For the fifth consecutive year, the Texas housing market broke records when it came to number of homes sold and median price, according to the 2019 Texas Real Estate Year in Review report released last week by Texas REALTORS®.
“There is no doubt that the Texas housing market continues to shine, as detailed in this report boasting sustained demand and price appreciation,” said Cindi Bulla, 2020 chairman of Texas REALTORS®. “However, two of every three homes being sold are now more than $200,000, which puts homeownership out of reach for many Texans. This continued challenge is a top priority of Texas REALTORS®, as affordability needs to be addressed before it becomes a crisis.”
Sales and Pricing
Across the state, home sales gained 4% in 2019, with 357,238 homes sold. The increase was 4.4% in 2018.
Median home price also made impressive gains in 2019 with a 3.2% increase from the prior year to $240,000. According to the report, the majority of homes sold in Texas in 2019 fell in the $200,000-$299,000 range.
Jim Gaines, Ph.D., chief economist with the Real Estate Center at Texas A&M University, explained, “2019 was another record-breaking year in Texas real estate. We saw the rates of increase for median price and sales volume normalize. The national housing market is predicted to be one of the strongest parts of the economy this year, and in Texas we’re expecting another record-breaking year as home construction picks up and interest rates remain low.”
Inventory Remaining Low
Despite Texas’ hot housing market, challenges remain. Specifically, inventory of homes for sale continues to struggle to meet demand. Texas housing inventory dropped 0.1 months to 3.1 months of inventory in 2019. According to the Real Estate Center, a market that has a healthy balance between supply and demand has between 6.0 and 6.5 months of inventory.
Days On Market
Homes spent an average of 59 days on the market, one day more than 2018. Active listings statewide increased 5.8% from 2018 to 2019.
Chairman Bulla concluded, “Texas REALTORS® are partnering with cities, counties, state legislators and private entities to address supply solutions and identify homeownership opportunities for Texas consumers in price ranges affordable to our primary labor force.”