Texas new home sales market shows resilience despite a drop in August
DALLAS, Sept. 19, 2024 (GLOBE NEWSWIRE) -- While Texas new home sales were lower last month in its four biggest markets, home sales are up 6% from a year ago, home prices are flattening, and inventory was up 2% from the prior month, according to the newest monthly Texas New Home Sales Report released today by HomesUSA.com and its founder and CEO, Ben Caballero, the nation's top-ranked real estate agent.
The HomesUSA.com New Home Sales Report uses Multiple Listing Service data – the most comprehensive, current, and accurate information – from the Realtor Associations of North Texas, Houston, Austin, and San Antonio.
“Texas new home sales were a bit lower in August, but since the beginning of the year, sales are higher, showing how resilient our real estate market is,” said Caballero. “If the recent improvements in mortgage rates continue, we should see a bump in Texas new home sales that could counter the traditional seasonal slowdown experienced during the latter months of the year,” he added.
According to August MLS data from Dallas-Ft. Worth, Houston, Austin, and San Antonio, the new home sales' pace flattened overall as the 3-month average of Days on Market (DOM) was 97.05 days versus 98.27 days in July. Houston and San Antonio DOM decreased, Austin DOM was flat, and Dallas-Ft. Worth DOM rose by more than two days.
The number of new home sales in Texas’ four largest markets posted a 3-month average of 5,803 in August versus 5,977 in July, with Dallas-Ft. Worth, Houston, Austin, and San Antonio each posting relatively flat sales in August. However, the 3-month average new home sales last year in August was significantly lower, totaling 5,450.
Good news for home buyers: the 3-month average new home price in the combined top four markets was flat in August and more than $27,000 lower than in August last year. Houston’s 3-month average home prices were lower month-over-month ($402,741 versus $404,253) and San Antonio was also lower ($340,755 versus $343,616). Austin’s average price was relatively flat ($494,920 versus $494,302) and Dallas-Ft. Worth once again posted a higher average sale price of $489,872 last month versus $487,347 in July.
The Texas new home Inventory continues to rise as the 3-month average of active listings reveal Texas’ four largest new home markets was up 2% last month – 31,983 versus 31,358 in July. Year-over-year active listings are up almost 17% from 27,305 in August 2023.
Pending sales, an indication of future sales, fell again last month. The 3-month average of pending sales in the four largest Texas new home markets in August was 6,575 versus 6,623 in July. It is the 4th straight month pending sales declined in these markets.
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 Wednesday, September 25, 2024, at 10:00 a.m. Eastern time.
The HomesUSA.com monthly report covers closed sales recorded in MLSs by the 10th day of the following 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 DOM, 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 Flatten – New Homes in Texas (Exclusive Data)
The HomesUSA.com New Home Sales Index showed the August 3-month moving average of DOM flattened in Texas’ four major new home markets. Dallas-Ft. Worth was the anomaly, as the DOM rose to 121.14 days versus 118.34 days in July. Houston’s DOM dropped to 88.12 days versus 91.21 days in July. In Austin, the DOM in August was 87.53 days versus 87.38 days in July. In San Antonio, the DOM decreased to 79.71 days versus 86.16 days in July. New homes have significantly higher DOM than existing homes because most new homes are listed while under construction. (See Chart 1: Texas New Homes Days on Market)
Texas New Home Sales Decrease
Based on all local MLS data, the most reliable and current source of all home sales activity, total new home sales decreased in Texas’ four largest new home markets last month. The August 3-month moving average of new home sales in Dallas-Ft. Worth was 1,862 versus 1,902 in July. In Houston, total new home sales dropped to 1,970 versus 2,053 in July. Austin's new home sales last month were 871 versus 900 in July. In San Antonio, new home sales in August were lower at 1,100 versus 1,121 in July. (See Chart 2: Texas New Home Sales)
Texas New Home Prices Remain Flat
The average prices of new homes remained flat in the four major new home markets in Texas last month. In Dallas-Ft. Worth, the 3-month moving average price for new homes in August was higher at $489,762 versus $487,347 in July. In Houston, the average new home price in August was lower at $402,741 versus $404,253 in July. In Austin, the 3-month moving average price in August was $494,920 versus $494,302 in July. San Antonio's average new home price was also lower in August at $340,775 versus $343,616 in July. (See Chart 3: Texas New Home Prices)
Texas Sales-to-List Price Ratio Remains Stable
