The Texas housing market continues to heat up as median home prices in Q1 2021 increase 13.4% compared to the same period last year, according to the 2021-Q1 Texas Quarterly Housing Report.
In the first quarter of 2021 median sale price of homes reached $274,300, and 84,464 homes were sold in Texas, jumping 10.1% from a year ago. One-third of homes sold were in the largest percentage of any price range, between $200,000 to $299,000.
"The demand for housing in Texas remained strong despite the winter storm in February and the pandemic," said Marvin Jolly, chairman of Texas Realtors. "With a low supply of homes for sale, though, prices in most areas have gone up significantly, and competition among buyers has increased as well."
Supply is quickly dwindling, the report states. Active listings declined 53% from last year, with now only 43,542 homes for sale at the end of the first quarter of 2021. On average, homes spent 47 days on the market before going under contract, which is 20 days less than the same period last year. The average time it takes a house to sell from the day it hits to market to the day it closes is 87 days, down 13 days from the year before.
However, Louis Torres, research economist with the Texas Real Estate Research Center at Texas A&M University, predicts that eventually, "Rising mortgage rates in 2021 combined with recent rapid price growth will slow demand and, consequently, price growth to more sustainable levels."
"Many homes are attracting multiple offers and selling for thousands above asking price," added Jolly. "Price plays a key role in winning offers, of course, but other considerations can come into play as well. Realtors have been helping their buyers and sellers sort through their options to help them achieve their real estate goals during a market that presents some unique challenges."
Click here to read more from the report.
