New Data Shows Shifts in Texas Real Estate Markets
TEXAS REALTORS®
releases Q2 Texas Quarterly Housing Report
July 19, 2023 — Austin
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The median price of homes sold in Texas in the second quarter decreased 3.1% compared to one year ago, according to the 2023-Q2 Quarterly Housing report released today by Texas REALTORS®. During the same time frame, the number of closed sales also decreased, while the number of homes available for sale increased.
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“There’s a saying that all real estate is local, and the second quarter this year showed how true that is,” said Marcus Phipps, 2023 Chairman of the Texas REALTORS®. “While the statewide median price eased down, median prices are actually up in about half of Texas markets. Despite that variation, the average number of days that homes spent on the market was up in every metro area, and the number of homes available increased in nearly every metro as well.”
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The median sales price of Texas homes for Q2 2023 decreased to $345,000 from $357,388 in the same period last year. Texas homes spent an average of 87 days on the market before closing in the second quarter, which is 20 days longer than a year ago.
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The price distribution of properties sold in the second quarter shows a slight decrease in high-end homes as a percentage of total sales. Homes that sold for at least $750,000 made up nearly 10% of homes sold in the second quarter last year, while that price range accounted for 8.7% of sales in Q2 this year. Half of properties sold in the second quarter this year were in the $200,000 to $399,999 price range, up from 45.8% of all sales a year ago.
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Months of inventory—or how long it would take to sell all homes on the market at the current pace of sales—increased from 2 to 3.2 months from the same period last year. While the increased inventory is a welcome trend for buyers, it still indicates a tight supply of homes. Researchers at the Texas Real Estate Research Center say that a market balanced between supply and demand is in the range of 6 to 6.5 months of inventory.
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“General trends provide an indication of the overall market, but buyers and sellers will want to work with a REALTOR® who really knows the specific area,” said Chairman Phipps. “Not only can small changes in location make a difference, but each property is different. A REALTOR® has the knowledge to help buyers and sellers sort through all the variables to achieve the best results.”
Texas Legislature Reaches Historic Deal on Property Tax Reform
Texas REALTORS®
The deal is the largest-ever legislative effort to rein in skyrocketing property taxes and keep homeownership attainable and sustainable for Texans.
July 10, 2023 - Austin
The Texas Legislature is poised to approve more than $18 billion to rein in Texas property taxes. The compromise reached between the House and Senate will include a $100,000 homestead exemption, $12 billion to buy down local school tax rates, and a pilot program to impact appraised values, targeted toward small businesses.
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“Texas REALTORS® appreciates that the compromise includes an increase in residence homestead exemptions to $100,000 as prioritized by the Lt. Governor and Senate during the 88th regular session, which will help all 5.7 million Texas homeowners. We are also pleased to see thoughtful consideration given to the House’s concerns about the property tax burden on non-homestead properties, such as rental properties and small businesses,” said Texas REALTORS® 2023 Chair Marcus Phipps.
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Texans’ property taxes are among the highest in the country. Today’s landmark deal comes amid persistent affordability challenges around the state over the past several years. “We thank all the lawmakers who worked to find a solution that helps all Texans achieve – and maintain – the dream of property ownership,” Phipps said.
Additionally, by increasing the minimum threshold for franchise tax filers from $1.25 million to $2.5 million, this compromise plan will save money for 67,000 small businesses around the state.