Texas housing market: Everything you need to know
Texas, known for its affordability, mild winters, and lack of state income tax, has emerged as a top destination for those seeking a lower cost of living. With below-average housing prices and a thriving job market, it’s no wonder that the Lone Star State has been leading U-Haul’s list of growth states for two consecutive years. In addition, two Texan cities, Round Rock and Arlington, have earned spots on Bankrate’s list of best places to live in the U.S.
However, like many parts of the country, rising mortgage rates and slowing home sales are impacting both buyers and sellers. In this blog post, we’ll delve into the current trends and statistics of the Texas housing market to help you make informed decisions.
Texas Housing Market Overview
Given its size, housing trends and prices in Texas vary widely depending on the city and region. For instance, the tech-driven hub of Austin boasts a median home price of $554,500, while a quieter town like Amarillo has a median of $230,000. The statewide median price falls in between, showing a relatively stable year-over-year trend.
Texas Market Trends and Stats
As of August 2023, the median home price across the state stands at $351,500, representing a marginal 0.4 percent increase from the previous year. This is notably lower than the national median price of $407,100. While there has been a 1.2 percent increase in the number of homes for sale, the inventory still falls short of what’s needed for a balanced market.
Homes in Texas tend to stay on the market for an average of 37 days, indicating a relatively steady pace of sales. The sale-to-list ratio sits at 97.8 percent, suggesting that homes generally sell for around 2 percent less than their listed price. Closing costs in Texas typically amount to 1.5 percent of the home’s sale price, totaling around $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 can be advantageous given the high demand, limited supply, and year-over-year price increases, indicating a seller’s market. However, with current high mortgage interest rates, it’s crucial to be realistic about your listing price. Consulting a knowledgeable local real estate agent can be invaluable in determining the optimal price point.
For Homebuyers:
While mortgage rates may be a challenge for buyers, the relatively affordable housing prices in Texas present an opportunity. With less competition in the market, now might be a favorable time to make a purchase. It’s essential to assess your finances thoroughly, use tools like Bankrate’s calculator to determine your budget, and obtain preapproval for a mortgage before beginning your house hunt.
Texas Housing Market Predictions
Despite concerns about high mortgage rates and economic uncertainty, experts believe a housing crash is unlikely. Texas A&M University’s Texas Real Estate Research Center describes the state’s market as “cooling,” with steady price gains and a rise in new construction offsetting a slight decline in existing home sales.
Conclusion: Find a Texas Real Estate Agent
Partnering with an experienced local real estate agent is crucial for navigating the nuances of the Texas housing market. Their expertise can guide you through the process, minimize common pitfalls, and streamline the logistics of a sale or purchase. Prioritize finding an agent whose style and track record align with your preferences and goals.