Little surprise that, for the fifth consecutive year, the Texas housing market broke records in terms of the number of homes sold and median price, according to the 2019 Texas Real Estate Year in Review report released today by Texas Realtors. However, as the price of homes increases, affordability has become an issue.
“There is no doubt that the Texas housing market continues to shine, as detailed in this report boasting sustained demand and price appreciation,” said Cindi Bulla, 2020 chairman of Texas Realtors. “However, two of every three homes being sold are now more than $200,000, which puts homeownership out of reach for many Texans. This continued challenge is a top priority of Texas Realtors, as affordability needs to be addressed before it becomes a crisis.”
Home sales across the state increased 4% in 2019, with 357,238 homes sold. This is a smaller increase than the 4.4% increase in 2018.
Median home price increased 3.2% from the prior year to $240,000. Price class distribution showed that the largest percentage of homes sold across the state (33.1%) fell in the $200,000-$299,000 price range.
In the Dallas-Fort Worth-Arlington (DFWA) metropolitian statistical area (MSA), the media price of a home in 2019 was $273,000, up 3% from 2018. The number of homes sold in the DFWA MSA in 2019 also increased over 2018, jumping 3% to 103,261. Homes for sale in the DFWA MSA did spend more time on the market in 2019 than 2018, up 8 days to 50 days. In Tarrant County, the price class distribution showed that the largest percentage of homes sold (43%) were in the $200,000-$299,000 price range.
Jim Gaines, Ph.D., chief economist with the Real Estate Center at Texas A&M University, explained, “2019 was another record-breaking year in Texas real estate. We saw the rates of increase for median price and sales volume normalize. The national housing market is predicted to be one of the strongest parts of the economy this year, and in Texas we’re expecting another record-breaking year as home construction picks up and interest rates remain low.”
Housing inventory across the state decreased 0.1 months to 3.1 months of inventory in 2019. According to the Real Estate Center, a market balanced between supply and demand has between 6.0 and 6.5 months of inventory.
Homes spent an average of 59 days on the market, one day more than 2018. Active listings statewide increased 5.8% from 2018 to 2019.
Bulla concluded, “Texas Realtors are partnering with cities, counties, state legislators and private entities to address supply solutions and identify homeownership opportunities for Texas consumers in price ranges affordable to our primary labor force.”