Active listings of Texas homes for sale reached 125,398 in the second quarter of this year, marking an increase of nearly 41% compared to the same period last year, according to the Texas Quarterly Housing Report released today by Texas REALTORS®. The statewide median price rose slightly by 0.6% to $345,000 compared to Q2 2023, while the number of homes sold decreased by 3% to 93,417.
"Interest rates are a big part of the story," said Jef Conn, chairman of Texas REALTORS®. "With today’s higher rates, some buyers are sitting on the sidelines and hoping rates or home prices come down."
Conn also observed that some sellers are holding out for higher prices reminiscent of those seen during the pandemic. "Homeowners who want to sell quickly will want to make sure their home is in good condition and priced competitively," he added.
The report highlighted changes in median prices across various Texas markets. Median prices increased in 22 metros and decreased in four. The most significant increases were noted in Odessa (11.7%), Abilene (11.2%), San Angelo (8.4%), and Midland (6%). Conversely, Austin-Round Rock-San Marcos (-3.2%), Lubbock (-4.1%), San Antonio (-1.3%), and Texarkana (-2.5%) saw moderate declines.
An increase in listings pushed months of inventory higher from 3.1 months at the end of Q2 last year to 4.6 months this year—the highest level recorded in at least eight years. Odessa was unique among Texas markets as it experienced a decline in months of inventory and was the only area with fewer listings compared to a year ago.
Statewide, homes spent roughly the same number of days on the market as they did during Q2 last year; however, days on market increased in 20 metro areas and decreased in six.
"While it’s important to consider current market conditions, even the best economists don’t have a crystal ball for future mortgage rates and home prices," Conn stated. "So while it may be tempting to wait for rates to fall or prices to rise or drop to some level, the most important factor for buyers and sellers is their own situation. When you’re clear about your real estate goal, a REALTOR® can help guide you through the important decisions to get you there."
