August 01, 2013 — Austin
In the second quarter of 2013, demand for Texas homes surged again and the median price for homes in the state hit another all-time high, as reported in the Texas Quarterly Housing Report released today by the Texas REALTORS®.
“The first half of the summer selling season has been very busy for Texas real estate,” said Shad Bogany, chairman of the Texas REALTORS®. “Demand for homes steadily increased throughout the state, which has prompted competition for properties and is boosting prices.”
On a statewide basis, 79,760 single-family homes were sold in Texas in the second quarter of 2013. That is 17.78% more than the same quarter of last year and the most homes sold in a single quarter since the Texas Quarterly Housing Report began in 2009. In addition, the surge in demand was widespread around the state, with 43 of the 47 markets included in the report showing an increase in sales compared to last year.
Prices for Texas homes were strong in the second quarter of 2013 as well, continuing the steady increase seen in recent years and hitting all all-time high for the quarter. Specifically, the median price in 2013-Q2 was $177,300, up 9.98% from the prior year, and the average price increased 10.44% from the prior year to $235,075 this quarter. Those are the highest figures for median and average price ever seen in Texas real estate.
Jim Gaines, PhD., economist with the Real Estate Center at Texas A&M University, commented, “Nationally, home values are increasing at around 10%, which is similar to Texas. However, that national trend is being driven primarily by markets that dropped significantly in value during the downturn, so it’s really an ‘echo-boom.’ We didn’t have those big price drops in Texas, so to see 10-% price increases on top of properties that held more value in recent years means we’re seeing even more significant growth in Texas.”
In the wake of these increases in demand and price, the inventory of Texas homes continued to shrink. For 2013-Q2, the Texas market featured 4.1 months of inventory, which is 30.5% less than the same quarter of last year, when inventory was 5.9 months. The Real Estate Center cites 6.5 months as a market in which the supply of homes is balanced with demand, so that figure indicates strong market demand for homes.
Gaines explained, “With inventory shrinking so rapidly for several quarters now, you’d expect to see more dramatic increases in price. However, I think we may be seeing a situation where Texas has ‘just-in-time’ housing inventory. Competition for properties is so fierce that homes are selling within days, or even hours, so they’re never recorded as ‘inventory,’ but rather are immediately recorded as a sale.”
Chairman Bogany continued, “In a market as competitive as Texas right now, it’s crucial for buyers and sellers to have current, accurate information. It’s no longer uncommon for buyers to offer bids above listing prices and for sellers to receive multiple offers on a property. To make sound, timely decisions, you need the best, most accurate data available, which Texas REALTORS® can provide. That helps sellers earn top-dollar for their properties and helps buyers to capture the home they want.”
The Texas Quarterly Housing Report is issued four times per year by the Texas REALTORS® with multiple listing service data compiled and analyzed by the Real Estate Center at Texas A&M University. To view the report for 2013-Q2 in its entirety, visit TexasRealEstate.com.