July was yet another banner month for the real estate market across Texas. In all major markets, we are seeing record setting numbers for multiple metrics such as appreciation rates and number of closed sales.
“Pent-up demand from the spring fueled housing activity across the state,” said Dr. James Gaines, chief economist for the Real Estate Center at Texas A&M University.
Home sales in Texas increased 13.5% this July as compared to July 2019. With the FED keeping rates at historic lows, we are seeing buyers locking in mortgage interest rates at 2.8% for 30 year fixed loans. With rates this low, even buyers wary of an eventual downturn understand the value of buying now with that low of a rate, as opposed to waiting for prices to drop and risking higher interest.
- 10% Increase in Median Sales Price ($353,000)
- 21% Increase in closed sales (4,537)
- 3 day reduction in days on market (44 days
- 13% increase in new listings (4,767)
- 32% reduction in active listings and a 32% increase in pending sales
- Currently sitting at a staggeringly low 1.7 months of inventory
- 9.4% Increase in median price ($269,000)
- 22.1 increase in closed sales (44,319)
- 24.6% decrease in active listings
- 2.8 months of inventory compared to 3.9 in July 2019
- Average days on market is 55, up 5 from July 2019
- 23% increase in homes sold
- Median value climbed over 8.7% ($272,000)
- New listings down a 5th consecutive week as pending sales climb
- 25% increase in homes sold
- 10% increase in average sales price ($302,068)
- Average days on market are 57 an 8% increase
Across all markets, homes under $300,000 are flying off the shelves at an alarming rate. Bidding wars are common place and buyers are scrambling to secure their new homes. We are still sitting in a sellers market.
With the moratoriums on foreclosures coming to an end for Fannie Mae and Freddie mac held loans on August 31st, we can expect to see a large wave of foreclosures hit. In the second quarter, late FHA loans rose to almost 16%, with 6.7% delinquency rate for conventional loans. Investors who have spent years at the courthouse steps bidding on properties have been sitting on the sidelines for months. That is going to change come September.
According to Mike Delprete, the ibuyer market has plummeted with Opendoor, Zillow Offers and Redfin Now down over 90% on purchases compared to pre-pandemic. The drastic reduction stems from safety concerns as well as a volatile market too difficult to forecast. They are back to purchasing, but all have taken an extremely cautious approach.
Aaron Jistel – Co-Founder/Chief Real Estate Officer
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