Texas new home seasonal sales struggle as economic headwinds continue
1-ranked real estate agent and CEO and founder of HomesUSA.com, points to economic headwinds holding back seasonally strong sales.
DALLAS, April 22, 2024 (GLOBE NEWSWIRE) -- While Texas new home sales were slightly higher last month, the spring homebuying season is “underperforming,” according to the newest monthly Texas New Home Sales Report released today by HomesUSA.com and its founder and CEO, Ben Caballero, the nation's top-ranked real estate agent.
The HomesUSA.com New Home Sales Report uses Multiple Listing Service data – the most comprehensive, current, and accurate information – from the Realtor Associations of North Texas, Houston, Austin, and San Antonio.
March new home sales in Dallas-Ft. Worth, Houston, Austin, and San Antonio combined show a slightly higher 3-month moving average of 5,393 sales versus 5,180 in February.
In Dallas-Ft. Worth, March new home sales totaled 1,717 versus 1,657 in February. Last month, Houston’s new homes were 1,848 versus 1,827 in February. Austin posted new home sales in March, totaling 850 versus 816 in February. San Antonio was the sole market that saw a significant increase in March new home sales, with 978 versus 880 in February.
Despite the uptick in new home sales, Ben Caballero, America's No. 1-ranked real estate agent and CEO and founder of HomesUSA.com, points to economic headwinds holding back seasonally strong sales.
“The Texas spring homebuying season is underperforming as the new home sales recovery has been unimpressive,” said Caballero. “New home markets throughout Texas are struggling to return to normal seasonality,” he added.
“We are grateful for the strong Texas economy, which is keeping builders viable, but we need lower and more stable mortgage rates to improve affordability,” Caballero noted.
According to the HomesUSA.com New Home Sales Index’s 3-month average, Days on Market increased in three of the four largest new home sales markets in Texas. Houston, Dallas-Ft. Worth, and San Antonio all saw increases in their 3-month DOM averages. Overall, the Days on Market were 110.26 days in March versus 106.35 days in February.
Texas home prices last month overall were stable. The average 3-month new home price average among the four largest Texas new home markets in March was $428,682 versus $430,533 in February. Average new home prices were slightly higher in Dallas-Ft. Worth ($473,399 versus $472,877), while Austin jumped over $7,000 ($509,847 versus $502,264). Prices were slightly lower in Houston ($397,315 versus $402,706) and San Antonio ($338,211 versus $342,506).
Pending sales were higher for the third consecutive month, as the average 3-month pending sales were higher in each of the four largest Texas new home markets, and the four-market average in March totaled 6,943 versus 6,360 in February.
Active new home listings remained relatively flat again for the fourth month in a row, as new inventory also remained stable. The March 3-month average active listings inventory in Texas' four major new home markets was 29,421 versus 29,272 in February.
HomesUSA.com is sharing its New Home Sales Report and New Home Sales Index before the Commerce Department releases its nationwide New Residential Sales Report for March, set for Tuesday, April 23, 2024, at 10:00 am Eastern time.
The HomesUSA.com monthly report covers closed sales recorded in MLSs by the 10th day of the following month. Sales reported by agents after the 10th of the month 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.
Days on Market Trends Higher – New Homes in Texas (Exclusive Data)
The HomesUSA.com New Home Sales Index showed the 3-month moving average of Days on Market (DOM) in March increased in three of the four major new home markets in Texas. In Dallas-Ft. Worth, the DOM increased to 138.65 days versus 127.80 days in February. Houston’s DOM was 97.89 days versus 96.11 days in February. In San Antonio, the DOM was 90.11 days versus 86.61 days in February. Austin was the exception, as the DOM decreased to 103.17 days versus 107.84 days in February. New homes have significantly higher Days on Market or DOM than existing homes because most are listed while under construction. (See Chart 1: Texas New Homes Days on Market)
Texas New Home Sales Tick Higher
Based on all local MLS data, the most reliable and current source of all home sales activity, total new home sales were higher in all four of Texas' largest new home markets last month. The March 3-month moving average of new home sales in Dallas-Ft. Worth was 1,717 versus 1,657 in February. In Houston, March’s total sales were slightly higher at 1,848 versus 1,827 in February. Austin's new home sales last month were also slightly higher at 850 versus 816 in February. In San Antonio, new home sales in March were 978 versus 880 in February. (See Chart 2: Texas New Home Sales)
Texas New Home Prices Remain Stable
The average prices of new homes were stable overall in Texas last month. In Dallas-Ft. Worth, the 3-month moving average price for new homes in March was $473,399 versus $472,877 in February. In Houston, the average new home price in March was $397,315 versus $402,706 in February. In Austin, the 3-month moving average price increased in March to $509,847 versus $502,264 in February. San Antonio's average new home price was lower in March at $338,211 versus $342,506 in February. (See Chart 3: Texas New Home Prices)
