March 12, 2024 — Austin

While Texas home sales declined nearly 11% in 2023, median prices showed only modest movement up or down in most markets, according to the 2023 Texas Real Estate Year in Review report released today by Texas REALTORS®.

Higher mortgage rates kept some buyers out of the market in 2023, leading to the lowest total sales (327,921) since 2016. The statewide median price of $335,100 moved down 1.4% compared to the previous year, but more metros saw median price increases than decreases.

“While higher mortgage rates kept some buyers on the sidelines last year, that has led to a lot of pent-up demand,” said Jef Conn, chairman of Texas REALTORS®. “Sales have picked up early this year, and this spring is shaping up to be an active market.”

Median Prices Were Mixed in 2023

• Median price declined in 8 metro areas and increased in 17 metros.
• All but 5 metros had less than a 5% change (higher or lower) in median price.
• The biggest drop in median price (-10.4%) occurred in the Austin-Round Rock MSA. However, at $450,000, Austin-Round Rock remained the highest median price in Texas.
• El Paso (7.6%) and McAllen-Edinburg-Mission (6.8%) saw the highest increases in median price.

More Inventory, More Days on Market, and Higher Price Per Square Foot

Months of inventory, a statistic that measures how long it would take to sell the homes currently on the market at the current pace of sales, increased from 2.6 months at the end of 2022 to 3.4 months at the end of 2023. Months of inventory climbed in every market except Midland and Odessa, where it shrank by less than one month. Even with slight increases in housing inventory, the need for more housing in Texas remains a concern. Economists at the Texas Real Estate Research Center have said that a market balanced between supply and demand has between 6 and 6.5 months of inventory.

Homes spent more time on the market across the state except for Midland, which stayed flat. Statewide, homes remained on the market an average of 55 days, 20 days more than in 2022.

Price per square foot edged up 0.1% statewide, with increases in every market except Austin-Round Rock and San Antonio-New Braunfels. El Paso and the Rio Grande Valley had the largest increases in price per square foot.

“Despite headwinds from mortgage rates, Texas real estate sales continued at a healthy pace in 2023,” added Conn. “Market conditions vary by location—even down to the neighborhood level—so it’s always a smart move to work with a REALTOR® who knows your area.”