Oil Prices Down, But Home Sales, Prices Up

AUSTIN (Texas Association of Realtors) – Texas home prices hit an all-time high in second quarter 2015, while sales remained strong, according to the Texas Quarterly Housing Report released yesterday by the Texas Association of Realtors (TAR).

"The impact of lower oil prices continues to be delayed, leading to a surprisingly strong second quarter. In fact, Texas home sales are actually stronger than they were this time last year, when oil prices were nearly $100 a barrel," said TAR Chairman Scott Kesner. "This is further evidence of the strong and enduring demand for Texas real estate."

According to the report, Texas home sales increased 46.3 percent from the first quarter and 4.7 percent year-over-year to 88,906 sales.

Median price increased 8.1 percent from a year ago to $200,000. Average price increased 9 percent year-over-year to $258,786. This is the first time the median price for Texas homes has risen to $200,000, marking an all-time high for Texas home prices.

Monthly housing inventory continued to decline, falling 9.2 percent year-over-year to 3.8 months. The Real Estate Center at Texas A&M University estimates that a monthly housing inventory of 6.5 months is a level at which supply and demand for homes are balanced.

“Despite expected negative impacts from the decline in the oil price and rig counts, both existing housing development and new single-family home sales continue to be strong," said Center Research Economist Dr. Jim Gaines. "While a down oil and gas market makes it difficult to forecast Texas real estate for the rest of the year, preliminary numbers indicate a positive third quarter of 2015. Additionally, the expectation of rising interest rates in the near future could be stimulating demand as well."