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RECON for April 23, 2021RECON for April 23, 20212021-04-23T05:00:00Z2021-04-23T05:00:00Z
Rusty Adams (back), research attorney at the Texas Real Estate Research Center, was one of the many presenters at the 30th Annual Outlook for Texas Land Markets conference this week. The Center's graphics team (left to right: Graphic Designer Alden DeMoss, Graphics Specialist JP Beato, and Creative Manager Bob Beals) was hard at work behind the scenes. This was the first time the Center has held the event virtually. (Photo by Center Program Coordinator Cheryl Pruitt.)
April 23, 2021

Texas existing home sales rebound in March, but supply-side constraints persist

​COLLEGE STATION (Texas Real Estate Research Center) – The Texas housing market rebounded in March after Winter Storm Uri shocked activity during the previous month. Existing homes sold through Texas Multiple Listing Services increased 9.8 percent on a month-over-month (MOM) basis.

"Texas housing sales continued to trend upward amid historically low mortgage-interest rates and waning effects of the pandemic," according to Dr. Luis Torres, research economist for the Texas Real Estate Research Center at Texas A&M University.

According to the National Association of Realtors (NAR), existing home sales fell 3.7 percent MOM but increased 12.3 percent over March 2020. Annual metrics, however, should be interpreted with caution.

"We have reached the one-year mark of when COVID-19 prompted a nationwide economic halt, which is distorting standard year-over-year measures," said Torres. "It may be more useful to look at higher-frequency data or to make comparisons with 2019 for the next few months."

Existing home sales in Texas were 16 percent higher than in March 2019.

Supply-side activity also rebounded from the February weather shock, with a 16 percent MOM increase in the number of new listings on the market. New listings, however, have failed to keep pace with sales, leading to diminished inventories across the state.

"Texas’ months of inventory sank below 1.3 months for the first time in series history, highlighting the shortage of homes on the market," said Torres. "The lack of supply, particularly for homes priced under $300,000, is one of the greatest challenges to the housing market and, more broadly, the Texas economy."

NAR announced similar constraints at the national level pushed the median existing home sale price up 17.2 percent YOY.

Existing homes in Texas had a similar YOY price increase, reaching a record $279,740.

Torres notes how these explosive growth numbers may be deceptive.

"While the median price is more robust to outliers than the average price, compositional changes in home sales can still cloud real growth in prices," he said. "Our Texas Repeat Sales Index avoids this composition bias, showing annual growth in real housing prices closer to 12 percent. This rate of home-price appreciation, however, is still taxing housing affordability across the state."
https://www.recenter.tamu.edu/articles/technical-report/outlook-for-the-texas-economy
Read our latest Outlook for the Texas Economy report for more.

Mixed-use project with 776 apartments underway in Lewisville

​LEWISVILLE (Dallas Business Journal) – The city council approved zoning changes to 35.8 acres at the northeast corner of McGee​ Ln. and Justin Rd., where Centurion American wants to build a mixed-use project.

The development, called Fronterra, will include 494 apartments across two buildings, which will have 5,000-sf live/work units. 

It will also have a 265-unit mixed-use apartment complex with 35,000 sf of ground-floor commercial space, 201 townhomes, 4.8 acres of public green space, and a public plaza. 

The project is being designed by Bush Architects and Architecture Demarest.
Land conference watch party
While we missed seeing your smiling faces at this year's Outlook for Texas Land Markets conference, we still consider our virtual event a success. Tory Virdell, Realtor at Virdell Real Estate in Llano, sent in a photo of his conference watch party at The Dominion in San Antonio.

281-unit luxury apartment complex coming near Pearl

​​SAN ANTONIO (San Antonio Business Journal) – A local development team is planning Residences at Grayson Heights, a 281-unit luxury apartment complex, on four acres at the intersection of East Carson St. and Spofford Ave. 

The property will have studio and one- and two-bedroom units. 

Amenities will include a pool, clubhouse, fitness center, dog park, community park, and 2,000 sf of retail space. 

The project will be part of Grayson Heights, a mixed-use development near the Broadway corridor.

Construction begins at the end of the year and will be complete by 2023.
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Lincoln Property Co. to develop mixed-use towers in Preston Center

​​DALLAS (Connect CRE) – Lincoln Property Co. is planning a mixed-use development at 8111 Douglas Ave.

The project will consist of 225,000 sf of office space and 128 multifamily residential units in two side-by-side towers, separated by a parking garage and amenity deck. 

Lincoln Property is developing the site on land owned by Saint Michael and All Angels Episcopal Church following a five-year collaborative effort to secure entitlements from the city. 

Lincoln Property Company will lease 59,000 sf, and Sewell Automotive Companies will lease 26,500 sf. 

Construction begins in May.
market viewer screen shotTexas Realtors' MarketViewer tool helps members and their clients quickly understand the market statistics in their area. This powerful tool is a member benefit available exclusively to Texas Realtors and local Realtor associations in Texas. Data are compiled and analyzed through a research agreement between Texas Realtors, the Texas Real Estate Research Center, and all MLSs across the state. 

Equity Growth Partners buys Houston industrial asset

​​​​HOUSTON (REBusiness Online) – Equity Growth Partners LP has purchased a 135,296-sf industrial building on 8.5 acres at 5800 Clinton Dr.

The single-tenant property was built in 1947 and renovated in 2007. 

Moody Rambin represented the seller, CDAB II LP. Boyd Commercial represented the buyer.
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120,000-sf mid-rise slated for downtown Austin

​​​​AUSTIN (Austin Business Journal) – Weaver Buildings LLC is developing Shoal Cycle, a 120,000-sf mid-rise housing development on 11th St. 

The property will have 210 beds, 58 parking spots, and 3,500 sf of ground-floor retail. 

Construction will be complete by spring 2023. 

Brothers Construction Company Ltd. is the general contractor. Studio Architects is the architect of record. 
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Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Texas Real Estate Research Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Texas Real Estate Research Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.

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