Texas existing-home sales slow in June, inventory improves slightly
COLLEGE STATION – Texas’ existing-home sales were almost flat in June increasing just 1.6 percent over May to 27,000 transactions. Experts say the sales trend is slowing amid constrained inventories.
"Mortgage rates are still hovering around 3 percent, and ongoing demographic trends continue to support housing demand," said Dr. Luis Torres, research economist for the Texas Real Estate Research Center at Texas A&M University.
The average Texas home stayed on the market for just 26 days, the shortest time since the Center began keeping records in 1997.
According to the National Association of Realtors (NAR), national existing-home sales rose moderately in June, rebounding slightly from a four-month slide. Along with the 1.4 percent monthly increase, national sales were up 22.9 percent from last year.
"Standard year-over-year (YOY) calculations should be viewed cautiously due to the effects of the pandemic in June of last year," said Torres.
Along with a June increase in sales, a 9.2 percent increase in new listings pulled Texas’ months of inventory of existing homes to 1.3 months.
"It appears the persistent low level of inventory is easing as more homes hit the market," said Torres. "However, the limited inventory for homes priced less than $300,000 is particularly distressing and is putting pressure on home affordability."
While reaching an all-time high, Texas’ median existing home sales price fell 19.3 percent YOY to $298,000. NAR reported an annual national increase of 23.4 percent to $363,300.
Torres said a shift in the composition of sales toward higher-priced homes due to limited inventory at the bottom price cohorts explains some of the increase in the median sales price.
"Our Texas Repeat Sales Home Price Index accounts for this compositional bias and indicates annual home-price appreciation was closer to 15 percent in June. Although less extreme than the median price metric suggests, the rise in home prices is still impairing Texas housing affordability."
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