Texas attracts homebuyers due to its economy and business scene. Known for affordability, the Texas housing market is transitioning. This article explores recent price trends, inventory levels, and what buyers can expect in Texas.
Trends in the Texas Housing Market
The Texas housing market shows fluctuations and adjustments. In March, Texas saw a 7.1 percent decrease in home sales compared to the previous month, with 27,595 homes sold. Cumulative sales for the first three months are on par with last year's figures.
- San Antonio saw a 9.2 percent decline.
- Dallas-Fort Worth experienced a 3.2 percent drop.
- New listings saw a slight dip across the state, with Dallas and Houston most affected.
- Austin maintained stable new listings.
- The average days on the market decreased by one day statewide, indicating continued demand
Construction Activity
Single-family construction permits in Texas increased by 2.6 percent in March, totaling 14,013 issuances.
- Houston saw a decline.
- Austin and San Antonio saw increases.
- Construction starts rose by 2.6 percent.
- The total value of single-family starts surged from $6.55 billion to $9.51 billion compared to the previous year, indicating sustained investment in residential construction.
Texas Home Prices
Median home prices in Texas remained stable at approximately $340,000 for the second consecutive month. San Antonio experienced a 4.2 percent increase, while Austin saw a 5.2 percent decline.
Here's a detailed look at home prices in various Texas cities:
| City | Median Price | Average Price | Median List Price | Price Range |
|---|---|---|---|---|
| Houston | $315,136 | $345,000 | $362,000 | $238,900 - $1,580,000 |
| Dallas | $400,000 | $400,000 | $410,000 | $300,000 - $800,000 |
| San Antonio | $319,900 | $287,871 | $330,167 | $225,000 - $429,000 |
| Austin | $456,000 | $573,000 | $550,000 | $365,000 - $1,475,000 |
| Plano | $528,786 | $540,000 | $550,000 | $450,000 - $650,000 |
| Fort Worth | $325,000 | $330,000 | $340,000 | $250,000 - $700,000 |
| McAllen | $209,000 | $214,000 | $215,000 | $180,000 - $250,000 |
| El Paso | $219,900 | $224,000 | $225,000 | $200,000 - $250,000 |
| Irving | $345,000 | $350,000 | $355,000 | $300,000 - $450,000 |
| Flower Mound | $614,284 | $620,000 | $630,000 | $550,000 - $700,000 |
| Round Rock | $340,000 | $345,000 | $350,000 | $300,000 - $400,000 |
| Katy | $356,000 | $360,000 | $365,000 | $300,000 - $450,000 |
| Allen | $450,000 | $455,000 | $460,000 | $400,000 - $550,000 |
| Arlington | $320,000 | $325,000 | $330,000 | $275,000 - $400,000 |
| Carrollton | $400,000 | $405,000 | $410,000 | $350,000 - $500,000 |
| Frisco | $550,000 | $560,000 | $570,000 | $500,000 - $700,000 |
| Georgetown | $375,000 | $380,000 | $385,000 | $325,000 - $450,000 |
| Leander | $385,000 | $390,000 | $395,000 | $340,000 - $470,000 |
| McKinney | $450,000 | $455,000 | $460,000 | $400,000 - $550,000 |
| Prosper | $600,000 | $610,000 | $620,000 | $550,000 - $750,000 |
| Richardson | $400,000 | $405,000 | $410,000 | $350,000 - $500,000 |
| The Woodlands | $525,000 | $530,000 | $535,000 | $450,000 - $650,000 |
Now that we've looked at current prices, let's explore future predictions.
Texas Housing Market Predictions
The average Texas home value is $307,038, up 1.0% over the past year and goes to pending in around 25 days. The median sale price as of March 2024 was $321,667. The median list price for April 2024 was $358,333. Percent of sales over list price and percent of sales under list price are indicators of market competitiveness and pricing dynamics. Percent of sales over list price stood at 16.9% on March 31, 2024. Percent of sales under list price was 62.3% on March 31, 2024.
| Metric | Value |
|---|---|
| Average Texas Home Value | $307,038 (up 1.0%) |
| Median Sale Price (March 2024) | $321,667 |
| Median List Price (April 2024) | $358,333 |
| Percent of Sales Over List Price (March 31, 2024) | 16.9% |
| Percent of Sales Under List Price (March 31, 2024) | 62.3% |
| Median List Price (May 2024) | $360,000 |
| Percent of Sales Over List Price (April 30, 2024) | 17.5% |
| Percent of Sales Under List Price (April 30, 2024) | 61.8% |
| Average Days on Market (April 2024) | 40 days |
| New Listings (April 2024) | 3,200 |
| Inventory Levels (April 2024) | 24,000 homes |
| Mortgage Rates (April 2024) | 4.0% |
Market Adjustments
Experts predict the Texas housing market will adjust in 2024. The rapid sales pace of recent years may ease, leading to a balanced market.
- Inventory is likely to rise as more homeowners list properties due to rising mortgage rates.
- This increase in inventory, coupled with potentially softening demand, could lead to a balanced market with more options for buyers.
- Price drops are predicted, but a crash is unlikely.
- Price growth is expected to moderate, with rates in the 2-4% range over the next few years.
Mortgage Rates
Mortgage Rates from 2020 to 2024
Mortgage rates are significant. The Federal Reserve is expected to raise rates in 2024, though some forecasts suggest hikes may slow in the latter half of the year. A decrease in rates could incentivize more buyers and sellers to re-enter the market, contributing to a balanced environment.
Texas's Appeal
Texas's strong economy, low cost of living, and job opportunities will continue to attract residents. This influx will sustain demand, especially in major metros like Austin, Dallas-Fort Worth, Houston, and San Antonio.
Local Market Variations
Texas' housing market is diverse. Some areas, particularly those with high tech industry concentrations, may cool slightly, while others could see strong growth. Local market data is essential for an accurate picture.
Opportunities for Buyers and Sellers
2024 presents opportunities for strategic buyers and sellers.
- Buyers will have more options and negotiating power.
- Sellers should price properties competitively to attract buyers.
Conclusion: Market Transition
The Texas housing market in 2024 is poised for transition. The fast pace of the recent past may slow, but fundamentals remain strong. Affordability is crucial, and staying informed about local market trends is vital for navigating this market.
Source: https://daltxrealestate.com/texas-housing-market-2024/