HomesUSA.com reports new home inventory is up as Days on Market increase
Houston, TX – January 24, 2023 – Houston home builders saw new home sales jump last month. Still, inventory continues to climb, setting a new record for 2022, and it’s taking longer to sell a home, according to a new HomesUSA.com New Home Sales Report released today by 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 Houston, Austin, North Texas, and San Antonio.
Caballero notes that the 3-month moving average of Houston’s new home sales increased in December to 1,677 versus 1,548 in November. However, the HomesUSA.com New Home Sales Index shows the pace of new home sales also slowed for the fourth straight month. The Houston 3-month moving average for Days on Market in December increased by more than a week to 76.09 days versus 68.43 days in November, and up from an annual low of 59.41 days in August.
“Overall, Houston area builders defied market expectations with higher sales in December – rarely a strong month for new home sales,” said Caballero. “While builders may be struggling on several fronts as home buyers face higher interest rates, local builders are showing remarkable resilience. In terms of total new home sales, Houston – and Texas overall – continues to buck the national trend,” he added.
According to the report, Houston home prices dropped last month. The 3-month moving average of new home sales prices in Houstion was $423,512 versus $427,038 in November.
Houston builders are facing mounting pressure as building inventory continues to rise. According to local MLS data, the 3-month average of active listings in Houston for December was 11,545 versus 11,363 in November. The number of active listings of new homes in Texas overall has nearly doubled year-over-year to a record in 2022 of 28,088 versus 14,383 in December 2021.
“Building enough homes to help close the inventory gap still may be the biggest challenge for Houston builders in 2023,” Caballero said. Caballero sounded the housing inventory alarm in May 2021, in an opinion column for Inman News, noting a US shortfall of over 5.52 million homes.
Finally, Caballero noted Houston pending new home sales reported by the MLS were flat last month. In December, the 3-month moving average of pending new home sales in Houston was 1,522 versus 1,538 in November.
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 December, set for Thursday, January 26, 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 statewide and in all four major new home markets in December. Houston’s DOM was 76.09 days versus 68.43 days in November. In San Antonio, the DOM was 68.94 days versus 65.43 days in November. In Austin, the DOM increased to 52.24 days versus 40.27 days in November. In Dallas-Ft. Worth, the DOM increased to 83.16 days from 68.59 days in November. (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 higher statewide and in all four major new home markets last month, according to the 3-month moving average. In Houston, December’s total sales were 1,677 versus 1,548 in November. Dallas-Ft. Worth new home sales also increased to 1,458 versus 1,241 in November. In San Antonio, new home sales in December rose to 580 versus 575 in November. In Austin, new home sales increased in December to 752 versus 740 in November. (See Chart 2: Texas New Home Sales)
Texas New Home Prices
The average price of new homes in Texas shows higher prices statewide, but lower prices in two of the four major new home markets last month. In Houston, the average new home price was lower in December at $423,512 versus $427,038 in November. In Dallas-Ft. Worth, the 3-month moving average price for new homes was also lower in December at $501,789 versus $502,466 in November. Austin's 3-month moving average price increased in December to $533,703 from $523,723 in November. In San Antonio, the average new home price also increased in December at $396,487 versus $388,183 in November. (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 are continuing to move away from 100 percent of the asking price. Statewide, the 3-month moving average of the sales-to-list price ratio in December was 97.59 versus 98.17 percent in November. In Houston, the ratio was 97.44 versus 97.80 percent in November. Dallas-Ft. Worth’s ratio was 98.05 versus 98.52 percent in November. In Austin, the sales-to-price ratio in December was 96.79 versus 98.02 percent in November. San Antonio's ratio in December was 97.92 versus 98.48 percent in November. (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 statewide, but decreased in two of the four Texas major new home markets last month. Statewide MLS data shows pending sales in December were 4,605 versus 4,461 in November. In Houston, pending new home sales in December decreased to 1,522 versus 1,538 in November. In San Antonio, pending sales last month were 596 versus 597 in November. Pending new home sales last month in Dallas-Ft. Worth were 1,773 versus 1,700 in November. In Austin, pending new home sales in December were 714 versus 626 in November. (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 December to 28,088 versus 27,146 in November. Last month, all four major Texas new home markets posted higher active listings. Last month's active listings in Houston were 11,545 versus 11,363 in November. Dallas-Ft. Worth's active listings in December were 7,513 versus 7,253 in November. December’s active listings in Austin were higher at 4,634 versus 4,348 in November. San Antonio reported active new home listings in December were 4,395 versus 4,182 in November. (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.
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.
