Real estate signifies a considerable percentage of most people’s wealth, and this is particularly true for numerous homeowners in the U.S.
You’ll find that the scale and size of the real estate market make it a lucrative sector in numerous investors. In Texas, home sales increased nearly 5% in the first quarter of 2017 in comparison with a similar period last year.
Although the state leads the nation in new development of homes, experts assert that its fast pace of housing development isn’t sufficient to keep pace with housing demand and population growth throughout the state. Here’s an overview of Texas real estate.
Texas Real Estate
A report completed by the Texas Association of Realtors reveals that median sales prices for homes increased 9.4% to $213, 325 while real estate agents sold 68, 420 homes during the first three months this year.
The largest price increase among the major Texas markets was in the Dallas-Fort Worth Area, where median costs were 13.3% higher compared to the first quarter last year. It’s also important to note that the number of D-FW home sales that real estate agents handled increased 2.4% from first quarter last year.
Agents made 20,544 sales of D-FW properties through the multiple listing service. Houston on the other hand had the largest sales gain among the major markets, up 6.7% from last year’s first quarter.
Reports reveal that the number of homes agents listed for sale statewide increased 6% year-over-year while homes took 64 days on average to sell statewide. In terms of housing inventory, it increased 0.1 months from the first quarter last year to 3.6 months.
Bear in mind that this is the first time since 2011 that monthly inventory statewide has posted yearly gains in the first quarter. Nevertheless, there’s an increasing shortage of lower-priced housing that’s hindering the ability for residents to afford a home.
Home Sales in North Texas
In May, the cost of pre-owned homes sold in Northern Texas increased another 10% from the previous year. Home prices registered a median of $255,000 within the area and these prices don’t show any signs of a cool down.
Experts don’t see the price growth changing while demand continues to surpass supply. Real estate agents in North Texas sold 10, 939 single-family homes in May while home sales were 15% higher than in May last year.
Beware that the housing market in North Texas continues to experience a shortage of home listings, particularly below $300,000. With demand surpassing the supply of first move-up and starter homes, it has become common to view multiple offers above or at asking price for the more affordable homes as they enter to the market.
The challenge is that there simply isn’t sufficient housing stock for households seeking affordable, well-located homes. Neighborhoods that experienced some of the largest year-over-year home sales gain in May include Fairview, Oak Cliff, and North Dallas.
Another important aspect to bear in mind is that during the first five months this year, real estate agents have sold 40, 592 houses. The figure represents an increase of 5% from a similar period the previous year.
If you’re thinking of investing in real estate in Texas, perhaps you should check out this invaluable guide.
For more information on Texas real estate, contact us at Apartment Agents or leave a comment.