Texas Housing Market
Texas, known for its affordability and pleasant climate, stands as the second-most populous state in the country. Boasting below-average housing prices and mild winters, it has become a prime destination for individuals seeking a comfortable cost of living. Moreover, the absence of state income tax is an added benefit. Over the past two years, Texas has held the top spot on U-Haul’s list of growth states, making it the preferred destination for one-way truck rentals. Bankrate’s recent rankings also spotlight two Texas cities, Round Rock and Arlington, as among the best places to live in the U.S.
Texas Housing Market Overview:
Given its immense size, Texas experiences varying housing trends and prices across its cities and regions. For example, in bustling Austin, where the tech industry is thriving, the median home price is $554,500. Conversely, in the quieter town of Amarillo, the median price is $230,000, but prices are on the rise. The statewide median price falls somewhere in-between, remaining relatively stable year-over-year.
Texas Market Trends and Stats:
As of August 2023, the median home price across the state stood at $351,500, showing a modest 0.4 percent increase from the previous year. This is notably more affordable than the national median price of $407,100. Although there was a 1.2 percent increase in homes available for sale, there was still only a three-month supply of inventory, falling short of a balanced market. The median days on market remained consistent at 37 days. Homes tended to sell for approximately 2 percent less than the listed price, with a sale-to-list ratio of 97.8 percent. On average, Texas closing costs amount to 1.5 percent of the home’s sale price, totaling $5,272.50 for a median-priced home.
Should You Buy or Sell in the Texas Housing Market?
For Home Sellers: Selling a home in Texas currently presents several favorable conditions. High demand, coupled with insufficient supply, and a year-over-year increase in prices, indicate a seller’s market. However, with elevated mortgage rates, buyers may have limited budgets. It is crucial to accurately assess your home’s value and set a reasonable listing price. Enlisting the help of a knowledgeable local real estate agent familiar with your area is invaluable in this process.
For Home Buyers:
Prospective buyers in Texas face a mix of good and bad news. While steep mortgage rates may constrain purchasing power compared to a year ago, the state still offers relatively affordable housing. Moreover, there is currently less competition in the market, as many buyers are adopting a wait-and-see approach. It is imperative to have a clear understanding of your financial situation before entering the market. Utilize resources like Bankrate’s calculator to determine your affordable price range and seek preapproval for a mortgage to establish a realistic budget.
Texas Housing Market Predictions:
Amidst high mortgage rates and economic uncertainties, concerns about a housing crash have emerged. However, both national and local experts remain optimistic. Texas A&M University’s Real Estate Research Center characterizes the state’s market as “cooling,” not crashing. Existing home sales may be tapering, but new construction is on the rise, and price gains are steady, if modest.
Conclusion:
In navigating the dynamic Texas housing market, partnering with an experienced local real estate agent is paramount. These professionals possess in-depth knowledge of their market and can guide you through the buying or selling process efficiently. Before making a decision, ensure you thoroughly vet potential agents, considering their experience, working style, and client successes. Building a relationship based on trust and rapport is essential for a successful real estate transaction.