The Texas housing market is undergoing significant changes. While the lack of housing inventory continues to drive up prices, experts predict a slowdown in appreciation compared to the past two years.
With around 1,700 cities in Texas, the real estate market remains diverse. According to research by PwC and the Urban Land Institute, Texas boasts four of the top twelve markets with the highest house-building prospects. But what else is going on in the Texas housing market?
Texas Housing Market Trends: Summer 2023
Despite fluctuations, Texas' housing market demonstrated resilience this summer. Factors like a shift towards new construction, rising permit demand, and steady price gains indicate a healthy real estate environment, though challenges such as high mortgage rates persist.
Active Listings & New Construction
The number of active listings grew by 3.9% in June 2023, reaching 82,064 units. Smaller housing markets like El Paso, Killeen, Midland, and Texarkana helped drive this increase.
While single-family construction permits decreased by 2% in June, construction starts rose for the third consecutive month to 11,240 units, with Dallas and Houston leading the way.
Despite high mortgage rates, the market share of new construction sales surged from 16.3% to over 20% within a year. Texas' median home prices showed strength, increasing by 0.3% to $337,900, with Austin recording the largest monthly gain at 4.2%.
Texas Housing Market Predictions 2023-2024
Texas has experienced strong housing appreciation rates over the past decade, making it an attractive long-term investment. As of July 2023, the average home value is $301,763, with a 1.0% decrease in the past year and homes pending in approximately 16 days.
Top 10 Places to Buy a House in Texas
Based on various factors, including property values and taxes, the top areas to buy a home in Texas include Cottonwood Creek South, Arapaho, Lakeside City, Fulshear, Canyon Creek South, Heights Park, Shady Hollow, Red Lick, Woodway, and Timberbrook.
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