The latest Texas Housing Insight report from the Real Estate Center at Texas A&M University shows that housing affordability is a challenge throughout the state of Texas. While, nationally, home prices have risen 7.4 percent since 2007, “The Federal Housing Finance Agency Housing Price Index shows Texas homes are 43.1 percent more expensive than they were in 2007,” said Center Research Economist Dr. Luis Torres.
Some of the major metros within Texas have seen even higher increases in the last 10 years. Austin has seen the highest growth, with a 65.7 percent increase in Austin home prices since 2007. Houston is second with 55.7 percent growth. The Dallas-Fort Worth market has seen a 55.4 percent increase in Dallas and a 44.1 percent increase in Fort Worth. More moderate, in comparison, is San Antonio, which has seen a 37.6 percent increase in home prices.
“Supply hasn’t kept up with demand,” said Torres, and this has pushed down the time homes spend on the market. In the Texas market overall, homes are on the market an average of 55 days, which is the lowest recorded time on the market since the Center began keeping records in 2011. In the $200,000 to $299,999 range, homes sell the fastest at an average of 51 days. For existing homes, the average time on the market for all price ranges is 50 days.
For existing homes in the major markets, Austin and Houston homes average 45 days on the market. Fort Worth homes average 30 days, and Dallas homes average 31 days. San Antonio has a 50-day average.
Inventory in Texas did increase for the second straight month to a supply of 3.8 months, with much of the growth for those homes priced over $400,000.