Despite Hurricane Harvey’s impact, home prices and sales in Texas reached all-time highs for the third year in a row, according to the 2017 Texas Real Estate Year in Review report, recently released by the Texas Association of Realtors®.
“Despite the devastation of Hurricane Harvey, the Texas housing market had a very strong fourth quarter, helping solidify 2017 as another record-breaking year in Texas real estate,” says Kaki Lybbert, chairman of the Texas Association of Realtors®. “The strong growth in the housing market can be attributed to the sizable influx of residents and job growth across the state in 2017. With more than half a million people moving to the Lone Star State each year, we anticipate the Texas housing market will remain a hotbed for activity.”
Texas home sales jumped 4 percent in 2017, with 336,502 homes sold statewide. Home prices also experienced steady increases in 2017, with the median sales price increasing 6.7 percent from the year prior to $223,990.
“Across the state, we are projecting sales activity to be even more robust in 2018,” says Jim Gaines, chief economist at the Real Estate Center at Texas A&M University. “One of the big drivers will be from first-time homebuyers finding opportunity in the market, with more builders focusing on the entry-level price point and lenders relaxing the requirements for first-time homebuyers. Additionally, the likelihood of more volatile interest rates in 2018 will influence homebuyers to buy now rather than later.”
Housing inventory across the state dipped 0.1 months to 3.1 months of inventory in December 2017. According to the Real Estate Center at Texas A&M University, a market balanced between supply and demand has between 6.0 and 6.5 months of inventory.
Texas homes continued to spend approximately the same length of time on the market in 2017, an average of 57 days, and active listings increased 5.5 percent from 2016 to 2017.
“The Texas housing market remains in such high demand that we continue to see low levels of housing inventory and strong increases in home prices,” Lybbert says. “While that continues to be good news for property owners, Texas REALTORS® will also continue to advocate for affordable options for all Texans.”
Source: Texas Association of Realtors®
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