Cumulative new home sales remain slightly lower than 100 percent of the asking price. The combined 3-month moving average of the sales-to-list price ratio in Texas’ four largest markets for August was 97.47 versus 97.98 percent a year ago and 97.60 percent in July this year. Dallas-Ft. Worth’s ratio in August was 97.78 versus 98.26 percent last August and 97.88 percent in July this year. In Houston, the ratio in August was 96.62 versus 98.35 percent last August and 96.92 percent in July this year. In Austin, the sales-to-price ratio in August was 97.60 versus 97.79 percent last August and 97.71 percent in July this year. San Antonio's ratio in August was 98.33 versus 96.91 percent a year ago and 98.29 percent in July this year. (See Chart 4: Texas Sales-to-List Price Ratio)
Texas Pending New Homes Sales Decline
Based on local MLS data, the average 3-month pending new home sales continue to decline in two of the four largest Texas new home markets. The combined four-market average in August totaled 6,575 versus 6,623 in July. In Dallas-Ft. Worth, pending new home sales last month were 2,281 versus 2,335 in July. In Houston, pending new home sales in August were 1,957 versus 1,947 in July. In Austin, pending new home sales in August were 1,244 versus 1,272 in July. In San Antonio, pending new home sales were higher last month at 1,093 versus 1,069 in July. (See Chart 5: Texas Pending New Home Sales)
Texas Active Listings for New Homes Increase
Active new home listings continue to increase in all four of the largest Texas new home markets in August. The August 3-month average active listings inventory in Texas’ four major new home markets was 31,983 new homes versus 31,358 in July. Dallas-Ft. Worth's active listings in August increased to 7,686 versus 7,348 in July. Active listings in Houston last month also increased to 12,812 versus 12,603 in July. In Austin, active listings in August were higher at 5,973 versus 5,950 in July. In San Antonio, active listings last month were 5,512 versus 5,456 in July. (See Chart 6: Texas Active Listings)
About the HomesUSA.com New Home Sales Index
The HomesUSA.com Index is reported as both a 3-month and 12-month moving average of the Days on Market for new homes listed in the local Multiple Listing Services (MLSs) for Dallas-Ft. Worth, Houston, Austin, and San Antonio. Created by Ben Caballero, it is the first Days on Market index to track the Texas new home market and includes homes listed while under construction. (See Chart A: 12-Month Moving Averages)
*Note: Texas data denotes a combination of its four largest new home markets – Houston, Dallas-Ft. Worth, Austin, and San Antonio – which comprise the vast majority of new home sales and MLS data statewide.
About Ben Caballero and HomesUSA.com®
Ben Caballero, founder and CEO of HomesUSA.com, is a three-time Guinness World Records title holder for ‘Most annual home sale transactions through MLS by an individual sell-side real estate agent – current.’ Ranked by REAL Trends as America’s top real estate agent for home sales since 2013, Ben is the most productive real estate agent in U.S. history. He is the only individual real estate agent to exceed $3 billion in residential sales transactions in a single year (2022), the first agent to exceed $2 billion (2018, 2019, 2020), and the first agent to exceed $1 billion (2015, 2016, 2017). Ben, an award-winning innovator and technology pioneer, works with more than 60 home builders in Dallas-Fort Worth, Houston, Austin, and San Antonio. His podcast series is available widely, including iTunes, Spotify and YouTube. Learn more at HomesUSA.com |Twitter: @bcaballero - @HomesUSA | Facebook: /HomesUSAdotcom.
Note for journalists: You may contact Ben Caballero directly by email at ben@homesusa.com.
REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.
Media Contact:
Kevin Hawkins
(206) 866-1220
kevin@wavgroup.com
Image: Ben Caballero (2023)
https://homesusa.com/wp-content/uploads/2023/04/Ben_Caballero_1-scaled.jpg
Individual Chart images:
Chart 1: Texas New Homes Tracking – Days on Market – August 2024: https://homesusa.com/wp-content/uploads/2024/09/Chart-1-Texas-New-Homes-Tracking-Days-on-Market.jpg
Chart 2: Texas New Home Sales Market – August 2024: https://homesusa.com/wp-content/uploads/2024/09/Chart-2-Texas-New-Home-Sales-Market.jpg
Chart 3: Texas New Home Sales Prices Market – August 2024: https://homesusa.com/wp-content/uploads/2024/09/Chart-3-Texas-New-Home-Sales-Prices-Market.jpg
Chart 4: Texas Sales-to-List-Price Ratio Market – August 2024: https://homesusa.com/wp-content/uploads/2024/09/Chart-4-Texas-Sales-to-List-Price-Ratio-Market.jpg
Chart 5: Texas Pending New Home Sales Market – August 2024: https://homesusa.com/wp-content/uploads/2024/09/Chart-5-Texas-Pending-New-Home-Sales-Market.jpg
Chart 6: Texas Active Listings for New Home Market – August 2024: https://homesusa.com/wp-content/uploads/2024/09/Chart-6-Texas-Active-Listings-for-New-Homes-Market.jpg
Chart A: Texas 12-Month Moving Averages Market – August 2024: https://homesusa.com/wp-content/uploads/2024/09/Chart-A-12MonthChart-DataOnly.jpg
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