Yesterday, the Texas Association of REALTORS® released the 2013-Q1 edition of the Texas Quarterly Housing Report, showing surging demand for Texas homes at the start of the year as well as rising prices and shrinking inventory.
Fueled by Texas’s population and job growth, the report bodes well for the summer selling season. 2012 was a strong year for Texas real estate and, based on these first-quarter results, 2013 looks to be even stronger. Everyone has heard a lot about the growth of Texas and now we’re starting to really see the impact on our real estate market.
As featured in the report, 53,937 single-family homes were sold in Texas in the first quarter of 2013, which is 17.53% more than the same quarter of the prior year. Of the 48 markets included in the report, 40 markets featured increases in sales, indicating the surge is broad-based throughout the state. The median price for Texas homes in 2013-Q1 was $158,000, which is 7.04% more than the first quarter of 2012. In the same timeframe, the average price was $204,718 – that’s 6.87% more than 2012-Q1.
The median price for Texas homes has steadily increased, exceeding or matching the price of the prior year every quarter since the Texas Quarterly Housing Report began in 2009. “Historically, the median price for Texas homes has increased about four percent each year and we usually see the biggest jump in price between the first and second quarters,” said Jim Gaines, Ph.D., economist with the Real Estate Center at Texas A&M University. “So, with price increases already in the range of seven percent in the first quarter, we could see Texas homes increase in value significantly this year.”However, Gaines also offered a strong caution, “We’ll only realize our potential for increased sales volume if more sellers enter the market and start listing their properties, increasing the inventory of homes for sale."
In first quarter 2013, the market featured 4.2 months of inventory, which is 1.7 months less than the prior year. That is significantly less than the 6.5 months of inventory cited by the Real Estate Center as a market in which the supply of homes is balanced with demand. There is clearly demand for Texas homes and rising prices are encouraging more homeowners to consider listing their properties.
The Texas Quarterly Housing Report is issued four times per year by the Texas Association of REALTORS® with multiple listing service data compiled and analyzed by the Real Estate Center at Texas A&M University.