HomesUSA.com report shows flat sales, lower prices and growing inventory
DALLAS, Aug. 22, 2024 (GLOBE NEWSWIRE) — While Texas new home sales were flat last month in its four biggest markets, homes sold faster as Days on Market continued to trend downward, according to the newest monthly Texas New Home Sales Report released today by HomesUSA.com and its founder and CEO, Ben Caballero, the nation’s top-ranked real estate agent.
The HomesUSA.com New Home Sales Report uses Multiple Listing Service data – the most comprehensive, current, and accurate information – from the Realtor Associations of North Texas, Houston, Austin, and San Antonio.
Year-over-year comparisons of home sales, prices, and inventory are painting a worrisome picture, according to Caballero. “While builders are seeing homes are selling faster, year-over-year average new home prices are declining and inventory is rising,” explained Caballero, “and unless we see a continued improvement in mortgage rates, it’s going to continue to be a tough market for builders as they struggle to overcome market challenges.”
According to July MLS data from Dallas-Ft. Worth, Houston, Austin, and San Antonio, the 3-month average of Days on Market was 98.27 days, its lowest level in the past year, and down from 112.05 days in April – or more than 12% fewer days.
New home sales in Texas’ largest markets posted a 3-month average in July of 5,977 versus 6,043 total sales in June, with Dallas-Ft. Worth, Houston, Austin, and San Antonio each posting relatively flat sales in July.
The good news for home buyers: the 3-month average new home price in the combined top four markets was lower in July at $432,801 versus $436,489 in June, and down more than 6% from $462,363 in July last year. Local 3-month average home prices were lower month-over-month in Austin ($494,302 versus $504,155), Houston ($404,253 versus $409,042), and San Antonio ($343,616 versus $349,859). Only Dallas-Ft. Worth posted a higher average sale price last month – $487,347 versus $482,048 in June.
Caballero also points out that new home prices are lower year-over-year in each of these four markets: 8% lower in Austin, 5.4% lower in Houston, 9.4% lower in San Antonio and 2.4% lower in Dallas-Ft. Worth.
Inventory continues to rise as the 3-month average of active listings in the four largest Texas new home markets in July was 31,358 versus 30,617 in June. Also, year-over-year active listings are up almost 18% from 26,662 in July 2023.
Pending sales, an indication of future sales, were 4.2% lower in July. “Builders are focused on balancing production to accommodate reduced demand being caused by interest rates,” Caballero said. The average 3-month pending sales for the four largest Texas new home markets in July totaled 6,623 versus 6,916 in June.
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 July, set for Friday, August 23, 2024, at 10:00 am Eastern time.
The HomesUSA.com monthly report covers closed sales recorded in MLSs by the 10th day of the following month. Sales reported by agents after the 10th of the month 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 Improve Significantly – New Homes in Texas (Exclusive Data)
The HomesUSA.com New Home Sales Index showed the 3-month moving average of Days on Market (DOM) in July improved significantly in Texas’ four major new home markets. In Dallas-Ft. Worth, the DOM decreased to 118.34 days versus 123.16 days in June. Houston’s DOM was 91.21 days versus 94.68 days in June. In Austin, the DOM dropped to 87.38 days versus 90.81 days in June. In San Antonio, the DOM was 86.16 days versus 92.58 days in June. New homes have significantly higher Days on Market or DOM than existing homes because most new homes are listed while under construction. (See Chart 1: Texas New Homes Days on Market)
Texas New Home Sales Flatten
Based on all local MLS data, the most reliable and current source of all home sales activity, total new home sales flattened in three of the four largest new home markets in Texas last month. The July 3-month moving average of new home sales in Dallas-Ft. Worth was 1,902 versus 1,954 in June. In Houston, total new home sales were 2,053 versus 2,093 in June. Austin’s new home sales last month were 900 versus 917 in June. San Antonio was the exception, as new home sales in July were slightly higher at 1,121 versus 1,079 in June. (See Chart 2: Texas New Home Sales)
Texas New Home Prices Steadily Decrease
