HomesUSA.com reports low inventory continues to challenge the market
The Texas new home market recorded its fastest sales pace and highest average for new home prices last month as record low inventory continues to alter the local real estate markets in Dallas-Ft. Worth, Houston, Austin and San Antonio, HomesUSA.com reported today.
This HomesUSA.com report is based on data from the North Texas Real Estate Information Systems, Houston Association of REALTORS, Austin Board of REALTORS Multiple Listing Services and San Antonio Board of REALTORS.
The 3-month moving average for Days on Market (DOM) dropped to 72 days statewide, setting a record low for the fewest average number of days to sell a new home since HomesUSA.com began tracking the data with the launch of its News Home Sales Index in 2017.
In Austin, the DOM dropped to 47 days, selling 50 percent faster than May 2020 when the DOM was 95 days. Dallas-Ft. Worth and San Antonio also recorded home sales that were 37 percent and 34 percent faster versus their reported DOM in May 2020. Houston has the smallest DOM change, dropping over 20 percent year-over-year.
The inventory squeeze helped drive Texas new home prices to a record high. The 3-month moving average for a new home in Texas was $386,320, up more than 10% from the May 2020 average of $348,165 and more than $4,000 higher than last month’s average for Texas of $382,084. Despite inventory challenges, total new home sales last month were up from April in Dallas-Ft. Worth, Houston, and San Antonio. In Austin, new home sales were flat last month.
“Record low inventory is having a massive impact on new home sales,” said Ben Caballero, owner of HomesUSA.com and current Guinness World Record titleholder. Caballero recently gained national attention writing about how long the nation’s housing shortage will last.
“In Texas, new homes are selling faster than ever, average prices are setting new records, and new homes are at or above their asking prices. This is a builder’s market and builders are working harder and faster than ever to bring new inventory onto the market to help meet demand,” he added.
Texas new home sales in its four major markets totaled 4,413 sales last month, up from 4,133 sales in April, the 3-month moving average shows. New home sales in Dallas-Ft. Worth totaled 1,396 in May versus 1,338 in April, while Houston posted 1,820 sales in May versus 1,626 in April. San Antonio total new home sales were 695 in May versus 666 in April. Austin new home sales were flat, totaling 502 sales in May versus 504 in April.
The 3-month moving average also showed 12,389 new homes listed statewide versus 13,996 in April. In May 2020, there were 23,707 active listings, a 47 percent drop of new homes listed year-over-year in the four major new home markets in Texas.
Texas pending sales declined last month. The 3-month moving average of pending sales in May was 5,140 versus 5,308 in April.
Caballero noted the 3-month moving average of new home prices rose in May in all four major Texas new home markets. Austin saw the biggest monthly and year-over-year jump in its average new home price. In May, the average new home price in Austin was $450,263 versus $439,353, a single month increase of nearly $11,000.
Dallas-Ft. Worth’s average new home price in May was $414,290 versus $363,106 in May 2020. The average new home price in May for Houston was $378,281 versus $372,345 in April, and San Antonio’s average new home price was $309,852 in May versus $305,492 in April.
Caballero is sharing the HomesUSA.com New Homes Report in advance of the release by the Commerce Department of its nationwide New Residential Sales report for June set for Wednesday, June 23, at 10:00 am Eastern.
Caballero noted the monthly HomesUSA.com report includes both 3-month and 12-month moving averages for all essential market data, including Days on Market, sales volume, sales prices, a sales-to-list price ratio, pending sales, and active listings. The 3-month indices track market seasonality while the 12-month moving average removes the seasonality and tracks the longer trend.
