For four years running, the Texas housing market has broken the record for home sales and median price.
According to the 2018 Texas Real Estate Year in Review report released by Texas REALTORS® in late February, home sales across the Lone Star State increased 1.7 percent in 2018 with 344,030 homes sold. Median home prices increased 4.4 percent from the year prior to $232,900.
While both measures saw increases in 2018, home sales and median price each saw lower gains than they had in years past. The gain in home sales was smaller than the 4.1 percent, 4.5 percent and 4 percent increases of 2017, 2016 and 2015, respectively.
For the median price gains, 2018’s increase was smaller than the 6.2 percent, 7.7 percent and 7.1 percent gains of the past three years.
“The unprecedented real estate market activity in Texas in 2018 is a testament to the state’s business-friendly atmosphere and strong economy,” said Tray Bates, 2019 chairman of Texas REALTORS®. “It’s worth noting, though, that the rate of sales and price increases has cooled off a bit compared to prior years.”
Texas housing inventory also increased, gaining 0.2 months to 3.3 months of inventory in 2018. According to the Real Estate Center at Texas A&M University a market balanced between supply and demand has between 6 and 6.5 months of inventory.
The length of time Texas homes spent on the market stayed the same from 2017 to 2018, averaging 58 days. Active listings statewide increased 1.4 percent from 2017 to 2018.
Chairman Bates concluded, “The availability of entry-level homes priced under $200,000 has decreased 13.5 percent since 2015. Due to high demand for housing in most areas of Texas, our inventory levels are critically low, and housing affordability remains a challenge. Texas REALTORS® will continue to work with state leaders in this current legislative session to support measures that make homeownership attainable for more Texans. REALTORS® will also continue to protect Texans’ property rights and support all facets of the real estate industry as a smart investment for Texans for years to come.”