Hunter Dodson
Pierpont Communications

Texas home prices hit all-time high, home sales rise in second quarter of 2015

Texas REALTORS® releases 2015-Q2 edition of the Texas Quarterly Housing Report

August 03, 2015 — Austin

Texas home prices hit an all-time high in the second quarter of 2015, while home sales remained strong amid high demand, according to the 2015-Q2 Texas Quarterly Housing Report released today by the Texas REALTORS®.

“The impact of lower oil prices continues to be delayed, leading to a surprisingly strong second quarter. In fact, Texas home sales are actually stronger than they were this time last year, when oil prices were nearly $100 a barrel,” said Scott Kesner, chairman of the Texas REALTORS®. “This is further evidence of the strong and enduring demand for Texas real estate.”

According to the report, Texas home sales increased 46.3% from 2015-Q1 and 4.7% year-over-year to 88,906 home sales.

During the same time frame, the median price for Texas homes increased 8.1% from 2014-Q2 to $200,000 and average price increased 9% year-over-year to $258,786. This is the first time the median price for Texas homes has risen to $200,000 and an all-time high for Texas home prices.

Monthly housing inventory continued to decline, falling 9.2% year-over-year to 3.8 months. Inventory is still firmly within a seller’s market, as the Real Estate Center at Texas A&M University estimates that a monthly housing inventory of 6.5 months is a level at which supply and demand for homes is balanced.

Jim Gaines, Ph.D., economist with the Real Estate Center at Texas A&M University, explained, “Despite expected negative impacts from the decline in the oil price and rig counts, both existing housing development and new single-family home sales continue to be strong. While a down oil and gas market makes it difficult to forecast Texas real estate for the rest of the year, preliminary numbers indicate a positive for the third quarter of 2015. Additionally, the expectation of rising interest rates in the near future could be stimulating demand as well.”

Chairman Kesner concluded, “As home prices continue to rise, housing affordability could become a greater issue across the state. The Texas REALTORS® is committed to keeping homeownership affordable and fully supports the property tax exemption increase and the permanent ban on a real estate transfer tax proposed in Proposition 1.”

About the Texas Quarterly Housing Report

Data for the Texas Quarterly Housing Report is provided by the Data Relevance Project, a partnership among local REALTOR® associations and their MLSs, and Texas REALTORS®, with analysis by the Texas Real Estate Research Center at Texas A&M University. The report provides quarterly real estate sales data for Texas and 25 metropolitan statistical areas in the state. The Texas Real Estate Year-in-Review Report in February and the Texas Real Estate Mid-Year Report in August are released in lieu of the Q2 and Q4 reports each year.