December 01, 2015 — Austin
Texas real estate made a strong showing in all segments of the housing market in 2015 due to continued growth in the state’s economy, jobs, and population, according to the 2015 Texas Annual Housing Report released today by the Texas REALTORS®.
“The Texas real estate market has been firing on all cylinders in 2015. People are relocating to Texas from far and wide, homes in all price classes are in high demand, and the number of available properties is slowly rising,” said Scott Kesner, chairman of the Texas REALTORS®.
The 2015 editions of the Texas Quarterly Housing Report indicated that Texas real estate is on pace to potentially have a record year in 2015. Home sales and prices steadily increased throughout the year, while statewide housing inventory reached a two-year high—4.0 months—in 2015-Q3. Once again, the 2015 Texas Homebuyers and Sellers Report showed that Texas is outpacing the nation in home sales, as median incomes for Texans rose 5.9% year-over-year—more than double the growth rate of incomes nationally during the same time frame.
Texas’s business-friendly environment and strong job growth continued to attract new residents from out-of-state and internationally in 2015. Texas was the No. 2 state for gains in out-of-state residents, with more than 538,000 Americans relocating to Texas, according to the 2015 Texas Relocation Report. Additionally, international homebuyers contributed more than $8.32 billion to the Texas economy in a 12-month period, according to the 2015 Texas International Homebuyers Report.
“Texas’s diversified economy and our state’s enduring real estate demand shows that Texas remains to be a great place to live, work, and do business,” said Kesner.
Two of the strongest segments of the Texas housing market were luxury home sales and small land sales. According to the 2015 Texas Luxury Home Sales Report, home sales priced at $1 million or higher grew between nine and 26% year-over-year in the state’s four largest metros. Small land sales throughout Texas also experienced double-digit growth, with 5,282 small land sales statewide. This was a 20.69% increase from the year prior, according to the 2015 Texas Small Land Sales Report.
Condominium and townhome sales in Texas continued to be strong, remaining fairly consistent with the previous year’s sales volume. The 2015 Texas Condominium Mid-Year Sales Report showed that existing condos spent less time on the market than new condos, as rising land and development costs may make new condominiums less affordable for some buyers.
Despite this rapid market growth, tough lending standards and a competitive homebuying market continued to make home remodeling a popular option among Texas homeowners. The 2015 Texas Remodel Valuation Report showed that remodeling projects continued to gain popularity and profitability, with smaller, functional projects that boosted a home’s curb appeal recouping the highest percentage of project costs.
Kesner concluded, “Once again, the Texas housing market has exceeded expectations and is on pace to possibly set another record for home sales. The market will remain highly competitive in 2016, making housing development and affordability key areas of focus throughout the state.”