Navigating the housing market can be tricky, especially when trends shift unexpectedly. In June, new and existing homes for sale Texas took a significant downturn. This blog post breaks down the key points from the Texas A&M Housing Insight report to help you understand what’s happening in the market and how it might affect your buying or selling decisions.
Home Sales Decline
In June, home sales across Texas dropped by 14.2%, with only 23,791 homes sold. This decline was felt most in Dallas, where sales fell by 16.8%, followed by Houston and Austin with decreases of 14.5%. San Antonio experienced the smallest decline at 13%. Despite this, year-to-date home sales are on par with last year, indicating a broader market stability.
Increase in Active Listings
Interestingly, active home listings in Texas increased from 113,714 to 116,797, a rise of 2.7%. This growth in listings has put downward pressure on home prices, causing them to dip by 1.5% in June. Typically, June is a peak month for home sales, so this decrease is unusual.
Changes in New Listings
The number of new listings saw a notable shift. Austin led the way with a 13.6% decline in new listings, while Houston and San Antonio had smaller reductions of 3.8% and 2.4%, respectively. Dallas had the least change with a 1.2% decrease. This reduction in new listings means there are fewer new homes entering the market, potentially leading to increased competition for available properties.
Days on Market Increase
The average days a home stays on the market in Texas increased from 57 to 59 days. Austin and Houston both saw an increase of three days, making it 68 and 50 days respectively, while San Antonio homes took the longest to sell at 74 days.
Interest Rates and Permits
Even though interest rates dipped slightly in June, with the 30-year fixed mortgage rate falling to 6.92%, this didn’t translate into increased home sales. Meanwhile, building permits for single-family homes dropped significantly by 18.9%, reflecting a slowdown in new home construction. Austin experienced the most substantial decline at 30.1%, with Dallas following at 20.1%. Houston and San Antonio had smaller declines.
Home Prices and Value
The median home price in Texas fell by 1.5% in June. Dallas saw the largest price drop at 1.7%, while Houston, San Antonio, and Austin had declines of less than 1%. However, when looking at the Texas Repeat Sales Home Price Index, which offers a more accurate reflection of price changes, there was a 0.4% month-over-month decrease but a 1.4% year-over-year increase.
What Does This Mean for Buyers and Sellers?
For buyers, the current market offers more choices due to the increased listings, and slightly lower home prices might make it a good time to purchase. However, the competition might be higher due to fewer new listings and a slower pace of new construction.
For sellers, the increased days on the market and falling prices mean it’s essential to price your home competitively and perhaps invest in minor updates to make it more appealing. With more active listings, ensuring your property stands out is crucial.
The Texas housing market in June showed significant changes, with a decline in sales and prices but an increase in listings. Whether you’re considering buying or selling, understanding these trends can help you make informed decisions. At Emily Dieckmann Real Estate, we’re here to guide you through these shifts, ensuring you get the best outcome. Contact us today for personalized advice tailored to your unique situation.