Days on Market – New Homes in Texas (Exclusive Data)
The HomesUSA.com New Home Sales Index showed the 3-month moving average of Days on Market dropped in all four of Texas’s major new home markets. The DOM for Dallas-Ft. Worth was 61.03 days in May versus 66.89 days in April. Houston’s DOM was 90.11 days in May versus 92.64 days in April. Austin’s DOM was 47.12 days in May versus 55.36 days in April. In San Antonio, the DOM was 65.20 days in May versus 70.58 days in April. (See Chart 1: Texas New Homes Days on Market)
Texas New Home Sales Data
Total new home sales for last month bounced higher statewide in Texas, driven by stronger sales in three of its major new home markets, according to the 3-month moving averages. Houston posted the strongest sales increase with May sales totaling 1,820 versus 1,626 in April. In Dallas-Ft. Worth, May sales also jumped, totaling 1,396 versus 1,338 in April. San Antonio also posted higher sales with May totaling to 695 versus 666 in April. Austin’s May new home sales were lower, totaling 502 versus 504 in April. (See Chart 2: Texas New Home Sales)
Texas New Home Prices
The average price of new homes was higher statewide in all four major new home markets in Texas. Austin’s 3-month moving average price – the highest among the top four markets – was $450,263 in May versus $439,353 in April. Dallas-Ft. Worth reported its 3-month moving average price for new homes was $414,290 in May versus $412,057 in April. In Houston, the average new home price was $378,281 in May versus $372,345 in April. In San Antonio – the top market with the smallest increase – the average new home price was $309,852 in May versus $305,492 in April. (See Chart 3: Texas New Home Prices)
Texas Sales-to-List Price Ratio
New home sales continue to push higher and sell closer to the asking price. May’s 3-month moving average of the sales-to-list price ratio statewide was 99.121 percent versus 98.959 percent in April. In Dallas-Ft. Worth, it was 99.480 percent in May versus 99.180 percent in April. In Houston, it was 98.735 percent in May versus 98.610 percent in April. The Austin ratio was 100.167 percent in May versus 99.994 percent in April, and San Antonio’s ratio was 98.688 percent last month versus 98.590 percent in April. (See Chart 4: Texas Sales-to-List Price Ratio)
Texas Pending New Homes Sales Data
New home sales activity in Houston, Dallas-Ft. Worth, Austin and San Antonio – combined with record-low inventory – pushed the 3-month moving average for pending new home sales lower in May. Statewide pending sales dropped in May to 5,140 versus 5,308 in April. Houston’s May pending sales were 2,288 versus 2,278 in April. Dallas-Ft. Worth pending sales were down last month to 1,669 vs 1,791 in April. Austin reported pending sales in May of 365 versus 311 in April. In San Antonio, pending sales last month were 819 versus 928 in April. (See Chart 5: Texas Pending New Home Sales)
Texas Active Listings for New Homes
As demand continues to rapidly outpace supply despite higher building starts, builders’ inventory continues to tighten. The 3-month moving average shows active listings plummeted statewide in May to 12,389 versus 13,996 in April.
The 3-month moving average for active listings in Dallas-Ft. Worth dropped in May from 3,357 versus 4,088 in April. In Houston, last month’s active listings were 6,582 versus 7,084 in April. In Austin, May was 791 versus 926 in April. San Antonio reported active new home listings last month were 1,660 versus 1,898 in April. (See Chart 6: Texas Active Listings and Chart A: 3-Month Moving Averages)
About the HomesUSA.com New Home Sales Index
The HomesUSA.com Index is reported as both a 3-month and 12-month moving average of the Days on Market (DOM) for new homes listed in the local Multiple Listing Services (MLSs) for the four largest Texas markets, including Dallas-Ft. Worth, Houston, Austin, and San Antonio. Created by Ben Caballero, founder and CEO of HomesUSA.com, it is the first Days on Market index to track Texas’s new home market.
About Ben Caballero and HomesUSA.com®
Ben Caballero, founder and CEO of HomesUSA.com, holds the current Guinness World Record title for “Most annual home sale transactions through MLS by an individual sell side real estate agent.” Ranked by REAL Trends as America’s top real estate agent for home sales since 2013, Ben is the most productive real estate agent in U.S. history. He is the only agent to exceed $1 billion in residential sales transactions in a single year, a feat first achieved in 2015 and repeated each year through 2018, when he achieved more than $2 billion. An award-winning innovator and technology pioneer, Ben works with more than 60 home builders in Dallas-Fort Worth, Houston, Austin, and San Antonio. His podcast series is available on iTunes and Google Podcasts. An infographic illustrating Ben’s sales production is here. Learn more at HomesUSA.com |Twitter: @bcaballero – @HomesUSA | Facebook: /HomesUSAdotcom.
Note for journalists: You may contact Ben Caballero directly on his cell at (214) 616-9222 or by email at firstname.lastname@example.org.
“REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.”
Individual Chart images:
Chart 1: Texas New Homes Tracking – Days on Market – May 2021: https://homesusa.com/wp-content/uploads/2021/06/Chart-1-Texas-Days-on-Market.jpg
Chart 2: Texas New Home Sales – May 2021: https://homesusa.com/wp-content/uploads/2021/06/Chart-2-Texas-New-Home-Sales.jpg
Chart 3: Texas New Home Sales Prices – May 2021: https://homesusa.com/wp-content/uploads/2021/06/Chart-3-Texas-New-Home-Sales-Prices.jpg
Chart 4: Texas Sales-to-List-Price Ratio – May 2021: https://homesusa.com/wp-content/uploads/2021/06/Chart-4-Texas-Sales-to-List-Price-Ratio.jpg
Chart 5: Texas Pending New Home Sales – May 2021: https://homesusa.com/wp-content/uploads/2021/06/Chart-5-Texas-Pending-New-Home-Sales.jpg
Chart 6: Texas Active Listings for New Homes – May 2021: https://homesusa.com/wp-content/uploads/2021/06/Chart-6-Texas-Active-Listings.jpg
Chart A: Texas 3-Month Rolling Averages – New Homes – May 2021: https://homesusa.com/wp-content/uploads/2021/06/Chart-A-3MonthChart-DataOnly.jpg
| Source: HomesUSA.com