Q2 Texas Housing Market Trends
Like L&P, the Texas Housing Market is always evolving. Price changes, inventory supply, and interest rates all play a pivotal role in the homebuyer’s decision-making. They can be why and when people tend to purchase homes, especially for first-time homebuyers. Let L&P be your guide to the Texas housing market and how you can best prepare yourself for your home-buying experience
Median Home Prices
In Texas, the median home price saw a slight increase of 0.6% year-over-year, up to $345,000. This growth is modest compared to previous years and shows a stabilization in the market compared to the rapid increase seen in previous years. This median home price increase was nominal, increasing the median home price less than the previous year’s increase and the year-over-year inflation rate.
Increase in Inventory Supply
Texas Inventory supply has increased in the past few quarters, with an estimated 4.6 months of inventory available for purchase. This is nearly a 50% increase from the previous year’s Q2 which had an estimated 3.1 months of inventory available for purchase. Although the inventory supply has been increasing, we are still seeing similar numbers to this time last year regarding how long houses stay on the market. Houses tended to stay on the market for around 54 days this year and spent an additional 34 days until closing, which saw a similar number of days on the market from 2023 Q2.
This inventory supply rate varies among different areas of Texas, as cities near the Gulf Coast are seeing a supply inventory rate as high as 8.2 in Brownsville, with Corpus Cristi (7.1), McAllen (6.8), and Beaumont (5.2) being well above the States total inventory supply rate. Larger cities varied in housing inventory supply rates, with Dallas being below the state’s average at 3.8 months’ worth of inventory. Houston (4.2), Austin (4.8), and San Antonio (5.2) all had higher inventory levels than the state’s average for the 2024 quarterly housing market update.
Pricing and Distribution
Despite this increase in inventory in the state of Texas, home sales have decreased over the past year by 3% from Q2 2024 to Q2 2023, with 93,417 homes selling this quarter. Over 50% of the homes purchased in Q2 of 2024 had a price range of between $200,000-$399,999, and homes over $500,000 made up 24.2% of the total homes bought in the state last quarter.
Interest Rates
Interest rates from Q2 2024 varied between 6.5%-7%. This is pretty standard compared to average rates for the past 3 years, having increased dramatically following the end of the pandemic. Homebuyers can expect these interest rates to remain fairly stable for the remainder of 2024.
Why L&P Marketing?
L&P has used our decades’ worth of combined experience to help real estate clients find homebuyers by leveraging a variety of marketing resources. L&P is a full-service marketing agency that uses a wide selection of services that help these clients generate and nurture leads and uses advanced targeted advertising to reach potential homebuyers effectively. Housing market updates play a significant role in this process as housing supply, interest rates, and other economic trends can affect buyer behavior, and thus affect the overall lead generation. L&P is careful to take these and other factors into consideration when providing an overall analysis of our client’s account status. If you want to find out more about how we service our clients through changing market conditions, contact us today.
