The Texas Association of Realtors, or TAR, recently reported continued strength in the Texas real estate. According to TAR, so far this year and especially the last few months, this is the strongest summer selling season in the history of Texas real estate. That’s a strong statement but according to the quarterly report released by TAR, it’s true. The most recent set of data comes from the second quarter of this year. In the second quarter of 2016 there were 91,418 homes sold representing a 4.4% increase compared to the same period last year and also the highest volume of Texas residential home sales in history.
In addition, nearly half of the homes sold were priced less than $200,000 which helps boost the overall housing market. Homes sold under $200,000 are in the target range for most first time home buyers which help ignite residential real estate sales overall, allowing sellers to move up to the next home or buy a retirement home. Texas never really participated in the housing bubble of the last decade as many other states experienced. Interest rates are also helping buyers qualify for the homes they want with rates still very near the historic lows we saw in late 2012. And most all areas are reporting a healthy real estate market. Let’s take a closer look at the major metropolitan areas in the state.
In the Austin market, it was the 2015 summer selling season that saw historic numbers. The Austin Board of Realtors reported single family home sales in 2016 declined last month from the same period last year. Yet the median price for a single family home in the greater Austin area actually climbed to $285,000. Home sales on the lower end of the scale, those priced below $200,000 were hard to find. The Austin housing market has seen median home values increase year after year and is pricing many first time home buyers out of the market and must look at outer suburban areas for homes priced in their range. In Austin proper, the median home value is even higher at $385,000. On the higher end, homes priced above $1M, the median home price was $1,250,000, a slight decline of 3.4% compared to the same period last year.
The Dallas market is also seeing strength and it’s definitely a seller’s market with as supply isn’t keeping up with the demand. A reported 600 people move to the Dallas-Ft. Worth metroplex each day and the first time home buyers, like Austin, are having a difficult time finding the home they want in the area they’d like to live. Today, the median home price is around $210,000, up from $194,000 last year. It’s a double-edged sword in the Dallas market. Seller’s are enjoying the market while buyers, especially first time buyers, not so much. The luxury market in Dallas is experiencing a seller’s market as well.
Houston is experiencing somewhat of a see-saw in home sales so far this year. In July, there were 7,204 homes sold compared to 7,898 of last year, an 8.8% drop. However, due to a relatively strong showing for the first two quarters of this year, 2016 is still showing a 1.0% gain. Much like Austin, while unit volume was down, prices are up. According to the Houston Association of Realtors, the median home price rose 4.1%, the second highest price in history at $230,000. In the luxury market, as the price of oil appears to have stabilized somewhat, year over year home sales for homes priced above $750,000 were nearly unchanged so far in 2016.
According to the San Antonio Board of Realtors, the median home price jumped 6.0% to $219,000, very near the 7.0% statewide median jump. And while the average price for a home increased, the pace is slowing. The inventory however is still relatively low, keeping the advantage in the seller’s camp. The most recent data reports there is now approximately 3.9 months of homes listed for sale. San Antonio still enjoys a solid first time home buyer market compared to other major metropolitan areas and a recent study reported San Antonio as the eighth-best city for first time home buyers with an average $80.50 per square foot.
Jumbo mortgage options continue to expand for luxury home buyers in Texas. In fact some options are now available in Texas up to 95% financing. Additionally, expanded availability on conventional and first time home buyers financing help strengthen the housing markets. Mortgage interest rates have also remained very low throughout the year.
Buyers that have questions about financing are encouraged to reach out to us by calling 800-871-2636, or just submit the Request Contact form at the top of this page for quick service.