Texas home builders see record sales but Days on Market jumps
HomesUSA.com reports record inventory, average prices mixed
News provided byHomesUSA.com
Jan 24, 2023, 10:01 AM ET
DALLAS, Jan. 24, 2023 (GLOBE NEWSWIRE) -- Texas home builders saw record new home sales last month for 2022. Still, inventory continues to climb, also setting a new record, and it’s taking longer to sell a home, according to a new HomesUSA.com New Home Sales Report released today by Ben Caballero, the nation’s top-ranked real estate agent and HomesUSA.com CEO.
The HomesUSA.com New Home Sales Report uses Multiple Listing Services data – the most complete, current, and accurate information available – from the Realtor Associations of Austin, North Texas, Houston, and San Antonio.
Caballero notes that the 3-month moving average of Texas’ new home sales in its four largest markets increased in December to 4,467 from 4,103 in November – a record for the year. However, the HomesUSA.com New Home Sales Index shows the pace of new home sales also slowed for the fourth straight month. The statewide 3-month moving average for Days on Market in December jumped by more than 10 days, increasing to 73.57 days versus 63 days in November.
“Overall, Texas builders defied market expectations as December was the top sales month for 2022 – rarely the best month of the year for sales,” said Caballero. “While builders may be struggling on several fronts as home buyers face higher interest rates, in Houston, Dallas, Austin and San Antonio, builders are showing remarkable resilience. In terms of total new home sales, Texas continues to buck the national trend,” he added.
According to Caballero, home prices appear to be stabilizing. The 3-month moving average of new home sales prices statewide were slightly higher last month at $463,514 from $461,511 in November.
Austin and San Antonio recorded higher average new home prices last month – both experiencing increases of over $10,000 and $8,000 respectively. The 3-month moving average price for new homes dropped in the state’s two biggest markets: Houston and Dallas-Ft. Worth.
The 3-month moving average price for new homes in Austin, which continues to have the highest-priced new homes in the state, increased in December to $533,703 versus $523,723 in November. San Antonio’s average new home price in December was $396,487 versus $388,183 in November. Houston’s average new home price decreased in December to $423,512 from $427,038 in November. In Dallas-Ft. Worth, the average new home price declined in December to $501,789 from $502,466 in November.
Still, builders are facing mounting pressure as building inventory also hits a record high for the year. Local MLSs show the 3-month average of active listings in Texas’ four largest markets for December climbing to 28,088 from 27,146 in November. The number of active listings of new homes in Texas has nearly doubled year-over-year, registering 14,383 listings in December 2021.
“Building enough homes to close the inventory gap still may be the biggest challenge for builders in 2023,” Caballero said. Caballero sounded the housing inventory alarm in May 2021, in an opinion column for Inman News, noting a US shortfall of over 5.52 million homes.
Finally, Caballero noted statewide pending new home sales reported to the MLSs increased last month. In December, the 3-month moving average of pending new home sales statewide was 4,605 versus 4,461 in November. Two of Texas’s major new home markets – Dallas-Ft. Worth and Austin – reported an increase in pending new home sales last month, with San Antonio and Houston being exceptions. San Antonio reported flat pending new home sales in December of 596 versus 597 in November while Houston’s pending new home sales decreased in December to 1,522 from 1,538 in November.
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 December, set for Thursday, January 26, 2023 at 10:00 am Eastern.
