Texas Home Sales Set for Large Increase in 2021

Single-family home sales in Texas are expected to increase over eight percent in 2021, according to the Texas Real Estate Research Center at Texas A&M University. Sales “are expected to maintain a rapid clip this year with an 8.4 percent projected increase,” said Center Research Economist Dr. Luis Torres.

He said, “That assumes mortgage rates remain relatively low, and the economic reopening continues as vaccines are widely distributed.”

According to Texas Real Estate Research Center, housing sales stabilized in November 2020. This followed record-setting numbers in the Fall as sales totals made up for pandemic-related pauses and pullbacks earlier in the year. The Center also indicated that building permits and housing starts normalized in November following strong activity.

With all-time low interest rates enticing buyers, steady demand for housing pushed average days on the market to 44 days. Torres described the lack of housing inventory as “extreme” and, coupled with strong demand, it is expected to push median home sales price up by double digits in the coming year.

Home prices already have experienced large gains, even during the pandemic. “The shortage of homes priced less than $300,000 pushed buyers toward higher-priced homes,” Torres said. The Texas Real Estate Research Center’s Repeat Sales Home Price Index also accelerated.

“Home sales would be even stronger if not for persistently low inventories,” he said, noting that robust construction activity in the coming year may help with the supply of active listings.

Learn more in the January edition of Texas Housing Insight.