Texas Sales-to-List Price Ratio Remain Stable
Cumulative new home sales remain slightly lower than 100 percent of the asking price. The combined 3-month moving average of the sales-to-list price ratio in Texas’ four largest markets for March was 97.22 versus 98.94 percent a year ago and 97.25 percent in February this year. Dallas-Ft. Worth’s ratio in March was 97.54 versus 99.50 percent last March and 97.48 percent in February this year. In Houston, the ratio in March was 96.89 versus 98.45 percent last March and 97.24 percent in February this year. In Austin, the sales-to-price ratio in March was 97.33 versus 99.36 percent last March and 97.14 percent in February this year. San Antonio's ratio in March was 97.20 versus 98.83 percent a year ago and 96.94 in February this year. (See Chart 4: Texas Sales-to-List Price Ratio)
Texas Pending New Homes Sales Rebound
Based on local MLS data, pending new home sales continued to improve last month, as the average 3-month pending sales were higher in each of the four largest Texas new home markets. The combined four-market average in March totaled 6,943 versus 6,360 in February. In Dallas-Ft. Worth, pending new home sales last month were 2,484 versus 2,290 in February. In Houston, pending new home sales in March increased to 2,064 versus 1,854 in February. In Austin, pending new home sales in March were higher at 1,340 versus 1,230 in February. San Antonio also saw higher pending sales last month at 1,054 versus 986 in February. (See Chart 5: Texas Pending New Home Sales)
Texas Active Listings for New Homes Remain Flat
Unlike existing home listing inventory, which is up 21 percent since last September, active new home listings remained flat again in March. The March 3-month average active listings inventory in Texas’ four major new home markets was 29,421 new homes versus 29,272 in February. Local markets were mixed. Dallas-Ft. Worth's active listings in March were 6,551 versus 6,565 in February. Active listings in Houston last month were 12,225 versus 12,090 in February. In Austin, active listings in March were 5,661 versus 5,590 in February. In San Antonio, active listings last month were 4,984 versus 5,027 in February. (See Chart 6: Texas Active Listings and Chart A: 12-Month Moving Averages)
About the HomesUSA.com New Home Sales Index
The HomesUSA.com Index is reported as both a 3-month and 12-month moving average of the Days on Market (DOM) for new homes listed in the local Multiple Listing Services (MLSs) for Dallas-Ft. Worth, Houston, Austin, and San Antonio. Created by Ben Caballero, it is the first Days on Market index to track the Texas new home market and includes homes listed while under construction.
*Note: Texas data denotes a combination of its four largest new home markets – Houston, Dallas-Ft. Worth, Austin, and San Antonio – which comprise the vast majority of new home sales and MLS data statewide.
About Ben Caballero and HomesUSA.com®
Ben Caballero, founder and CEO of HomesUSA.com, is a three-time Guinness World Record title holder for ‘Most annual home sale transactions through MLS by an individual sell-side real estate agent – current.’ Ranked by REAL Trends as America’s top real estate agent for home sales since 2013, Ben is the most productive real estate agent in U.S. history. He is the only individual real estate agent to exceed $3 billion in residential sales transactions in a single year (2022), the first agent to exceed $2 billion (2018, 2019, 2020), and the first agent to exceed $1 billion (2015, 2016, 2017). Ben, an award-winning innovator and technology pioneer, works with more than 60 home builders in Dallas-Fort Worth, Houston, Austin, and San Antonio. His podcast series is available on iTunes and Google Podcasts. Learn more at HomesUSA.com |Twitter: @bcaballero - @HomesUSA | Facebook: /HomesUSAdotcom.
Note for journalists: You may contact Ben Caballero directly on his cell at (214) 616-9222 or by email at [email protected].
REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.
Media Contact:
Kevin Hawkins
(206) 866-1220
[email protected]
Image: Ben Caballero (2023)
https://homesusa.com/wp-content/uploads/2023/04/Ben_Caballero_1-scaled.jpg
Individual Chart images:
Chart 1: Texas New Homes Tracking – Days on Market – March 2024: https://homesusa.com/wp-content/uploads/2024/03/Chart-1-Texas-New-Homes-Tracking-Days-on-Market.jpg
Chart 2: Texas New Home Sales Market – March 2024: https://homesusa.com/wp-content/uploads/2024/03/Chart-2-Texas-New-Home-Sales-Market.jpg
Chart 3: Texas New Home Sales Prices Market – March 2024: https://homesusa.com/wp-content/uploads/2024/03/Chart-3-Texas-New-Home-Sales-Prices-Market.jpg
Chart 4: Texas Sales-to-List-Price Ratio Market – March 2024: https://homesusa.com/wp-content/uploads/2024/03/Chart-4-Texas-Sales-to-List-Price-Ratio-Market.jpg
Chart 5: Texas Pending New Home Sales Market – March 2024: https://homesusa.com/wp-content/uploads/2024/03/Chart-5-Texas-Pending-New-Home-Sales-Market.jpg
Chart 6: Texas Active Listings for New Home Market – March 2024: https://homesusa.com/wp-content/uploads/2024/03/Chart-6-Texas-Active-Listings-for-New-Homes-Market.jpg
Chart A: Texas 12-Month Moving Averages Market – March 2024: https://homesusa.com/wp-content/uploads/2024/03/Chart-A-12MonthChart-DataOnly.jpg
