Houston new homes market shows signs of returning to normal

Written by Posted On Monday, 22 November 2021 08:56

HomesUSA.com reports increased inventory and higher new home prices

Houston, TX – November 22, 2021 – The Houston new home market appears to be trending towards a more balanced state as new home inventory jumped locally last month, according to a new monthly report from HomesUSA.com. Houston new home listings increased to 7,756 in October, up from 7,234 in September, according to the 3-month moving average.

Dallas-based HomesUSA.com also reports the record pace of Houston new home sales showed signs of stabilizing last month. The average Days on Market locally for a new home was 67 days, tying the record low for the HomesUSA.com New Home Sales Index as it was unchanged from September. However, new home prices continued to push higher in October to $404,453 from $402,578 in September per the 3-month moving average of new home sale prices.Chart 1 Texas Days on Market

The HomesUSA.com October 2021 new homes report, for Houston, Dallas-Ft. Worth, Austin, and San Antonio, is based on data from the Houston Association of REALTORS, North Texas Real Estate Information Systems, Austin Board of REALTORS Multiple Listing Services, and the San Antonio Board of REALTORS.

“Houston’s new home market is becoming more balanced,” said Ben Caballero, owner of HomesUSA.com and world record holder for most home sales. “And the best news is the increase in inventory. Sales activity also remains robust as Houston continues to be a leader in Texas for new home sales,” Caballero explained.

Caballero also noted that providing the most current and comprehensive information about Houston's new home sales remains an ongoing challenge. “New homes are selling so fast that we estimate as much as half, or more, of all new homes are not entered into the local MLS (Multiple Listing Service). However, the MLS data remains the most accurate and timely new home sales data available. No other source captures new homes sales activity as quickly and accurately,” Caballero said.

Houston new home sales were stable in October, as the 3-month moving average was 1,314 homes sold versus 1,310 sold in September. The 3-month moving average of pending new home sales for Houston in October was down noticeably with 1,320 sales versus 1,650 in September.   

Caballero is sharing the HomesUSA.com New Homes Report in advance of the release by the Commerce Department of its nationwide New Residential Sales Report for October 2021, set for Tuesday, November 23 at 10:00 am Eastern.

Caballero noted the monthly HomesUSA.com report includes both 3-month and 12-month moving averages for all essential market data, including Days on Market, sales volume, sales prices, a sales-to-list price ratio, pending sales, and active listings. 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 fell in two of the four Texas major new home markets. Houston’s DOM was 66.97 days in October versus 67.31 days in September. In San Antonio, the DOM was 47.32 days in October versus 48.97 days in September. The DOM in Austin was slightly higher at 18.20 days last month versus 17.29 days in September. The DOM for Dallas-Ft. Worth also slightly increased to 52.19 days in October versus 52 days in September. (See Chart 1: Texas New Homes Days on Market)

Texas New Home Sales Data

Total new home sales, solely based on MLS data, was marginally lower statewide in Texas with mixed results in the four major new home markets last month, according to the 3-month moving average. Houston sales were 1,314 in October versus 1,310 in September. In Dallas-Ft. Worth, October sales were 951 versus 943 in September. San Antonio posted October sales of 405 versus 458 in September. In Austin, October sales totaled 391 versus 392 in September. (See Chart 2: Texas New Home Sales)

Texas New Home Prices

Low inventory of new homes helped drive up the average price of new homes in Texas for the 12th straight month. In Houston, the average new home price was $404,453 in October versus $402,578 in September. Dallas-Ft. Worth reported its 3-month moving average price for new homes was $436,924 in October versus $433,882 in September. Austin's 3-month moving average price – the highest among the top four markets – was $504,619 in October versus $480,157 in September. Also, the San Antonio average new home price in October was $345,388 versus $332,362 in September. (See Chart 3: Texas New Home Prices)

Texas Sales-to-List Price Ratio

New home sales statewide and in Houston, Dallas-Ft. Worth, Austin, and San Antonio remained at nearly 100 percent of the asking price. Statewide, the 3-month moving average of the sales-to-list price ratio in October was 99.417 percent versus 99.430 percent in September. In Houston, it was 98.971 percent in October versus 98.990 percent in September. In Dallas-Ft. Worth, it was 99.971 percent in October versus 99.954 percent in September. San Antonio's ratio was 99.052 percent last month versus 99.198 percent in September. In Austin, the sales-to-price ratio was 99.905 percent in October versus 99.868 percent in September. (See Chart 4: Texas Sales-to-List Price Ratio)

Texas Pending New Homes Sales Data

Based solely on MLS data, pending new home sales totals were lower statewide and in each of the four major new home markets in Texas. Statewide MLS data shows pending sales in October were 3,172 versus 3,932 in September. Houston’s October pending sales were 1,320 versus 1,650 in September. Dallas-Ft. Worth pending sales in October were 1,114 versus 1,343 in September. Austin's pending sales in October were 337 versus 409 in September. In San Antonio, pending sales last month were 402 versus 530 in September. (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 jumped significantly in October, with 14,260 versus 13,301 in September. All four major Texas new home markets – Houston, Dallas-Ft. Worth, Austin, and San Antonio – posted higher active listings last month. In Houston, last month’s active listings were 7,756 versus 7,234 in September. Dallas-Ft. Worth active listings in October were 2,654 versus 2,575 in September. Austin’s active listings were 1,842 in October versus 1,603 in September. San Antonio reported active new home listings last month were 2,008 versus 1,889 in September. (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's 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 the world record holder for "Most annual home sale transactions through MLS by an individual sell-side real estate agent." 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. An infographic illustrating Ben’s sales production is here. Learn more at HomesUSA.com |Twitter: @bcaballero - @HomesUSA | Facebook: /HomesUSAdotcom.

 

 

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Kevin Hawkins

Experienced Proptech and real estate public relations pro, Kevin is a  member of the Forbes Real Estate Council and has been named as one of the real estate industry’s most influential leaders for by Inman News. He is an award-winning writer and expert storyteller, and is the only non-journalist to have won two top writing awards from the National Association of Real Estate Editors.

 

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