Texas home sales, prices continue strong gains in the second quarter of 2016
This press release was previously published on the TAR site.
Texas home sales and prices experienced strong gains in the second quarter of 2016, according to the 2016-Q2 Texas Quarterly Housing Report released today by the Texas Association of REALTORS®.
“The last few months have been one of the strongest starts to the summer selling season in the history of Texas real estate,” said Leslie Rouda Smith, chairman of the Texas Association of REALTORS®. “Texas homes of all types and price classes are in high demand. This is especially true for homes priced under $200,000, which are often preferred by first-time homebuyers but also in shortest supply across the state.”
According to the report, 91,418 homes were sold in Texas in the second quarter of 2016, a 4.4% increase from 2015-Q2 and the highest volume of Texas home sales ever. More than 45% of homes sold in the second quarter were priced less than $200,000, while nearly 47% were priced between $200,000 and $500,000.
Home prices continued to rise amidst strong population growth and low housing inventory throughout the state, with the median price for Texas homes increasing 7.5% year-over-year to $215,000 in 2016-Q2.
Housing inventory remained statistically unchanged from 2016-Q1 at 3.7 months, a level that indicates a seller’s market. The Real Estate Center at Texas A&M University estimates that a monthly housing inventory between 6.0 and 6.5 months is a level at which the supply and demand for homes is balanced.
Jim Gaines, Ph.D., chief economist at the Real Estate Center at Texas A&M University, added, “While some local markets are still being impacted by declines in the energy sector and housing affordability challenges, overall the Texas housing market continues to perform very well. Flattening declines in statewide housing inventory and an increasing number of homes on the market indicate that Texas could finally be moving towards a more balanced housing market, although it will take some time to do so.”
Active listings rose 4.1% year-over-year in 2016-Q2 to 98,495 active listings. Texas homes also continued to spend less time on the market, averaging 54 days, which is one day less compared to the same quarter of 2015.
Chairman Smith concluded, “The Texas Association of REALTORS® continues to advocate for policies that make homeownership more affordable and attainable for more Texans. Most recently, TAR partnered with the National Association of REALTORS® to support the Housing Opportunity Through Modernization Act as it gained unanimous support in Congress. Nearly 14,000 Texas REALTORS® helped move this important legislation forward to provide more affordable options for Texas homebuyers.”
View the complete Texas Quarterly Housing report.