For the fifth consecutive year, the Texas housing market broke records in terms of the number of homes sold and median price.
According to the 2019 Texas Real Estate Year in Review report, home sales across the state increased 4% in 2019, with 357,238 homes sold. This is a smaller increase than the 4.4% increase in 2018. Median home price increased 3.2% from the prior year to $240,000. Price class distribution showed that the largest percentage of homes sold across the state (33.1%) fell in the $200,000-$299,000 price range.
Jim Gaines, Ph.D., chief economist with the Real Estate Center at Texas A&M University, explained, “2019 was another record-breaking year in Texas real estate. We saw the rates of increase for median price and sales volume normalize. The national housing market is predicted to be one of the strongest parts of the economy this year, and in Texas we’re expecting another record-breaking year as home construction picks up and interest rates remain low.”
Housing inventory across the state decreased 0.1 months to 3.1 months of inventory in 2019. According to the Real Estate Center, a market balanced between supply and demand has between 6.0 and 6.5 months of inventory. Homes spent an average of 59 days on the market, one day more than 2018. Active listings statewide increased 5.8% from 2018 to 2019.