TAR report: 2016 another good year for Texas home sales, prices

​​​​AUSTIN – Texas home sales volume and home prices reached all-time highs for the second year in a row in 2016, according to the 2016 Texas Real Estate Year in Review Report released today by the Texas Association of Realtors.

Prices rose steadily throughout last year, with the median price increasing 7.7 percent from the previous year to $210,000.

During that time, sales volume increased 4.6 percent to 324,924 homes sold.

Real Estate Center Chief Economist Dr. Jim Gaines said the 2017 market is projected to keep pace with last year’s strong levels, but it may be difficult because of current housing supply levels.

"Household incomes are rising at a disproportionally lower rate than home prices, creating housing affordability challenges across the state," Gaines said. "In housing development, labor shortages and regulatory barriers are slowing construction and in turn, driving up new home prices.”

The state’s low housing inventory level remained consistent with 2015, ending at 3.3 months of inventory in December 2016.

Homes stayed on the market an average of 58 days, and active listings increased 6 percent from 2015 to 2016.​