New-home sales increased in Texas last month, according to the latest report from HomesUSA. Statewide, 6,106 new-homes were sold in May versus 5,899 in April.

In Houston, new-home sales increased by 3% month over month, with 2,093 homes sold in May compared to 2,036 in April. That makes Houston the No. 1 city in Texas for new-home sales.

Despite this increase, HomesUSA CEO Ben Caballero still voiced concerns about the outlook for the Texas new-home market.

“While Houston new-home sales were slightly higher in May, their moderate seasonal strength does not bode well for the rest of 2024,” Caballero said in the report. “Pending sales numbers — an indicator of future sales — are flat and are confirming my concern.”

Houston registered 2,188 pending new-home sales in May, up only marginally from the 2,176 new-homes that went under contract in April.

Caballero added that active listings continue to pile up across Texas as builders struggle to move inventory amid high interest rates: “Local builders are working hard to reduce that inventory.”

Meanwhile, the price of a new-home in Houston increased to $411,767 in May, up from $405,602 in April.