The two biggest new home markets in Texas last month went in opposite directions, according to the HomesUSA.com® New Homes Sales Index and other data released today.
Dallas-Ft. Worth, which last year, surpassed Houston as the state’s – and perhaps the nation’s – biggest new home market in total sales volume, saw a faster sales pace of new home sales and a big jump in average home prices in March. Houston, now second in Texas new home sales, watched its new home sales pace slow in March and its average sales price barely rise.
The Index is a 12-month rolling 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.
The pace of new home sales was essentially flat statewide in March, from 122.12 in February to 122.05 in March. But in Dallas-Ft. Worth, the sales of new homes quickened. The DOM decreased in Dallas from 118.94 days in February to 116.69 days in March. In Houston, the opposite happened. Its DOM increased from 135.27 days in February to 137.39 days in March. Both markets showed the most significant month-to-month changes in the HomesUSA.com Index.
In Austin, its DOM decreased from 113.65 days in February to 112.89 days in March, while San Antonio’s increased from 108.25 days in February to 108.75 days in March.
New home prices were significantly higher in Dallas at $354,117 for March, jumping up from a 12-month rolling average of $351,539 in February. Prices were nearly flat in Houston where the average new home price in March was $357,321, up slightly from $357,160.
Ben Caballero, the owner of HomesUSA.com, is sharing this Texas new homes data in advance of tomorrow’s announcement by the Commerce Department on New Home Sales for March. The Commerce Department will report nationwide new home construction data at 10:00 am Eastern on Friday, March 23.
“We have a mixed bag of good news and not quite so good news,” said Caballero. “The growing strength of the Dallas-Ft. Worth new home sales market continues to be astonishing,” he said, adding, “while Houston numbers are worth watching. Is it a trend or just a bump in the road? Overall, Austin and San Antonio remain solid new housing markets as the Texas economy continues to perform strong,” he added.
Statewide home prices continue to stabilize and that’s welcomed new home buyers, who saw monthly new home prices increases dominate much of 2017. The statewide average new home price rose slightly to $349,757 in March from $349,017 in February.
In Austin, the average new home price fell significantly in March to $371,535 from $373,643 in February. The average new home price in San Antonio increased to $292,955 in March, up from $292,556 in February.
While new home sales were strong statewide in Texas for March, sales growth was relatively flat. The rolling 12-month average of new home sales statewide was down slightly from 3,601 in February to 3,596 in March. That’s according to data compiled by HomesUSA.com® from local MLS and trade associations, including the Houston Association of REALTORS®, North Texas Real Estate Information Systems, San Antonio Board of REALTORS® and the Austin Board of REALTORS®.
The state’s two biggest markets – Dallas-Ft. Worth and Houston – both experienced flat home sales in March. According to HomesUSA.com®, based on a 12-month rolling average, Dallas-Ft. Worth home sales in March were 1,324, down slightly from 1,337 sales in February. Houston home sales in March were 1,188, also down somewhat from 1,195 sales in February.
New home sales were up in Austin to 615 sales in March from 604 in February, and they were marginally higher in San Antonio with 469 sales in March, up from 466 sales in February.
Caballero notes the average Days on Market for New Homes “is about 65 days higher for new homes than for existing or ‘pre-owned’ homes.” Why?
“There’s a huge difference between selling a new home and a pre-owned or existing home,” Caballero explained. “New homes are often listed for sale during the early stages of construction. This early market exposure allows buyers the opportunity to customize the home. Plus, by placing more inventory on the market, as it is being built, expands the inventory of available homes, and that’s especially helpful for buyers and agents in a tight housing market.”
Caballero adds, “It’s important to understand that DOM for new homes, cannot be compared with existing homes because most new homes are listed while under construction.”
The HomesUSA.com® New Home Sales Index is the first index to track new home sales. Created by Caballero, who was named “Most Innovative Real Estate Agent” by real estate news firm Inman News, the index is an analysis by HomesUSA.com of sales of homes listed in the Dallas-Fort Worth, Houston, Austin and San Antonio local Multiple Listing Services (MLS).
