With the current dynamics of the Texas housing market, many potential homebuyers and sellers are asking, “Are home prices dropping in Texas?” While the market has seen fluctuations, recent data from the Texas Real Estate Research Center at Texas A&M University provides insights into these trends.
According to the Texas Real Estate Research Center, July saw a significant increase in home sales, with a 15.4% month-over-month (MOM) rise, resulting in 27,049 homes sold across the state. Houston led this surge with a 21.7% increase, followed by Dallas, San Antonio, and Austin. This recovery came after a slower June, partially due to fewer business days.
Home Sales and Market Activity
However, new listings have dropped by nearly 10%, with Houston experiencing the most significant decline. Despite this, active listings only fell slightly, indicating a counteracting effect from the increased sales.
Regional Variations in Home Prices
While some areas of Texas are seeing price adjustments, the changes are not uniform. For instance, Texas’ median home price rose by 1.4% in July, reaching $337,382. Houston saw a similar increase, while Dallas experienced a slight decline of 0.3%. The Texas Repeat Sales Home Price Index also showed a 0.3% MOM decrease but a 1.4% year-over-year increase, suggesting a stabilizing trend.
Dr. Jim Gaines, a research economist at the Texas Real Estate Research Center, notes, “These regional variations highlight the importance of localized market conditions in understanding overall price trends.”
Building Permits and Construction Activity
Building permits in Texas saw a sharp rebound in July, increasing by 26.3% MOM. This growth was most pronounced in Austin and Dallas, although single-family construction starts have been on a downward trend since March 2024. Despite this decline, the total value of single-family starts rose significantly over the past year.
Interest Rates and Their Impact
Interest rates have also played a crucial role in the housing market. In July, the average ten-year U.S. Treasury Bond yield fell slightly, and mortgage rates dipped, with the 30-year fixed-rate dropping to 6.85%. These changes have influenced buyer affordability and overall market activity.
What Does This Mean for Buyers and Sellers?
For homeowners considering selling, setting realistic expectations based on current market conditions is essential. Potential buyers may find opportunities to negotiate better deals given the recent trends in home prices and market activity.
“We encourage both buyers and sellers to stay informed and work with knowledgeable real estate professionals to navigate these changes,” adds Sherri Klutts.
Looking For A Texas Home?
If you’re thinking about listing your home or buying a property in Texas, contact Texas DFW Realtor. Our team of experts is here to provide personalized guidance and help you make informed decisions in this evolving market. Visit TexasDFWRealtor.com to get started today!
