Houston’s average sales price for newly constructed homes rose to $427,191 in July, up from $426,314 in June. According to the New Home Sales Report from HomesUSA, this is a good indicator of the current market’s health.

“For the past year, new home prices have been flat to slightly down but remain close to near their all-time peak,” said HomesUSA CEO Ben Caballero. “New home sales in Houston are healthy, as new home supply and demand continue to move towards a balance that is good for builders and buyers alike.”

While slightly down from June’s levels, new home sales remained strong in July with 1,875 closings. New homes also sold faster during July — average days on the market fell to 102.97 days, up from 107.23 days the prior month.

Caballero says Houston builders must keep up the pace of construction in order to meet consumer demand in the coming years. “It takes months to plan, build and deliver new homes and two years for developers to deliver building sites, during which time interest rates and government policy can change,” he added. “Because of the strong growth in Houston, it is vital that builders continue to generate more inventory, and they are doing their jobs well, despite all of the challenges in the market today.”