Texas new home market is “finding its footing” as sales peak

HomesUSA.com reports Days on Market, Sales Prices, Pending Sales stabilizing HomesUSA.com reports Days on Market, Sales Prices, Pending Sales stabilizing The Texas new home market is “finding its footing” as sales peak with Days on Market, average prices, and pending sales all stabilizing, according to the monthly HomesUSA.com New Home Sales Report released today by its author, Ben Caballero, the nation’s top-ranked real estate agent and HomesUSA.com CEO. The HomesUSA.com New Home Sales Report uses Multiple Listing Service data – the most complete, current, and accurate information – from the Realtor Associations of North Texas, Houston Austin, and San Antonio. The 3-month moving average of new home MLS sales in Texas’ four largest markets for August was 5,450 versus 5,649 new homes sold in July. “Considering the interest rate headwinds and market seasonality, Texas’ new home market is finding its footing,” said Caballero. “By every measure – Days on Market, sales activity and average prices – new homes numbers are stabilizing yet remain impressive,” he added. While the overall new home price average among the 4 largest Texas markets was $2,000 lower in August than July, Caballero noted prices have shown stability throughout 2023. In Texas' top four markets, last month's 3-month moving average new home price was $460,060 versus $462,363 in July. Dallas-Ft. Worth's 3-month moving average new home price in August was up slightly, $500,320 versus $499,115 in July. Austin’s average new home price last month also was higher, $539,095 versus $536,842 in July. Last month's 3-month moving average of new home prices in Houston and San Antonio were lower: Houston’s average new home price was $424,368 versus $427,191 in July, while San Antonio’s average price of a new home in August was $372,120 versus $379,374 in July. “As the Texas economy continues to outpace the nation, builders continue to support Texas’ growth with great new homes, despite the economic and municipal obstacles in their path,” said Caballero. According to the HomesUSA.com New Home Sales Index, the pace of new home sales picked up in San Antonio, Houston and slightly in Austin as Days on Market improved. New homes stayed on the market in Dallas a bit longer, which posted a higher DOM average for August. Overall, the DOM in Texas has been trending stable. The average number of days to sell a new home in Texas’ four major home markets in August was 105.58 days versus 106.67 days in July. The DOM in Houston last month was 99.18 versus 102.97 days in July. Austin’s DOM in August was 93.70 versus 94.76 in July, and the DOM in San Antonio last month was 91.47 versus 97.81 days in July. The DOM in Dallas-Ft. Worth last month was higher at 124.06 versus 119.94 days in July. Pending new home sales in Texas’ four largest markets were down again last month. The 3-month moving average of pending new home sales in August was 6,096 versus 6,473 in July. Active listings continue to stabilize, with the 3-month moving average for active listings of new homes in Texas' top four markets last month totaling 27,305 versus 26,662 new homes in July. HomesUSA.com is sharing its New Home Sales Report and New Home Sales Index before the Commerce Department releases its nationwide New Residential Sales Report for August, set for Tuesday, September 26, 2023, at 10:00 am Eastern. The HomesUSA.com monthly report is based on closed sales recorded inside the MLSs by the 10th day of the following month. Sales reported late by agents are not included. The report features 3-month and 12-month moving averages for six essential market data, including Days on Market, sales volume, sales prices, a sales-to-list price ratio, pending sales, and active listings. Caballero explained the 3-month moving average indices track market seasonality, while the 12-month moving average removes the seasonality and tracks the longer trend. Days on Market – New Homes in Texas (Exclusive Data) The HomesUSA.com New Home Sales Index showed the 3-month moving average of Days on Market decreased in three of the four major new home markets in August. Houston’s DOM was 99.18 days versus 102.97 days in July. In Austin, the DOM decreased to 93.70 days versus 94.76 days in July. In San Antonio, the DOM was 91.47 days versus 97.81 days in July. Dallas-Ft. Worth was the exception, as the DOM increased to 124.06 days from 119.94 days in July. Caballero points out that new homes have significantly higher Days on Market or DOM than existing homes because most are listed while under construction. (See