectrum. Single-family construction permits were up 4.4 percent in April. Houston had double-digit growth in permits, while Dallas flattened but is still the second-ranked metro in the nation for permits.
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