HomesUSA.com reports another bump in inventory as market normalizes
Houston, TX – September 22, 2022 – Houston area new home sales and prices have hit their peak as increasing inventory causes home builders to list more homes for sale in the MLS, according to Ben Caballero, the nation’s top-ranked real estate agent and CEO of HomesUSA.com.
According to the newest HomesUSA.com New Home Sales report for last month, the 3-month moving average of new home sales for Houston fell in August to 1,442 versus 1,514 in July. Active listings in the local MLS – which measures the inventory of new homes – jumped to 9,937 in August, up from 8,911 in July – an increase of over 35% in the last 90 days.
“New home sales peaked in May, while their average sales price appears to be peaking now,” said Caballero. “While inventory continues to increase, its pace has slowed and the August supply is now five months, down from six months in July,” he added.
“Houston builders are resisting downward pressure on prices by increasing Realtor bonuses and commissions,” Caballero noted. “The wave of cancelations was related to higher interest rates and does not appear to be a factor for now. However, this could change if interest rates increase again,” he said.
The HomesUSA.com New Home Sales Index shows the Houston new home sales pace increased as the 3-month moving average for Days on Market was 59.41 days in August versus 60.05 days in July.
The HomesUSA.com report uses data from the REALTOR Associations of Houston, Austin, North Texas, and San Antonio.
The Houston average new home price increased last month. Overall, the 3-month moving average of a new home last month was $426,115 versus $424,398 in July, a new record high.
The 3-month moving average of new home prices also was higher in Austin: $555,927 versus July’s $546,978. Dallas-Ft. Worth’s average new home price was slightly lower at $512,934 versus $513,727 in July, and San Antonio also posted a slightly lower average price of $406,099 versus July’s $407,028.
Houston pending new home sales increased last month In August, their 3-month average was 1,566 versus 1,607 in July. Three of the four major new home markets in Texas – Dallas-Ft. Worth, Austin, and San Antonio – reported pending sales increased last month. Only Houston reported a slight drop in pending sales in August.
The HomesUSA.com Texas New Home Sales Report and HomesUSA.com NewHome Sales Index are being shared in advance of the Commerce Department’s release of its nationwide New Residential Sales Report for July, set for Tuesday, September 27 at 10:00 am Eastern.
The HomesUSA.com monthly report includes 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 tracks 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 declined statewide and in two of the four major new home markets in August. Houston’s DOM was 59.41 days versus 60.05 days in July. In San Antonio, the DOM was 55.31 days versus 56.46 days in July. In Austin, the DOM increased to 27.90 days versus 25.76 days in July. Dallas-Ft. Worth’s DOM also increased to 50.54 days from 50.32 days in July. (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 Texas were lower statewideand in two of the four major new home markets last month, according to the 3-month moving average. In Houston, August’s total sales were 1,442 versus 1,514 in July. Dallas-Ft. Worth new home sales also decreased to 1,149 versus 1,180 in July. In San Antonio, new home sales increased to 470 from 454 in July. In Austin, August sales totaled 605 versus 576 in July. (See Chart 2: Texas New Home Sales)
Texas New Home Prices
The average price of new homes in Texas shows higher prices statewide and in two of the four major new home markets last month. Houston's average new home price was higher in August at $426,115 versus $424,398 in July. Austin's 3-month moving average price also rose in August to $555,927 from $546,978 in July. Dallas-Ft. Worth reported its 3-month moving average price for new homes was lower in August at $512,934 versus $513,727 in July. In San Antonio, the average new home price also decreased in August at $406,099 versus $407,028 in July. (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 still hover near 100 percent of the asking price and in two markets, exceeded it. Statewide, the 3-month moving average of the sales-to-list price ratio in August was 99.615 versus 99.899 percent in July. In Houston, the ratio was 98.759 versus 99.018 in July. Dallas-Ft. Worth’s ratio was 100.230 versus 100.605 percent in July. In Austin, the sales-to-price ratio in August was 100.489 versus 100.774 percent in July. San Antonio's ratio in August was 99.608 versus 99.888 in July. (See Chart 4: Texas Sales-to-List Price Ratio)
Texas Pending New Homes Sales Data
Based on local MLS data, pending new home sales rose statewide and in three of the four Texas major new home markets last month. Statewide MLS data shows pending sales in August were 4,308 versus 4,240 in July. Houston was the exception, as pending sales in August were 1,566 versus 1,607 in July. Pending new home sales last month in Dallas-Ft. Worth were 1,619 versus 1,569 in July. In Austin, pending sales in August were 646 versus 617 in July. In San Antonio, pending sales last month were 477 versus 446 in July. (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 increased in August to 22,073 versus 18,950 in July. Last month, all four major Texas new home markets posted higher active listings. Last month's active listings in Houston were 9,937 versus 8,911 in July. Dallas-Ft. Worth's active listings in August were 5,581 versus 4,595 in July. August’s active listings in Austin were higher at 3,408 versus 2,797 in July. San Antonio reported active new home listings in August were 3,147 versus 2,647 in July. (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 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.
