Despite a drop in new-home sales in Houston, HomesUSA CEO Ben Caballero says all signs point toward market stabilization.

According to the HomesUSA New Home Sales Report, new-home sales dropped incrementally from May to June, with 1,951 new-home sales last month compared to 2,011 the month prior. Meanwhile the average new-home price has also fallen from $427,401 to $426,314.

“Overall, the new-home market is doing well as it is becoming more balanced in Houston compared to last year at this time. This sales plateau follows a very good upward market that began in the fall of 2021,” Caballero said. “I expect sales to move sideways to lower the rest of the year as market seasonality kicks in. If sales continue to increase the rest of the year, it will indicate that we are in an extremely strong housing market.”

Average days on market also decreased slightly in Houston. In May, the average home sold in approximately 109 days. That number fell to about 107 days in June.

“Remember, when comparing days-on-market for new homes and existing homes, new homes have a higher DOM because most are listed while under construction,” Caballero added. “New-home sales are benefiting from the low inventory of existing homes.”