Texas home sales reached a new high in the first quarter of 2017, despite rising prices.
According to a recent report from The Texas Association of Realtors, home sales in the Lone Star State increased nearly 5 percent in Q1 2017 compared with Q1 2016. According to the report, median home sales prices statewide rose 9.4 percent to $213,325.
“Texas leads the country in new home development, but its rapid pace of housing development is still not enough to keep pace with population growth and housing demand throughout the state,” Dr. Jim Gaines, chief economist with the Real Estate Center at Texas A&M University, said in the report. “As Texas home prices and U.S. interest rates are projected to increase in 2017, now is an opportune time to buy a home in Texas.”
Also noteworthy, real estate agents sold a record 68,420 homes in the first three months of 2017.
According to an article from the Dallas Morning News, the biggest price increase among the major Texas markets was in the Dallas-Fort Worth area, where median prices were 13.3 percent higher than in first-quarter 2016. The number of home sales in the Dallas-Fort Worth metro area handled by real estate agents increased 2.4 percent from the first quarter of 2016.
Houston posted the most significant gain in sales among the major Texas markets, up 6.7 percent from the first quarter of 2016. Houston home prices rose 5.8 percent.
Across the entire state, the number of homes listed for sale with real estate agents rose six percent on a year-over-year basis.
In Dallas-Fort Worth specifically, the number of homes on the market rose more than 7 percent and the average sale time was 43 days on the market.
The median sales price in the Dallas-Fort Worth area was $243,500 in the first quarter, according to the Realtors association.
What This Means for the Texas Real Estate Market
With home sales continuing to climb despite higher price growth, it’s likely that the Texas housing market will maintain its strength throughout the rest of the year. However, for those who are thinking of buying a home for the first time in Texas, it may be better to act quickly, before rising demand pushes Texas home prices higher.
If you’re thinking of selling your Texas home, this year would likely be a great time to do so. Home values are on the rise, thanks to higher levels of demand. If you own a modest starter home, you’ll likely be in an even better position to sell quickly, as these homes are among the most in-demand properties as more first time buyers enter the market.