Texas real estate is trending toward another record-breaking year in 2018, following an increase in third quarter sales and prices, according to the Texas Association of REALTORS® Texas Quarterly Housing Report. Home sales were up 4.4 percent for the quarter when compared to the third quarter of 2017, and median price also was up 4.4 percent to $235,000.
“At the current rate that home sales and active listings are increasing, we are trending towards another record-breaking year in Texas real estate,” said TAR Chairman Kaki Lybbert. “The record-breaking home-sales activity this summer in Texas is an example of the strong economy, job growth and quality of life in our great state that keeps driving demand for home ownership.”
Homes for sale in Texas spent an average of 52 days on the market, and active listings increased in the third quarter by 4.7 percent, compared to the same quarter in 2017. This led to an increase of 0.1 months in overall housing inventory, to a level of 3.9 months. Between six and 6.5 months is considered a balanced market, according to the Real Estate Center at Texas A&M University.
The market is somewhat constrained due to low levels of inventory for entry-level homebuyers. About 36 percent of homes sold in the third quarter of 2018 were priced under $200k, with another 31.5 percent of homes sold in between $200k and $299,999.
Real Estate Center Chief Economist Dr. Jim Gaines said, “Our market remains extremely strong but is still slowly moving toward normalization. Median home prices and home sales are up, but the rate of increase statewide is beginning to slow compared to prior years.” He added that with low inventory, “We’re seeing a concerted effort from homebuilders to build lower-cost housing to fit the entry-level homebuyers’ market.”