A new report from the Texas Real Estate Research Center at Texas A&M University predicts Texas’ single-family home sector will continue to see increased sales in 2021.
“Texas single-family sales are expected to maintain a rapid clip this year with an 8.4% projected increase,” said Research Economist Dr. Luis Torres in the report. “That assumes mortgage rates remain relatively low, and the economic reopening continues as vaccines are widely distributed.”
While total Texas housing sales stabilized in November following record-setting levels the previous month, average days on market fell to just 44 days, indicating steady demand as mortgage interest rates reached all-time lows.
The report noted that Texas home sales would be even stronger if not for persistently low inventories. Calling the lack of housing inventory “extreme,” Torres said the depleted inventory contributed to double-digit annual growth in the median home sales price.
“The shortage of homes priced less than $300,000 pushed buyers toward higher-priced homes,” he said. The Texas Real Estate Research Center’s Repeat Sales Home Price Index also accelerated, revealing threats to recent improvements in affordability.
Robust construction activity should provide much-needed injections into the supply of active listings, said Torres, but home-price growth should still be positive due to solid demand and limited inventory.