TAR: Home sales jump, inventory drops to all-time low

AUSTIN – Texas home sales rose significantly in first quarter 2016 while housing inventory fell to an all-time low, according to the 2016-Q1 Texas Quarterly Housing Report released yesterday by the Texas Association of Realtors.

The report showed 65,265 homes were sold in the first quarter, a 7.8 percent increase from the same quarter of 2015. The median price for Texas homes increased 5.4 percent year-over-year to $195,000. 

Housing inventory fell to an all-time low of 2.8 months, a decline of 0.6 months from a year ago. The Real Estate Center estimates that a monthly housing inventory between six and 6.5 months is a balanced market.

Active listings also fell sharply in the first quarter, dropping 11.9 percent year-over-year to 74,276 active listings. Texas homes continued to spend less time on the market—an average of 64 days, down three days from the same period last year. 

"The Texas economy is experiencing a cooling-off period after a five-year boom, so the Texas housing market’s strong gains despite the current uneasiness in the state economy are remarkable," said Center Chief Economist Dr. Jim Gaines.

"It will be interesting to see how Texas real estate activity performs in the next two quarters, typically the strongest quarters for home sales every year," he said. "That performance will show the full strength of the Texas housing market in 2016."