HomesUSA.com Report shows Days on Market normalizing as seasonality pushes pending sales and prices higher
DALLAS, May 18, 2023 — The new home market across Texas remains robust as sales climbed again last month and the market continues to “normalize,” according to the monthly HomesUSA.com New Home Sales Report released today by its author, Ben Caballero, the nation’s top-ranked real estate agent and HomesUSA.com CEO.
The HomesUSA.com New Home Sales Report uses Multiple Listing Service data – the most complete, current, and accurate information available – from the Realtor Associations of North Texas, Houston, Austin, and San Antonio.
The 3-month moving average of new home sales in Texas for April was 5,537 versus 4,903 new homes sold in March. It was the second month is a row for the highest reported MLS total monthly sales in more than two years. Caballero explained that the increased supply of new homes has created a more balanced market which he notes is good for the builders and consumers.
“The Texas housing market continues to be robust and as it normalizes,” said Caballero, pointing to the new Days on Market numbers that continue to increase “from the abnormally low numbers last year.”
The HomesUSA.com New Home Sales Index shows the 3-month moving average for Days on Market for the four largest markets in Texas exceeded 100 days in April at 106.10, for the first time since September 2020. In April of 2022, Days on Market in the four largest markets in Texas averaged 58.47 days.
“Most new Homes are listed during construction, resulting in a higher average Days on Market than existing home sales,” Caballero said. “The DOM stops when the status changes to ‘sales pending’ but the average difference for new homes is about 45 to 60 days higher. The current new home DOM is healthy in my opinion.”
Caballero also notes that in Texas’ four top markets, the 3-month moving average new home prices rebounded last month was $451,868 versus $449,603 in March. Houston new home sales prices in April averaged $413,925 versus $403,897 in March. In Austin, the April average was $519,017 versus $510,336 in March, and San Antonio was $377,759 versus $375,551 in March. In Dallas-Ft. Worth, the 3-month moving average new home sales prices softened modestly in April at $487,799 versus $494,241 in March.
Local MLS data also indicates the market is normalizing as new home listings were somewhat lower last month. The 3-month moving average of active listings in Texas’ four largest markets for April was 26,593 versus 27,426 in March.
Pending new home sales were higher once again last month, climbing to their highest level in more than a year. The 3-month moving average of pending new home sales in April was 6,952 versus 6,798 in March.
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 April, set for Tuesday, May 23, 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 in all four major new home markets in April. In Dallas-Ft. Worth, the DOM increased to 117.51 days from 112.12 days in March. Houston’s DOM was 106.77 days versus 99.93 days in March. In Austin, the DOM increased to 88.44 days versus 79.36 days in March. In San Antonio, the DOM was 92.02 days versus 85.79 days in March. (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 all four major new home markets were higher last month, according to the 3-month moving average. In Dallas-Ft. Worth, new home sales increased to 2,078 versus 1,825 in March. In Houston, April’s total sales were 1,888 versus 1,702 in March. In Austin, new home sales increased in April to 803 versus 732 in March. In San Antonio, new home sales in April rose to 767 versus 644 in March. (See Chart 2: Texas New Home Sales)
Texas New Home Prices
The average price of new homes in three of the four major new home markets were higher last month. In Houston, the average new home price was higher in April at $413,925 versus $403,897 in March. Austin’s 3-month moving average price increased in April to $519,017 from $510,336 in March. In San Antonio, the average new home price also increased in April to $377,759 versus $375,551 in March. Dallas-Ft. Worth was the anomaly, as the 3-month moving average price for new homes decreased in April at $487,799 versus $494,241 in March. (See Chart 3: Texas New Home Prices)
Texas Sales-to-List Price Ratio
Cumulative new home sales, appear to be stabilizing near 100 percent of the asking price. The 3-month moving average of the sales-to-list price ratio for April was 97.48 versus 97.26 percent in March. Dallas-Ft. Worth’s ratio was 97.73 versus 97.51 percent in March. In Houston, the ratio was 97.41 versus 97.24 percent in March. In Austin, the sales-to-price ratio in April was 96.95 versus 96.57 percent in March. San Antonio’s ratio in April was 97.55 versus 97.42 percent in March. (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 in in all four Texas major markets last month. Data shows pending sales in April were 6,952 versus 6,798 in March. Pending new home sales last month in Dallas-Ft. Worth were 2,713 versus 2,663 in March. In Houston, pending new home sales in April increased to 2,117 versus 2,076 in March. In Austin, pending new home sales in April were 1,174 versus 1,147 in March. In San Antonio, pending sales last month were 948 versus 912 in March. (See Chart 5: Texas Pending New Home Sales)
Texas Active Listings for New Homes
Data from the four largest Texas MLSs also shows the 3-month moving average for active listings decreased in April to 26,593 versus 27,426 in March. Last month, two of markets posted lower active listings. Dallas-Ft. Worth’s active listings in April were 5,892 versus 6,479 in March. Last month’s active listings in Houston were 11,123 versus 11,375 in March. In Austin, active listings in April remained unchanged from March at 5,271. San Antonio’s active listings were higher in April at 4,307 versus 4,302 in March. (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 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.
*Note: Texas data denotes a combination of its four largest new home markets – Houston, Dallas-Ft. Worth, Austin and San Antonio, which comprises the vast majority of new home sales and MLS data statewide.
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 RealTrends 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 individual real estate agent to exceed $3 billion in residential sales transactions in a single year (2022); the first agent to exceed $2 billion (2018, 2019, 2020); and the first agent to exceed $1 billion (2015, 2016, 2017). 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 ben@as-husa-cus-wp-prod.azurewebsites.net.
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.
Media Contact:
Kevin Hawkins
(206) 866-1220
kevin@wavgroup.com
Image: Ben Caballero (2023)
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Individual Chart images:
Chart 1: Texas New Homes Tracking – Days on Market – April 2023: /wp-content/uploads/2023/05/Chart-1-Texas-New-Homes-Tracking-Days-on-Market.jpg
Chart 2: Texas New Home Sales Market – April 2023: /wp-content/uploads/2023/05/Chart-2-Texas-New-Home-Sales-Market.jpg
Chart 3: Texas New Home Sales Prices Market – April 2023: /wp-content/uploads/2023/05/Chart-3-Texas-New-Home-Sales-Prices-Market.jpg
Chart 4: Texas Sales-to-List-Price Ratio Market – April 2023: /wp-content/uploads/2023/05/Chart-4-Texas-Sales-to-List-Price-Ratio-Market.jpg
Chart 5: Texas Pending New Home Sales Market – April 2023: /wp-content/uploads/2023/05/Chart-5-Texas-Pending-New-Home-Sales-Market.jpg
Chart 6: Texas Active Listings for New Home Market – April 2023: /wp-content/uploads/2023/05/Chart-6-Texas-Active-Listings-for-New-Homes-Market.jpg
Chart A: Texas 12-Month Moving Averages Market – April 2023: /wp-content/uploads/2023/05/Chart-A-12MonthChart-DataOnly.jpg