The HomesUSA.com monthly report is based on closed sales recorded inside the MLSs by the 10th day of the following month. Sales reported late by agents 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 – New Homes in Texas (Exclusive Data)
The HomesUSA.com New Home Sales Index showed the 3-month moving average of Days on Market continues to increase statewide and in all four major new home markets in December. In Dallas-Ft. Worth, the DOM increased to 83.16 days from 68.59 days in November. Houston’s DOM was 76.09 days versus 68.43 days in November. In San Antonio, the DOM was 68.94 days versus 65.43 days in November. In Austin, the DOM increased to 52.24 days versus 40.27 days in November. (See Chart 1: Texas New Homes Days on Market)
Texas New Home Sales Data
Based on all available local MLS data, total new home sales in Texas were higher statewide and in all four major new home markets last month, according to the 3-month moving average. Dallas-Ft. Worth new home sales increased to 1,458 versus 1,241 in November. In Houston, December's total sales were 1,677 versus 1,548 in November. In San Antonio, new home sales in December rose to 580 versus 575 in November. In Austin, new home sales increased in December to 752 versus 740 in November. (See Chart 2: Texas New Home Sales)
Texas New Home Prices
The average price of new homes in Texas shows higher prices statewide, but lower prices in two of the four major new home markets last month. In Dallas-Ft. Worth, the 3-month moving average price for new homes was lower in December at $501,789 versus $502,466 in November. In Houston, the average new home price was also lower in December at $423,512 versus $427,038 in November. Austin's 3-month moving average price increased in December to $533,703 from $523,723 in November. In San Antonio, the average new home price also increased in December at $396,487 versus $388,183 in November. (See Chart 3: Texas New Home Prices)
Texas Sales-to-List Price Ratio
New home sales statewide and in Dallas-Ft. Worth, Houston, Austin, and San Antonio are continuing to move away from 100 percent of the asking price. Statewide, the 3-month moving average of the sales-to-list price ratio in December was 97.59 versus 98.17 percent in November. Dallas-Ft. Worth’s ratio was 98.05 versus 98.52 percent in November. In Houston, the ratio was 97.44 versus 97.80 percent in November. In Austin, the sales-to-price ratio in December was 96.79 versus 98.02 percent in November. San Antonio's ratio in December was 97.92 versus 98.48 percent in November. (See Chart 4: Texas Sales-to-List Price Ratio)
Texas Pending New Homes Sales Data
Based on local MLS data, pending new home sales increased statewide and in two of the four Texas major new home markets last month. Statewide MLS data shows pending sales in December were 4,605 versus 4,461 in November. Pending new home sales last month in Dallas-Ft. Worth were 1,773 versus 1,700 in November. In Austin, pending new home sales in December were 714 versus 626 in November. In Houston, pending new home sales in December decreased to 1,522 versus 1,538 in November. In San Antonio, pending sales last month were 596 versus 597 in November. (See Chart 5: Texas Pending New Home Sales)
Texas Active Listings for New Homes
MLS data shows the 3-month moving average for active listings statewide increased in December to 28,088 versus 27,146 in November. Last month, all four major Texas new home markets posted higher active listings. Dallas-Ft. Worth's active listings in December were 7,513 versus 7,253 in November. Last month's active listings in Houston were 11,545 versus 11,363 in November. December’s active listings in Austin were higher at 4,634 versus 4,348 in November. San Antonio reported active new home listings in December were 4,395 versus 4,182 in November. (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 the four largest Texas markets, including Dallas-Ft. Worth, Houston, Austin, and San Antonio. Created by Ben Caballero, founder and CEO of HomesUSA.com, it is the first Days on Market index to track Texas new home market and includes homes listed while under construction.
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 agent to exceed $1 billion in residential sales transactions in a single year, a feat first achieved in 2015 and repeated each year through 2018 when he achieved more than $2 billion. An award-winning innovator and technology pioneer, Ben 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 firstname.lastname@example.org.
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.
Image: Ben Caballero
Individual Chart images:
Chart 1: Texas New Homes Tracking – Days on Market – December 2022: https://homesusa.com/wp-content/uploads/2023/01/Chart-1-Texas-Days-on-Market.jpg
Chart 2: Texas New Home Sales Market – December 2022: https://homesusa.com/wp-content/uploads/2023/01/Chart-2-Texas-New-Home-Sales.jpg
Chart 3: Texas New Home Sales Prices Market – December 2022: https://homesusa.com/wp-content/uploads/2023/01/Chart-3-Texas-New-Home-Sales-Prices.jpg
Chart 4: Texas Sales-to-List-Price Ratio Market – December 2022: https://homesusa.com/wp-content/uploads/2023/01/Chart-4-Texas-Sales-to-List-Price-Ratio.jpg
Chart 5: Texas Pending New Home Sales Market – December 2022: https://homesusa.com/wp-content/uploads/2023/01/Chart-5-Texas-Pending-New-Home-Sales-Market.jpg
Chart 6: Texas Active Listings for New Homes Market – December 2022: https://homesusa.com/wp-content/uploads/2023/01/Chart-6-Texas-Active-Listings-for-New-Homes-Market.jpg
Chart A: Texas 12-Month Moving Averages Market – December 2022: https://homesusa.com/wp-content/uploads/2023/01/Chart-A-12MonthChart-DataOnly.jpg