Houston new home sales slow as homes stay on market for longer

by Emily Marek

Demand for new homes remains strong throughout Houston, according to HomesUSA’s latest New Residential Sales Report. Despite this, overall sales as measured by days on the market continue to trend downward.

The 3-month moving average of days on the market in Houston reached 93.33 days in February, compared to 85.09 days in January. A year ago, new homes spent an average of 74 days on the market. By the number of transactions, however, new home sales have actually ticked up month-over-month: 1,618 new homes were sold in February, compared to 1,578 in January.

“Overall, throughout Texas, new home sales continue to be surprisingly strong,” commented HomesUSA CEO Ben Caballero. “Houston builders are working hard to avoid big price cuts by offering more buyer incentives and agent bonuses. You are also likely to see the average size of a new home become somewhat smaller as builders look to maintain affordability.”

Price cuts have nevertheless hit the Houston market, with the average price of a new home dropping by $9,700 to $405,019 in February. The national average sales price for new builds is $498,700.

HomesUSA compiled its report using data from Realtor associations across Texas, as well as data from the U.S. Census Bureau and the Department of Housing and Urban Development.

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