Texas REALTORS® released their 2023 Texas Real Estate Year in Reviewreport, noting a nearly 11% decline in home sales in Texas last year. Jef Conn commented on the impact of higher mortgage rates on the market, stating, “While higher mortgage rates kept some buyers on the sidelines last year, that has led to a lot of pent-up demand.” He also mentioned that sales have started to pick up early in the year, indicating an active market for the upcoming spring.

In terms of median prices, the report highlighted mixed trends in 2023. Median prices in 8 metro areas decreased while 17 metros saw an increase. The Austin-Round Rock MSA experienced the biggest drop in median price at -10.4%, but it still maintained the highest median price in Texas at $450,000. El Paso and McAllen-Edinburg-Mission recorded the highest increases in median price at 7.6% and 6.8%, respectively.

The report also noted an increase in months of inventory, except for Midland and Odessa, where it decreased slightly. Homes spent more time on the market statewide, with an average of 55 days, 20 days more than in 2022. Price per square foot in Texas edged up 0.1% statewide, with El Paso and the Rio Grande Valley showing the largest increases.

Conn emphasized the varying market conditions across Texas, stating, “Despite headwinds from mortgage rates, Texas real estate sales continued at a healthy pace in 2023.” He advised working with a REALTOR® who is knowledgeable about the specific area to navigate the diverse real estate landscape effectively.