The Texas housing market set records for home sales and median price for the fourth consecutive year, according to the 2018 Texas Real Estate Year in Review report released by Texas REALTORS®.
There were 344,030 homes sold in Texas in 2018, and the median home price was $232,900.
“The unprecedented real estate market activity in Texas in 2018 is a testament to the state’s business-friendly atmosphere and strong economy,” said Tray Bates, 2019 chairman of Texas REALTORS®. “It’s worth noting, though, that the rate of sales and price increases has cooled off a bit compared to prior years.”
The 1.7% increase in home sales in 2018 compares to jumps of 4.1%, 4.5%, and 4% in 2017, 2016 and 2015, respectively. Similarly, the 4.4% increase in median home price for 2018 was lower than the 6.2%, 7.7%, and 7.1% increases of the past three years.
“Despite another record-breaking year in the Texas housing market, home sales activity around the state slowed due to continued shortages in housing inventory and increased interest rates,” said Jim Gaines, chief economist with the Real Estate Center at Texas A&M University. “We’re anticipating this will affect new home construction in 2019 due to the cost of land, shortage of labor, and increased turnaround time for permitting.”
Active listings increased 1.4% from 2017 to 2018, and housing inventory across the state increased 0.2 months to 3.3 months of inventory. A market balanced between supply and demand has between 6.0 and 6.5 months of inventory, according to the Real Estate Center.