New home sales in the four largest Texas markets faltered in January but were still up 11% year-over-year, according to the monthly report from HomesUSA.
Sales were lower in all four markets – Houston, Dallas, San Antonio and Austin. Together, their combined three-month moving average fell 6%, from 6,083 new home sales in December to 5,710 home sales in January. The four markets account for the vast majority of new home sales in the state.
A slower January is not unusual, not in Texas and not in the new home sector, says HomesUSA broker Ben Caballero. “January sales are often lower than December as builders push hard to close the year with as many sales as possible,” he explained. “Builders were offering discounts, buyer incentives and Realtor bonuses for December closings.”
The Dallas-based brokerage specializes in the new home market and keeps builders’ offerings updated daily on the local multiple listing services in their particular regions.
According to the report, sales were steady in January in Houston and were marginally higher in San Antonio. But they slowed significantly in Austin and Dallas-Ft. Worth.
In terms of sales prices, the average amount was off by $4,000 in the combined four markets, But market-by-market results were mixed.
In Austin, the average new home price tag was down by more than $11,000 for the month It dipped $6,9000 in San Antonio and $6,000 in Houston. But the average rose by some $2,500 in Dallas.
Unfortunately, early indications are that February won’t be a dazzling month for Texas builders, either.
According to the report, pending new home sales, a key measure of future closed deals, were mixed. In San Antonio, the number of pending sales slid from 931 to 903, while they fell from 1,111 to 1,061 in Austin and from 1.822 to 1,797 in Houston. Dallas was the lone outlier, with pending sales rising from 2,107 to $2,142.
Overall, the total inventory of new houses in the state remained relatively flat at 32,350 listings. But that benchmark fell in Austin and San Antonio while remaining even in the other two major markets.
Meanwhile, the number of days new construction remain on the market before finding buyers rose slightly to 103 statewide. But that measure jumped to nearly 130 days in Dallas.
The HomesUSA report covers closed sales recorded in MLSs for the first 10 days of the month. Sales reported by agents after the 10th of the month are not included.
The report features 3-month and 12-month moving averages for six essential market data, including days on the market, sales volume, sales prices, a sales-to-list price ratio, pending sales and active listings. Caballero explained that the three-month moving average indices track market seasonality, while the 12-month moving average removes the seasonality and tracks the longer term trend.
