The median sales price of homes in Texas reached $274,300 in the first quarter this year, an increase of 13.4% over the same period last year, according to the 2021-Q1 Texas Quarterly Housing Report released Wednesday by Texas REALTORS®.
“The demand for housing in Texas remained strong despite the winter storm in February and the pandemic,” said Marvin Jolly, chairman of Texas REALTORS®. “With a low supply of homes for sale, though, prices in most areas have gone up significantly, and competition among buyers has increased as well.”
During the first quarter of this year, 84,464 homes were sold in Texas, jumping 10.1% compared to the first quarter of 2020. One-third of homes sold were in the $200,000-$299,000 price range, the largest percentage of any price range.
Luis Torres, Ph.D., research economist with the Texas Real Estate Research Center at Texas A&M University, commented, “Depleted inventory is the greatest challenge to Texas’ housing market, pushing up prices at elevated rates as demand remains strong, making it one of the most competitive housing markets for homebuyers since the 2006-07 housing boom. Rising mortgage rates in 2021 combined with recent rapid price growth will slow demand and, consequently, price growth to more sustainable levels.”
Active listings declined 53% from last year and stood at 43,542 homes for sale at the end of the first quarter of 2021. Homes spent an average of 47 days on the market before going under contract, which is 20 days less than the first quarter of 2020. The average total time from hitting the market until the sale closed was 87 days, down 13 days from the previous year. Housing supply in Texas decreased from 3 months in the first quarter of 2020 to 1.3 months of inventory in the first quarter this year.
Chairman Jolly concluded, “Many homes are attracting multiple offers and selling for thousands above asking price. Price plays a key role in winning offers, of course, but other considerations can come into play as well. REALTORS® have been helping their buyers and sellers sort through their options to help them achieve their real estate goals during a market that presents some unique challenges.”