For the sixth consecutive year, the Texas housing market broke records in terms of the number of homes sold and median price, while inventory levels hit a critical all-time low, according to the 2020 Texas Real Estate Year in Review report. Home sales across the state increased 9.5% in 2020, with 393,615 homes sold. This is a larger increase than the 3.8% increase in 2019.
Housing inventory dropped to 1.7 months of inventory, a decrease of 1.3 months from 2019. According to the Texas Real Estate Research Center, a market balanced between supply and demand has between 6.0 and 6.5 months of inventory. Median home price increased 8% from the prior year to $259,230. Price class distribution showed that the largest percentage of homes sold across the state (34.5%) fell in the $200,000-$299,000 price range.
Active listings statewide declined 22.1% from 2019 to 2020. Homes spent an average of 55 days on the market, four days less than 2019.
Texas REALTORS® Chairman Marvin Jolly said, “Rising home prices coupled with the housing shortage has made affordability a challenge across our state. These issues remain top of mind for Texas REALTORS® as we continue through the 87th legislative session. We will continue to champion legislation that will ensure homeownership remains attainable and a sound investment for years to come.”