The Texas housing market slowed slightly following a strong summer sales season, according to the 2021-Q3 Texas Quarterly Housing Report released today by Texas REALTORS®. The number of homes sold across the state declined 3.5% in the third quarter of 2021 compared to the previous year. This is the first time quarterly homes sales in Texas have decreased year-over-year since the second quarter of 2020.
“Although we’re seeing a slight decline in homes sold from the same period a year ago, it’s important to remember we’re comparing to 2020’s record-breaking numbers,” said Marvin Jolly, chairman of Texas REALTORS®. “Across the state, we’re still experiencing strong demand for housing, and buyers are moving to Texas from all over the nation.”
While the total number of Texas homes sold dipped to 115,272, the median sales price of $310,000 represents a 16.9% increase compared to the third quarter of 2020. Of all homes sold in the third quarter, 29.5% were priced from $200,000 to $299,999, the highest share of sales among all price-class distributions.
Luis Torres, Ph.D., research economist with the Texas Real Estate Research Center at Texas A&M University, commented, “The housing frenzy due to the pandemic has possibly peaked. Home prices and homes sales are beginning to slow. In addition, months of inventory and home listings have reached a trough and are now increasing. Still, for the remainder of 2021, the housing market will be characterized by strong demand with low inventories accompanied by strong price growth, albeit at a slower rate.”
Housing inventory in Texas decreased to 1.6 months in the third quarter, a decline from 2.3 months in the third quarter of 2020. According to the Texas Real Estate Research Center at Texas A&M University, a market balanced between supply and demand has between 6.0 and 6.5 months of inventory.
Chairman Jolly concluded, “Our housing supply remains stretched, but we’re not seeing as many properties with a frenzy of offers above asking price like earlier in the year. Regardless, buyers in many markets still may find it challenging to get their offers accepted. We encourage anyone looking to buy or sell a home to work with a Texas REALTOR® to help you navigate the local real estate market.”