Chart 1: Texas New Homes Days on Market) Texas New Home Sales Data Based on all available local MLS data, total new home sales in three of the four major new home markets were lower last month, according to the 3-month moving average. In Dallas-Ft. Worth, new home sales decreased to 1,885 versus 1,975 in July. In Houston, August’s total sales were 1,760 versus 1,875 in July. In Austin, new home sales also decreased in August to 876 versus 918 in July. San Antonio was the anomaly, as new home sales in August rose to 929 versus 882 in July. (See Chart 2: Texas New Home Sales) Texas New Home Prices The average price of new homes in two of the four major new home markets were higher last month. In Dallas-Ft. Worth, the 3-month moving average price for new homes increased in August to $500,320 from $499,115 in July. Austin's 3-month moving average price also rose in August to $539,095 from $536,842 in July. In Houston, the average new home price was lower in August at $424,368 versus $427,191 in July. In San Antonio, the average new home price also decreased in August to $372,120 versus $379,374 in July. (See Chart 3: Texas New Home Prices) Texas Sales-to-List Price Ratio Cumulative new home sales appear to be stabilizing near 100 percent of the asking price. The 3-month moving average of the sales-to-list price ratio for August was 97.98 versus 97.97 percent in July. Dallas-Ft. Worth’s ratio was 98.26 versus 98.17 percent in July. In Houston, the ratio was 98.35 versus 98.30 percent in July. In Austin, the sales-to-price ratio in August was 97.79 versus 97.53 percent in July. San Antonio's ratio in August was 96.91 versus 97.34 percent in July. (See Chart 4: Texas Sales-to-List Price Ratio) Texas Pending New Homes Sales Data Based on local MLS data, pending new home sales decreased in all four Texas major markets last month. Data shows pending sales in August were 6,096 versus 6,473 in July. In Dallas-Ft. Worth, pending new home sales last month were 2,200 versus 2,372 in July. In Houston, pending new home sales in August decreased to 1,839 versus 1,938 in July. In Austin, pending new home sales in August were 1,171 versus 1,233 in July. In San Antonio, pending sales last month were 886 versus 930 in July. (See Chart 5: Texas Pending New Home Sales) Texas Active Listings for New Homes Data from the four largest Texas MLSs also shows the 3-month moving average for active listings increased in August to 27,305 versus 26,662 in July. Last month, all four Texas major markets posted higher active listings. Dallas-Ft. Worth's active listings in August were 6,050 versus 5,814 in July. Last month's active listings in Houston were 11,342 versus 11,162 in July. In Austin, active listings in August increased to 5,405 from 5,294 in July. In San Antonio, active listings increased in August to 4,508 versus 4,393 in July. (See Chart 6: Texas Active Listings and Chart A: 12-Month Moving Averages) What does all this mean for you?  If you are reclocating to San Antonio or moving up to new home, now is great time to buy a newly-built home. And if you're a military servicemember, you can get additional benefits and low (or even no-) downpayment. As the San Antonio New Construction and Military Homebuying Specialists, we want to help you get into the home you deserve. Call us today and let's talk. *Note: Texas data denotes a combination of its four largest new home markets – Houston, Dallas-Ft. Worth, Austin and San Antonio, which comprises the vast majority of new home sales and MLS data statewide. Credit to original publisher Ben Caballero and HomesUSA.com®    

View more

Housing Market Forecast for the Rest of 2023 [INFOGRAPHIC]

Some HighlightsWant to know what experts say will happen in the rest of 2023? Home prices are already appreciating again in many areas. The average of the expert forecasts shows positive price growth.Where mortgage rates go for the rest of the year will depend on inflation. Based on historical trends, rates are likely to ease as inflation continues to cool.Even though low inventory continues to be a challenge, experts project 5 million homes will still sell this year. That pace should pick up if rates come down.

View more

Key Housing Market Trends [INFOGRAPHIC]

Some HighlightsIf you’re considering buying or selling a home, you’ll want to know what’s happening in the housing market.Housing inventory is still very low, prices are climbing back up, and homes are selling fast when priced right.Connect with a real estate agent if you want more information about your local area and what the trends mean for your plans to buy or sell.

View more