The new home market across Texas is seeing homes stay on the market longer and a moderate softening of average prices as the market “seeks balance,” according to the monthly HomesUSA.com New Home Sales Report released today by HomesUSA.com CEO Ben Caballero.
The HomesUSA.com New Home Sales Report uses Multiple Listing Services data from the Realtor Associations of North Texas, Houston, Austin, and San Antonio.
Caballero noted that the HomesUSA.com New Home Sales Index slowed dramatically for the sixth straight month. The 3-month moving average for Days on Market for the four largest markets in Texas hit 92.15 days in February versus 83.29 days in January. Last February, Days on Market averaged 58.73 days in Texas*, since then the average DOM increased by 57%.
The 3-month moving average of new home sales in Texas for February was up, with 4,585 new homes sold versus 4,344 homes sold in January. “While the average new home sales were higher, the Days on Market continued to rise as the market seeks balance in – Houston, Dallas-Ft. Worth, Austin and San Antonio,” Caballero said, adding, “Overall, Texas new home sales continue to be surprisingly strong.”
Caballero also points out that the 3-month moving average for Texas new home prices was moderately lower cumulatively and individually in the state’s four major markets. “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,” Caballero said.
The 3-month average for total new home sales in Dallas-Ft. Worth last month was 1,670 versus 1,505 in January. In Houston, new home sales in February were 1,618 versus 1,578 in January. Austin posted February new home sales of 726 versus 716 in January, while in San Antonio, February new home sales were 571 versus 546 in January.
New home prices in Texas were moderately lower and in all four major new home markets. Last month, the 3-month moving average of Texas new home sales prices was $453,104 versus $460,083 in January.
The 3-month moving average price for new homes in Austin, which continues to have the highest-priced new homes in the state, declined in February to $518,407 versus $523,931 in January. In Dallas-Ft. Worth, the average new home price decreased in February to $493,722 versus $501,763 in January. Houston’s average new home price dropped in February to $405,019 from $414,728 in January. In San Antonio, the average new home price in February was $387,724 versus $393,316 in January.
Local MLSs data also indicates the market is seeking balance, as active listings of new homes were off slightly last month. The 3-month average of active listings in Texas’ four largest markets for February was 28,127 versus 28,465 versus in January.
Finally, pending new home sales reported to the four major MLSs in Texas jumped again last month to their highest level in the last 12 months. The 3-month moving average of pending new home sales in February was 5,990 versus 5,245 in January.
The HomesUSA.com monthly report is based on closed sales recorded inside the MLSs by the 10th day of the following month. Sales reported late by agents are not included. The report features 3-month and 12-month moving averages for six essential market data, including Days on Market, sales volume, sales prices, a sales-to-list price ratio, pending sales, and active listings. Caballero explained the 3-month moving average indices track market seasonality, while the 12-month moving average removes the seasonality and tracks the longer trend.
Click here to view the full report from HomesUSA.com, including charts.
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