Texas home buyers face tighter inventory as home sales skyrocket during the third quarter of 20202. The number of Texas homes that sold between July and September increased by nearly 19% when compared to the same timeframe last year, according to the 2020-Q3 Texas Quarterly Housing Report, released October 21 by Texas REALTORS®.
“The Texas real estate market’s resiliency, especially in the middle of a pandemic crisis, is nothing short of incredible, though our housing supply is still critically low,” said Cindi Bulla, chairman of Texas REALTORS®. “We are hard at work looking for the supply solutions necessary to keep our market healthy and make the American dream of homeownership attainable to every Texan.”
Texas Home Sales Get a Boost in Q3
Home sales increased by 18.4%, with 119,642 homes sold in the third quarter of 2020. Across the Lone Star State, the median home price went up 8.6% to $266,000. Most of the homes sold during this time were priced between $200,000 and $299,999.
Jim Gaines, Ph.D., chief economist with the Real Estate Center at Texas A&M University, commented, “The Texas housing market experienced a strong push-through of demand from the second quarter into the third quarter. Active listings saw a sharp drop with many sellers hesitating to list their property in the middle of a pandemic. However, as the economy and employment numbers continue to recover, we anticipate end-of-year sales figures will be higher than 2019.”
Inventory Declines Across Texas Housing Market
As demand grew for homes in Texas during Q3 2020, inventory of homes for sale dropped sharply. Active listings declined 32.4% to 71,569 listings.
Although Texas homes are in high demand, they are actually spending a little longer on the market than they did a year ago. Texas homes for sale spent an average of 52 days on the market, two days more than the third quarter of 2019.
The state’s housing inventory dropped 1.3 months to 2.3 months of inventory. According to the Real Estate Center at Texas A&M University, a well-balanced market, where supply and demand are mostly even, has between 6.0 and 6.5 months of inventory.
Bulla concluded, “Although our real estate market remains strong, the data in this report shows there are still long-term implications regarding this housing shortage that need answers, and finding those solutions will remain a major focus for Texas REALTORS® at the state and local level for 2020 and beyond.”
Texas Home Financing
As home sales increase across the state, the demand for mortgages has also increased. Today’s mortgage marketplace offers a variety of home financing products to suit many different types of home buyers. Whether you’re looking for something with a low money down option, a jumbo mortgage for high-value properties, a home renovation loan, or something else, consider working with The Decker Group of First United Mortgage Group. We offer a wide selection of Texas home loans at competitive rates. Connect with us today to learn more or browse our mortgage programs online.