HomesUSA.com Report shows supply and demand becoming “more balanced”
DALLAS, April 19, 2023 — The new home market across Texas is proving to be “tenacious” as sales climbed last month to a new recent high with the market becoming “more balanced,” 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 Services 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 March was 4,903 versus 4,585 new homes sold in February. It was the highest reported MLS total monthly sales in more than two years. Caballero explained that much of this new home sales spike in the MLS resulted from builders listing homes previously sold from a waiting list when inventory was tight. When interest rates suddenly increased, many buyers could no longer qualify, canceling their purchases and causing inventory to jump. Builders then listed those previously sold homes in the local MLS, which is reflected in recent months’ data.
The Days on Market for new homes also increased significantly in March. The HomesUSA.com New Home Sales Index shows the 3-month moving average for Days on Market for the four largest markets in Texas hit 99.54 days in March versus 92.15 days in February. Last March, Days on Market averaged 59.02 days in the four largest markets in Texas.
Caballero says the dramatic change is because “supply and demand is becoming more balanced.”
“Texas new home sales are tenacious,” said Caballero, pointing to both cyclical demand and economic growth statewide as contributing to market tenacity. “Despite the gyrations in mortgage rates, the market is finding balance in Houston, Dallas-Ft. Worth, Austin and San Antonio,” Caballero added.
Caballero also notes that the 3-month moving average for Texas new home prices softened, as last month, Texas new home sales prices cumulatively were $449,603 versus $453,104 in February. Locally, sales prices were relatively flat in March in Houston ($403,897 versus $405,019) and Dallas ($494,241 versus $493,722) and declined in Austin ($510,336 versus $518,407) and San Antonio ($375,551 versus $387,724).
“To avoid big price cuts, builders are offering buyer incentives and agent bonuses that are expected to continue,” Caballero said.
Local data from MLSs also indicates the market is becoming more balanced, as active listings of new homes were slightly lower last month. The 3-month average of active listings in Texas’ four largest markets for March was 27,426 versus 28,127 in February.
Pending new home sales reported to the four major MLSs in Texas jumped last month once again to their highest level in more than 12 months. The 3-month moving average of pending new home sales in March was 6,798 versus 5,990 in February.
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 March, set for Tuesday, April 25, 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 March. In Dallas-Ft. Worth, the DOM increased to 112.12 days from 104.43 days in February. Houston’s DOM was 99.93 days versus 93.33 days in February. In San Antonio, the DOM was 85.79 days versus 79.32 days in February. In Austin, the DOM increased to 79.36 days versus 71.14 days in February. (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 across Texas and 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 1,825 versus 1,670 in February. In Houston, March’s total sales were 1,702 versus 1,618 in February. In San Antonio, new home sales in March rose to 644 versus 571 in February. In Austin, new home sales increased in March to 732 versus 726 in February. (See Chart 2: Texas New Home Sales)
Texas New Home Prices
The average price of new homes in Texas and in two of the four major new home markets were lower last month. In Dallas-Ft. Worth, the 3-month moving average price for new homes remained flat in March at $494,241 versus $493,722 in February. In Houston, the average new home price was also flat in March at $403,897 versus $405,019 in February. Austin’s 3-month moving average price decreased in March to $510,336 from $518,407 in February. In San Antonio, the average new home price also decreased in March to $375,551 versus $387,724 in February. (See Chart 3: Texas New Home Prices)
Texas Sales-to-List Price Ratio
Cumulative new home sales in Texas, as well as in Dallas-Ft. Worth, Houston, Austin, and San Antonio, appear to be stabilizing near 100 percent of the asking price. In Texas, the 3-month moving average of the sales-to-list price ratio in March was 97.26 versus 97.14 percent in February. Dallas-Ft. Worth’s ratio was 97.51 versus 97.48 percent in February. In Houston, the ratio was 97.24 versus 97.08 percent in February. In Austin, the sales-to-price ratio in March was 96.57 versus 96.30 percent in February. San Antonio’s ratio in March was 97.42 versus 97.41 percent in February. (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 Texas and in all four of its major new home markets last month. Data from the four largest MLSs in Texas shows pending sales in March were 6,798 versus 5,990 in February. Pending new home sales last month in Dallas-Ft. Worth were 2,663 versus 2,336 in February. In Austin, pending new home sales in March were 1,147 versus 1,035 in February. In Houston, pending new home sales in March increased to 2,076 versus 1,841 in February. In San Antonio, pending sales last month were 912 versus 778 in February. (See Chart 5: Texas Pending New Home Sales)
Texas Active Listings for New Homes
Data from the four largest MLS in Texas also shows the 3-month moving average for active listings decreased in March to 27,426 versus 28,127 in February. Last month, three of the four major Texas new home markets posted lower active listings. Dallas-Ft. Worth’s active listings in March were 6,479 versus 7,056 in February. Last month’s active listings in Houston were 11,375 versus 11,514 in February. San Antonio’s active listings were also lower in March at 4,302 versus 4,417 in February. Austin was the exception, as active listings in March were higher at 5,271 versus 5,140 in February. (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.
*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 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 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 – March 2023: /wp-content/uploads/2023/04/Chart-1-Texas-New-Homes-Tracking-Days-on-Market.jpg
Chart 2: Texas New Home Sales Market – March 2023: /wp-content/uploads/2023/04/Chart-2-Texas-New-Home-Sales-Market.jpg
Chart 3: Texas New Home Sales Prices Market – March 2023: /wp-content/uploads/2023/04/Chart-3-Texas-New-Home-Sales-Prices-Market.jpg
Chart 4: Texas Sales-to-List-Price Ratio Market – March 2023: /wp-content/uploads/2023/04/Chart-4-Texas-Sales-to-List-Price-Ratio-Market.jpg
Chart 5: Texas Pending New Home Sales Market – March 2023: /wp-content/uploads/2023/04/Chart-5-Texas-Pending-New-Home-Sales-Market.jpg
Chart 6: Texas Active Listings for New Home Market – March 2023: /wp-content/uploads/2023/04/Chart-6-Texas-Active-Listings-for-New-Homes-Market.jpg
Chart A: Texas 12-Month Moving Averages Market – March 2023: /wp-content/uploads/2023/04/Chart-A-12MonthChart-DataOnly.jpg
