Changing Market Conditions Increase in housing inventory in Texas. Here’s how it’s a plus
Here’s something that might ease tensions among Dallas-Fort Worth realtors: Inventory is rising.
Of course, market conditions — higher interest rates and inflation — are at play, but it was a silver lining in the Texas Realtors Second Quarter Housing Report.
Comparing quarters, months of inventory was 1.8 months versus 1.1 in 2021. That’s one-seventh tenth of a home, but at least it’s a gain over what has been a harsh reality for the officers. Active listings (16,455) are up 48.7% from a year ago.
Statewide, inventory was even better, coming in at 2.1 versus 1.3 in the second quarter of 2021. This is the first time inventory has increased year over year. another since the third quarter of 2019 and the first time it has exceeded two months since the third quarter of 2020.
“Housing inventory levels are finally on the rise in many parts of the state – something we haven’t seen in several years – but home prices continue to rise,” said Russell Berry, president of Texas Realtors, in a statement.
We may see further inventory and price changes in the months ahead. The Federal Reserve raised its key rate by 0.75% on Wednesday, which mainly impacts homeowners who refinance or take out a new loan.
The increase was the fourth of what could be seven bumps in 2022, Clare Losey, assistant research economist at Texas A&M University’s Texas Real Estate Research Center, told Bankrate.com.
“Such increases decrease the affordability of buying, making it even more difficult for low-income buyers and first-time buyers to buy a home.”
According to the report, the statewide median price of $357,388 represents a 19.1% increase from the same quarter last year. Nearly half of the 108,390 homes sold in Texas were between $200,000 and $399,000. Closed sales decreased by 5.6%.
In the D-FW market, the median price increased by 21.4% compared to the same quarter last year. Days on market were 54, down three from Q2 2021, and closed sales were down 6.6%.
“If inventories continue to rise steadily and home sales price appreciation begins to slow, we could be heading into a pre-pandemic environment,” said Jim Gaines, research economist at the Texas Real Estate Research Center of Texas A&M University.
As Seth Fowler of Williams Trew Real Estate in Fort Worth put it recently, “It is and will continue to be a very strong seller’s market. But the signs are there for some normality and balance in the real estate market.
What is the Texas Association of Realtors: This organization is an advocate for real estate agents and private property rights.
Report review: The Texas Housing Quarterly Report is a reliable rabbit terrier. In large, chunky style charts, Texas Realtors lines up well-organized snapshots of 25 markets across Texas. Data used in the report comes from the Texas Realtors Data Relevance Project, a partnership between the Texas Association of Realtors and local associations of realtors across the state. analysis is provided under a research agreement with the Real Estate Center at Texas A&M University. 🐇 🐇 🐇 🐇