Texas facing the same story of Low Inventory and High Home prices

According to the 2020 Texas Real Estate Year in Review report released by Texas Realtors, this is the sixth consecutive year, where the Texas housing market broke records in terms of the number of homes sold and median price, while inventory levels hit an all-time low.

Marvin Jolly, 2021 chairman of Texas Realtors said, that because the housing inventory dropped to historically low levels in many areas of the state, resulting in a shortage of homes for sale making many markets extremely favorable to sellers and challenging for buyers.

In 2020, home sales across the state increased to 9.5%, with 393,615 homes sold. Which is 3.8% more than 2019.

According to the Texas Real Estate Research Center, the housing inventory dropped to 1.7 months, which is, a decrease of 1.3 months from 2019, and the market balanced between supply and demand.

The median home price increased to $259,230 which is 8% higher than 2019. The largest percentage of homes sold across the state fell in the price range of  $200,000-$299,000.

Luis Torres, Ph.D., a research economist with the Texas Real Estate Research Center at Texas A&M University, explained, that the 2021 housing market will be characterized by strong demand with low inventories along with strong price growth. 

The inventories of homes priced under $300,000 will be low, affecting sales in that price range. 

The economic recovery supported by the additional federal fiscal stimulus and vaccination rates is all contributing to housing demand in Texas.

From 2019 to 2020 the active listings statewide fell 22.1%. Homes spent an average of 55 days on the market, whereas in 2019 it would be around 59 days.

The low inventory and rising home prices have made affordability a challenge across the state.  Texas Realtors will ensure homeownership remains attainable and a sound investment for years to come said, Chairman Jolly.