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Overview of Texas Housing Market in 2024

The Texas housing market experienced stability in 2024, showcasing not only modest increases in both home sales and prices but also a remarkable expansion in availability for buyers. According to the Texas Realtors' recently published Annual Summary Report, the data indicates a significant shift in market dynamics, providing home buyers with a broader array of choices than in previous years.

Sales and Price Trends

The report highlights that the total number of homes sold in Texas varied across 26 metropolitan areas, with a positive uptick noted in 14 markets and slight reductions in 12 others. While these fluctuations may seem nominal at first glance, they hold significance in understanding buyer sentiment and market conditions. The most notable increase in sales occurred in the Lubbock metropolitan area, reflecting a 4.3% rise, while Beaumont-Port Arthur saw a decrease of 6.8% in the same period. Overall, the state recorded a marginal increase of 0.7% in home sales.

When it comes to pricing, the average home sale price saw a gentle rise of 1.2%. This increase was observed in 20 market areas, while four experienced declines, and two remained stable. Odessa recorded the most significant price uptick at 11%, providing a contrasting portrait to Austin-Round Rock-San Marcos, which faced a downturn of 2.2% in home prices. Notably, the latter region continues to hold the title for the highest average sale price in Texas at $440,000, while Wichita Falls reported the lowest at just $195,000. Furthermore, the average price per square foot across Texas experienced an increase of 0.7%, signifying ongoing demand for residential properties, despite a notable increase of 50.9% since 2017.

Increased Housing Availability

A crucial highlight from the report is the rise in housing inventory, which significantly improved buyers' prospects. The average inventory period, measuring how long it takes to sell a home at the current pace of sales, reached 4.1 months statewide, marking an increase of 3.4 months compared to 2023. Insights from the Texas Real Estate Research Center suggest that a balanced market typically sees inventories of four to five months, indicating that buyers now have more bargaining power.

The data also reveals a substantial 30.5% increase in housing supply by the end of 2024 compared to the same time in the previous year. This trend was evident across nearly all markets, with Odessa being the only exception that saw a minor decrease. Through a concerted effort to boost homeownership opportunities, Texas Realtors continue to advocate for more availability and guidance for prospective buyers throughout the purchasing process.

Expert Insights

Christy Gessler, President of Texas Realtors, provided context to these trends, indicating that post-pandemic buyer attitudes have evolved. Many buyers exhibited caution in 2024 due to sustained high home prices and relatively elevated interest rates, which remain above the historically low levels some buyers previously encountered. Inflation also played a role, deterring potential homebuyers and making it more challenging to enter the market.

Conclusion

In summary, the Texas housing market in 2024 showcases incremental growth in both sales and prices while simultaneously offering a wealth of new options for buyers. The data speaks volumes about the changing landscape of home buying in Texas and outlines both the opportunities and challenges that lie ahead for prospective homeowners. Texas Realtors remain committed to facilitating a smooth and supportive home buying process, further underscoring the importance of informed real estate decisions in these evolving market conditions.