Texas New Home Sales, Income Growth Outperform U.S.Texas New Home Sales, Income Growth Outperform U.S.https://www.recenter.tamu.edu/news/newstalk-texas/?Item=103052015-03-03T16:30:00Z2015-03-03T00:00:00Z

AUSTIN (Texas Association of Realtors) – Texas continues to be a national leader in median household income growth and new home sales, according to the 2015 Texas Homebuyers and Sellers Report released yesterday by the Texas Association of Realtors.

From July 2013 to June 2014, the median household income of Texas homebuyers increased 5.9 percent to $97,500. This is more than four times the increase in median household income among homebuyers nationally, which rose 1.4 percent to $84,500 during the same time frame.

Additionally, 28 percent of Texas homes purchased between July 2013 and June 2014 were new homes, a 1 percent decrease from the previous one-year period yet nearly double the share of new homes among U.S. home sales during the same period. Nationally, the share of new home sales remained constant at 16 percent of all U.S. home purchases.

Increased restrictions in lending standards and rising home prices in certain local markets continue to stifle the growth of first-time homebuyers in Texas. The percentage of first-time homebuyers in Texas decreased 4 percent to 29 percent of all homebuyers between July 2013 and June 2014. Nationally, the percentage of first-time homebuyers decreased 5 percent to 33 percent during the same time frame.

As a result, Texas homebuyers are older and more likely to be married couples. From July 2013 to June 2014, the typical Texas homebuyer was 45 years old, an increase of two years from the previous report. The percentage of married homebuyers increased 1 percent year-over-year to 72 percent, compared to a 1 percent decrease to 65 percent nationally.

Other key statistics from the report include:

  • Median household income among first-time homebuyers increased 5.8 percent year-over-year to $72,000 for first-time homebuyers in Texas and 2.3 percent to $68,300 for first-time homebuyers nationally.
  • Meanwhile, median household income among repeat buyers decreased, dropping 8.9 percent to $97,500 in Texas and dipping 1 percent nationally to $95,000 year-over-year.
  • Texans are buying newer, larger homes than homebuyers nationwide. The typical three-bedroom, two-bathroom home in Texas was 2,100 sf and built in 2002. Nationally, the typical three-bedroom, two-bathroom home was 1,870 sf and built in 1993.
  • Sixteen percent of homebuyers in Texas purchased a multigenerational home due to children over the age of 18 or aging parents moving into the house. Nationally this was 13 percent.
  • The tenure of owning a home increased one year for both Texas and the nation from July 2013 to June 2014, to nine years in Texas and ten years nationally.
  • For Sale by Owner (FSBO) homes in Texas sold for 30 percent less than homes sold using a Texas Realtor. The average Texas FSBO home sold for $160,000, compared with $228,000 for the average Realtor-assisted home sale.
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