Real Estate: Texas In Middle Of 'Record-Breaking Summer Selling Season'
NORTH TEXAS (CBSDFW.COM) - Texas home sales reached a new high of 114,772 homes sold in the second quarter of 2021, an increase of 24.7% from the second quarter a year ago, according to the 2021-Q2 Texas Quarterly Housing Report released July 26 by Texas Realtors.
"Texas is in the middle of a record-breaking summer selling season with unprecedented demand for housing," said Marvin Jolly, chairman of Texas Realtors. "Across the state, buyers are having to compete more than ever for houses, leading to a strong increase in home prices."
The median price of a Texas home increased 19.1% to $300,490. Of all homes sold in the second quarter, 30.1% were priced from $200,000 to $299,999, the highest share of sales among all price-class distributions.
"The extremely low level of supply available is holding back sales and pushing up prices, as mortgage rates are still hovering around 3%, the economy is expanding, and ongoing demographic trends continue to support housing demand," said Luis Torres, Ph.D., research economist with the Texas Real Estate Research Center at Texas A&M University. "The limited inventory for homes priced less than $300,000 is particularly distressing and is stressing home affordability."
Housing inventory in Texas dropped to 1.4 months in Q2, a decline from 2.9 months in 2020-Q2. 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.
"With such high demand and rising prices, buyers and sellers are relying on their realtors more than ever to help them navigate this highly competitive market. Many sellers are in the enviable position of getting multiple offers above asking price but are finding there's more to choosing the best offer than simply going with the highest price. Factors such as appraisal waivers, earnest money, and termination options can all come into play. On the other side, buyers are facing the challenge of figuring out how to structure an offer that will stand out as the one the seller accepts," explained Jolly.
