We have a 2nd Quarter 2017 Real Estate Rundown on Texas Business Radio that is packed with information for you. I’m Shannon Register, the broker and owner of Register Real Estate Advisors and you can find our Realtors online at RREA.com.
There were 13 cities in Texas that made the “Best Cities to live in America” top 100 list. The woodlands came in at number 6, plano was number 7, and the 4 largest cities in Texas all made the list. Houston hit #57, San Antonio came it at #90, while Austin ranked #22 and Dallas came in at #80.
Our housing economy across the state is strong. With the energy sector performing well, we added 3,900 manufacturing jobs and home prices continue to appreciate across the state. While supply of homes continues to fall short of demand across the state, mainly due to people moving to Texas for job opportunities, there are a few areas in Houston where overbuilding is occurring at certain price points and locations. You may not see this reflected in MLS numbers, but some of that could be due to the builders keeping a lot of their inventory out of the Multiple listing service.
Dallas and Austin are now below the national average in terms of housing affordability.
The average price for a house in the Dallas –Ft Worth area is $236K w/53% of their home sales taking place between the 200-500K price range. They are down to 1.8 months of inventory. That’s almost opposite of Houston where the average home sales price is closer to $250K and 42% of sales were below the $200K price point. Inventory in Houston still low at 3.8 months.
You may find this surprising, In Austin, NO homes sold for less than $100K in March. Austin has seen a huge increase in high end sales. Austin’s Realtor Association reported a decline in single family home sales and a lot of $1mm and up homes for sale. Homes priced at $400K and above seem to be what sells well in the Austin market. The $250K and below homes are hard to find there. This situation has been referred to as Austin’s missing middle market. The average home selling price in Austin was $283K with 56 days on market and 2.1 months of inventory. AGAIN, Houston is just the opposite. H-Town reports our record number of sales are happening below the $500K price point.
In San Antonio it just depends on the neighborhood you choose b/c one side of the street may have higher priced homes and appreciate differently than those neighborhoods across the way. The San Antonio Realtor Association reports the average list price in San Antonio was $357 in March. Their average days on market is 77 days with a 4.5 month supply of inventory which is trailing down for that market. However, if you go inside San Antonio and don’t take suburbs into account, the price point there is $204K and 66% of the home sales were below $200K.
In Aggieland, for those parents preparing to send kids off to college next fall, Bryan College Station is at 3 months of inventory and an average sales price of $206,500.
I hope you’re not tired of hearing about millennials b/c they aren’t going away. As a matter of fact, they are buying houses. Houston is the 3rd largest millennial state so we are seeing a lot of their purchasing power in H-Town. This is contributing to more first time home buyers nationwide with a turndown of high end sales. Did you know there were more home sales in the US this past Feb than in the past 12 months?
Hopefully you filed your taxes already, or atleast an extension. We have tax policy uncertainty in the air. If you invest in rental homes you’ll be happy to know that single family leases are on the rise.
Let’s talk buyers…Recent studies indicate that people are spending less of their take home pay on housing. 66% of buyers are married couples. I’m sure you’ve heard the saying Location Location Location. But now a days people are looking for a neighborhood lifestyle, features in the home, affordability, and location. People don’t seem to be too concerned with interest rates these days. Until the rates go to 7% or higher, buyers wont be effected too much by increasing rates that are inching up.
We talked about different cities, but across Texas the average days on market is about 60 days for houses. The median Texas Home price is $213K. To get the exact numbers on your city, email me firstname.lastname@example.org. I’ll send you a full report that was produced by the Texas Association of Realtors and includes many cities that I didn’t have time to mention in this update.
Lastly, for sellers, Automated tools are great to guess what you could sell your home for, but if you are ready to sell your home, call an experienced Realtor to find out the best selling price b/c different variables go into home pricing – like condition, upgrades, and time of year, that automated online tools can’t take into consideration.
Sponsored in part by:
A native of Columbus, Georgia, and a graduate of the University of Georgia, Shannon is the Broker / Owner of Register Real Estate Advisors. She holds over nine real estate Certifications and Designations. Shannon is the host of "Houston Real Estate Radio" on NewsRadio 740 KTRH in Houston. You can learn more about Shannon HERE.