The latest Multiple Listing Service housing market data show Texas home sales had a 7 percent year-over-year increase last month while the median price was up 8 percent. Although the rise in both sales and prices might suggest housing affordability is not yet a problem in Texas, Jim Gaines, research economist at the Real Estate Center at Texas A&M University, warns the price category for potential buyers is becoming an issue, particularly for those with low or medium household income.
“If you’re a low-to-medium-income household, you’re probably having difficulty finding a home in the price range you’re looking for,” Gaines says. “You’re also probably not finding many new houses because few are being built at that price level. Most builders are building on the high-end scale.”
Also, affordability is a relative term, Gaines adds.
“Compared with communities around the country, most Texas communities remain a housing bargain in terms of general price levels and availability,” he explains. “But compared with where home prices in Texas have been the last 20 or 25 years, yes, things are getting pricey.”
According to June 2015 Texas MLS data (as of July 27), 31,524 homes were sold last month, about 2,100 more than a year ago, but more than 4,200 more than in May of this year.
The median price was $209,500 compared with $193,500 a year ago and $205,300 in May.
The statewide months’ inventory stood at 3.6 months, well below the 6.5 months that Center economists consider a balanced market.
Here’s how the state’s major metros fared in June:
|Year-Over-Year Change||June 2015
|Year-Over-Year Change||Months’ Inventory|
|Austin||3,382||Up 6%||$270,100||Up 9%||2.8|
|Dallas||6,873||Up 9%||$243,100||Up 12%||2.2|
|Fort Worth||1,367||Up 19%||$159,100||Up 4%||2.2|
|Houston||8,740||Up 4%||$222,000||Up 5%||3.2|
|San Antonio||3,010||Up 18%||$199,200||Up 6%||4|
|Texas||31,502||Up 7%||$209,500||Up 8%||3.5|
June 2015 home sales data for most Texas MLSs are online at http://www.recenter.tamu.edu/data/hs/.
Gaines talks about the Texas housing market on the July 22 episode of the Real Estate Red Zone. Listen to the free podcast at http://www.recenter.tamu.edu/podcast/.