The Texas housing market is booming with a record-breaking 114,772 homes sold in the second quarter of 2021, increasing 24.7% year-over-year, according to the Texas Quarterly Housing Report released by Texas Realtors.
The median price for homes in Texas is $300,490, increasing 19.1% in the second quarter of 2021. Almost a third (30%) of homes sold in the second quarter were priced from $200,000 to $299,999, the highest share of sales among all the price tiers.
"Across the state, buyers are having to compete more than ever for houses, leading to a strong increase in home prices,” said Marvin Jolly, chairman of Texas Realtors.
Housing inventory in Texas dropped to 1.4 months in the second quarter of 2021, a major drop from 2.9 months in the second quarter last year. The Texas Real Estate Center stated that a market balance between supply and demand has between 6 to 6.5 months of inventory.
Research economist, Luis Torres, Ph.D., with the Texas Real Estate Research Center at Texas A&M University, “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. The limited inventory for homes priced less than $300,000 is particularly distressing and is stressing home affordability.”
Chairman Jolly added, “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. There's no one better than a Texas Realtor to guide buyers and sellers through these scenarios.”
