Texas Home Inventory Sinks to Record Low
published on July 23, 2021
Inventory for Texas homes for sale sank below 1.2 months in May 2021, the first time in series history, according to the Real Estate Center at Texas A&M University. This low was a result of an increase in sales activity and a decrease in homes added to the Multiple Listing Service. An inventory supply of around six months is considered a balanced market, and segments of the market spanned from 0.9 months of inventory for homes priced under $300,000 to two months for luxury homes (homes priced more than $500,000).
Of the major metros, Austin’s home supply was “most critical,” with inventory dropping to 0.4 months. Fort Worth inventory decreased to 0.9 months, Dallas inventory decreased to one month, Houston inventory decreased to a record-low of 1.4 months, and San Antonio matched the statewide average at 1.2 months. The report stated, “The severe lack of inventory is unsustainable and is the main headwind to the health of Texas’ housing market.”
Housing sales increased two percent statewide in May, a more stabilized increase than earlier in the year. Austin and Dallas experienced 2.3 percent increases in sales, San Antonio increased 1.9 percent, Houston increased 1.8 percent, and Fort Worth sales flattened due to a severe drop in lower-end homes.
The median home price for Texas homes increased for the fifth consecutive month, jumping 21.6 percent year over year to a record-breaking $292,100. Austin’s median price increase to $447,200 was the highest at 42.1 percent year over year, due to the share of luxury homes sold doubling. Dallas median price increased 25.8 percent to $361,900, Fort Worth median price increased 24 percent to $298,300, Houston median price increased 20.6 percent to $291,700, and San Antonio median price increased 16.1 percent to $271,900.
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