Texas New Homes Are Taking Longer To Sell, And Prices Are Down, But Overall Sales Are Still Showing Remarkable Stamina”

WRE News

New homes in Texas are taking longer to sell and average home prices are lower, according to a new HomesUSA.com New Home Sales Report released today by Ben Caballero, real estate agent and HomesUSA.com CEO.

The HomesUSA.com New Home Sales Report uses Multiple Listing Services data – the most complete, current, and accurate information available – from the Realtor Associations of Austin, North Texas, Houston, and San Antonio.

Caballero notes the HomesUSA.com New Home Sales Index shows the pace of new home sales slowed significantly for the fifth straight month. The statewide 3-month moving average for Days on Market in January jumped, increasing to 83.29 days versus 73.57 days in December. Last year, Days on Market in January 2022 averaged 57.08 days statewide, up over 45% year-over-year.

Texas new home sales were down last month with 4,344 homes sold versus December’s annual record of 4,467.

“Texas new home sales are still showing remarkable stamina – as are Texas builders,” said Caballero. “Statewide and locally – in Houston, Dallas-Ft. Worth, Austin and San Antonio – average new home sales are still strong, despite all of the challenges builders face. In Dallas-Ft. Worth, sales were higher in January than December, which was a record high for 2022. Caballero added, “But keep in mind as inventory rises builders are listing more homes which increases sales reported to MLS.”

New home prices in Texas were lower statewide and in all four of its major new home markets. The 3-month moving average of new home sales prices statewide last month was $460,083 versus $463,514 in December. The average new home price was lower in Houston, Dallas-Ft. Worth, Austin and San Antonio.

The 3-month moving average price for new homes in Austin, which continues to have the highest-priced new homes in the state, decreased in January to $523,931 versus $533,703 in December. Houston’s average new home price decreased in January to $414,728 from $423,512 in December. In Dallas-Ft. Worth, the average new home price declined slightly in January to $501,763 versus $501,789 in December. San Antonio’s average new home price in January was $393,316 versus $396,487 in December.

Another indication that average new home prices are improving for buyers is the sales-to-list-price ratio. It has declined from a recent high of 99.95% in June 2022 to 97.23% in January 2023, dropping for the seventh straight month.

Local MLSs data also shows potentially slowing sales statewide, as active listings of new homes were relatively flat last month. The 3-month average of active listings in Texas’ four largest markets for January was 28,465 versus 28,088 in December.

Dallas, Houston, and San Antonio all reported active listings that were relatively flat. Only Austin showed a significant increase in active listings.

Finally, statewide pending new home sales reported to the MLSs jumped last month to its highest level since last spring. In January, the 3-month moving average of pending new home sales statewide was 5,245 versus 4,605 in December.

The HomesUSA.com monthly report is based on closed sales recorded inside the MLSs by the 10th day of the following month. Sales reported late by agents are not included. The report features 3-month and 12-month moving averages for six essential market data, including Days on Market, sales volume, sales prices, a sales-to-list price ratio, pending sales, and active listings. Caballero explained the 3-month moving average indices track market seasonality, while the 12-month moving average removes the seasonality and tracks the longer trend.