The average prices of new homes continue to decrease in three of the four major new home markets in Texas last month. Dallas-Ft. Worth was the anomaly, as the 3-month moving average price for new homes in July was higher at $487,347 versus $482,048 in June. In Houston, the average new home price in July was $404,253 versus $409,042 in June. In Austin, the 3-month moving average price decreased in July to $494,302 versus $504,155 in June. San Antonio’s average new home price was also lower in July at $343,616 versus $349,859 in June. (See Chart 3: Texas New Home Prices)
Texas Sales-to-List Price Ratio Remains Stable
Cumulative new home sales remain slightly lower than 100 percent of the asking price. The combined 3-month moving average of the sales-to-list price ratio in Texas’ four largest markets for July was 97.60 versus 97.97 percent a year ago and 97.66 percent in June this year. Dallas-Ft. Worth’s ratio in July was 97.88 versus 98.17 percent last July and 97.97 percent in June this year. In Houston, the ratio in July was 96.92 versus 98.30 percent last July and 96.99 percent in June this year. In Austin, the sales-to-price ratio in July was 97.71 versus 97.53 percent last July and 97.91 percent in June this year. San Antonio’s ratio in July was 98.29 versus 97.34 percent a year ago and 98.21 percent in June this year. (See Chart 4: Texas Sales-to-List Price Ratio)
Texas Pending New Homes Sales Decline
Based on local MLS data, the average 3-month pending new home sales continue to decline in the four largest Texas new home markets. The combined four-market average in July totaled 6,623 versus 6,916 in June. In Dallas-Ft. Worth, pending new home sales last month were 2,335 versus 2,382 in June. In Houston, pending new home sales in July were 1,947 versus 2,109 in June. In Austin, pending new home sales in July were 1,272 versus 1,333 in June. In San Antonio, pending new home sales were also lower last month at 1,069 versus 1,092 in June. (See Chart 5: Texas Pending New Home Sales)
Texas Active Listings for New Homes Increase
Active new home listings continue to increase in all four of the largest Texas new home markets in July. The July 3-month average active listings inventory in Texas’ four major new home markets was 31,358 new homes versus 30,617 in June. Dallas-Ft. Worth’s active listings in July increased to 7,348 versus 7,063 in June. Active listings in Houston last month also increased to 12,603 versus 12,566 in June. In Austin, active listings in July were higher at 5,950 versus 5,909 in June. In San Antonio, active listings last month were 5,456 versus 5,079 in June. (See Chart 6: Texas Active Listings)
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, it is the first Days on Market index to track the Texas new home market and includes homes listed while under construction. (See Chart A: 12-Month Moving Averages)
*Note: Texas data denotes a combination of its four largest new home markets – Houston, Dallas-Ft. Worth, Austin, and San Antonio – which comprise 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 Records 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 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). Ben, an award-winning innovator and technology pioneer, works with more than 60 home builders in Dallas-Fort Worth, Houston, Austin, and San Antonio. His podcast series is available widely, including iTunes, Spotify and YouTube. Learn more at HomesUSA.com | Twitter: @bcaballero – @HomesUSA | Facebook: /HomesUSAdotcom.
Note for journalists: You may contact Ben Caballero directly by email at ben@homesusa.com.
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)
https://homesusa.com/wp-content/uploads/2023/04/Ben_Caballero_1-scaled.jpg
Individual Chart images:
Chart 1: Texas New Homes Tracking – Days on Market – July 2024: https://homesusa.com/wp-content/uploads/2024/08/Chart-1-Texas-New-Homes-Tracking-Days-on-Market.jpg
Chart 2: Texas New Home Sales Market – July 2024: https://homesusa.com/wp-content/uploads/2024/08/Chart-2-Texas-New-Home-Sales-Market.jpg
Chart 3: Texas New Home Sales Prices Market – July 2024: https://homesusa.com/wp-content/uploads/2024/08/Chart-3-Texas-New-Home-Sales-Prices-Market.jpg
Chart 4: Texas Sales-to-List-Price Ratio Market – July 2024: https://homesusa.com/wp-content/uploads/2024/08/Chart-4-Texas-Sales-to-List-Price-Ratio-Market.jpg
Chart 5: Texas Pending New Home Sales Market – July 2024: https://homesusa.com/wp-content/uploads/2024/08/Chart-5-Texas-Pending-New-Home-Sales-Market.jpg
Chart 6: Texas Active Listings for New Home Market – July 2024: https://homesusa.com/wp-content/uploads/2024/08/Chart-6-Texas-Active-Listings-for-New-Homes-Market.jpg
Chart A: Texas 12-Month Moving Averages Market – July 2024: https://homesusa.com/wp-content/uploads/2024/08/Chart-A-12MonthChart-DataOnly.jpg
