According to the Texas Association of Realtors 2018-Q1 Texas Quarterly Housing Report, Texas real estate sales are increasing despite a decline in the number of houses for sale in Texas. Sales prices also made robust gains along with the number of homes sold, which indicates a strong year ahead for Texas real estate. The statewide real estate outlook reflects what’s happening in Austin area real estate, where home sales and prices are increasing while inventory shrinks.
“Right now, it seems like Texas is the land of plenty when it comes to jobs. The number of houses for sale isn’t keeping up with the pace of demand, though, which is bolstering home values throughout the state,” explained David Brodsky, broker/owner of boutique Austin real estate brokerage, David Brodsky Properties. “In Austin, the real estate market will likely have a strong summer selling season which may be a challenge for buyers as they compete with a lot of other buyers for not a lot of houses for sale.”
Texas Q1 2018 Real Estate Sales Satistics
Throughout Texas, there were 70,292 homes sold in the first quarter of 2018 which represents a 2.2 percent increase over Q1 2017. Median price increased 5.7 percent to $224,500 in the first quarter. Houses for sale in Texas during Q1 2018 that were priced at $300,000 or higher represented 29.1 percent of all homes sold. This is a 1.9 percent point increase over the first quarter of 2017. Sales of homes that were priced $299,000 and below dipped 1.7 percent compared to the same time last year.
In a press release from the Texas Association of Realtors, Kaki Lybbert, chairman of the Texas Association of Realtors explained how the sales momentum from last year created a bit of a juggernaut that pushed home sales in the first quarter of 2018. “The momentum from the end of 2017 has moved into 2018, as Texas homes continue to be in high demand,” she said. “This strong activity we’ve seen in home sales volume during the first quarter of 2018 is setting the stage for a strong summer selling season for Texas real estate.”
Addtional Texas Home Sales Statistics
- Active listings decreased 2.9 percent year-over-year to 93,151 listings in the first quarter of 2018
- Texas homes spent an average of 66 days on the market during the same time frame, two days more than last year
- Monthly housing inventory in Texas decreased 0.2 months from 2017-Q1 to 3.3 months of inventory. A balanced market between supply and demand has between 6.0 and 6.5 months of inventory, according to the Real Estate Center at Texas A&M University.
Dr. Jim Gaines, chief economist with the Real Estate Center at Texas A&M University, commented, “Although home sales activity for the first quarter in 2018 continues to keep a positive pace from previous years, the rate at which these increases are occurring is beginning to slow as inventory becomes tighter. The second and third quarters of the year are typically the busiest and most competitive in the Texas real estate market, and this summer is shaping up to be no different.”
Get Help with Your Home Purchase this Summer
In the end, it appears that the Texas and Austin real estate markets are thriving, which is great for home equity but presents a challenge for cash-strapped buyers. “Austin buyers shouldn’t get discouraged – they can still get a great deal on an Austin area home,” explained Brodsky. “The key is going to be to develop a strong real estate strategy in coordination with an experienced Austin real estate agent.”
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