By Bridgette Maryland
Texas home sales jumped a record 24.7% in the second quarter of 2021, with a reported 114,772 homes sold, according to the 2021-Q2 Texas Quarterly Housing Report from Texas Realtors.
“Texas is in the middle of a record-breaking summer selling season with unprecedented demand for housing,” Marvin Jolly, chairman of Texas Realtors, said in a press release. “Across the state, buyers are having to compete more than ever for houses, leading to a strong increase in home prices.”
Homes priced from $200,000 to $299,999 were the biggest sellers, making up 30.1% of the total market. The median price of a Texas home jumped 19.1% to $300,490.
Luis Torres, Ph.D., a research economist with the Texas Real Estate Research Center at Texas A&M University, said the limited inventory of homes priced at under $300,000 is “distressing” and stressing home affordability.
“The extremely low level of supply available is holding back sales and pushing up prices, as mortgage rates are still hovering around 3%, the economy is expanding and ongoing demographic trends continue to support housing demand,” Torres said.
Texas’ housing inventory declined to 1.4 months in Q2, down from 2.9 months a year ago. The Texas Real Estate Research Center at Texas A&M University defines a balanced market as having between 6.0 and 6.5 months of inventory.
“With such high demand and rising prices, buyers and sellers are relying on their Realtor more than ever to help them navigate this highly competitive market. Many sellers are in the enviable position of getting multiple offers above asking price but are finding there’s more to choosing the best offer than simply going with the highest price,” Jolly said. “Factors such as appraisal waivers, earnest money, and termination options can all come into play.”