AUSTIN – (Realty News Report) – Texas Realtors say 393,615 homes were sold in the Lone Star State in 2020, the highest annual total in the history of Texas real estate.
“Texas real estate sales broke records despite being in the middle of a pandemic,” said Marvin Jolly, 2021 chairman of Texas Realtors. “Housing inventory dropped to historically low levels in many areas of the state, and that shortage of homes for sale made many markets extremely favorable to sellers and challenging for buyers.”
The tight inventory amid strong demand pushed Texas home prices to record highs. The median price of a home sold in Texas was $259,230 in 2020, up 8 percent over the median price of last year.
Low mortgage rates, with 30-year mortgages available below 3 percent, energized housing markets to record highs. The statewide sales total in 2020 was up 9.5 percent over sales in 2019, the Realtors association said.
The low mortgage rates made homebuying more affordable despite rising home prices. Apartment dwellers found that monthly mortgage payments compared favorably with their monthly rents. In 2020, apartment rents fell in all of the major markets in Texas, as landlords adjusted to face the competition, according to the 2020 Texas Real Estate Year in Review report released by Texas Realtors.
Even though lower mortgage rates made homebuying more affordable, the rising home prices raised concerns about affordability.
“Rising home prices coupled with the housing shortage has made affordability a challenge across our state. These issues remain top of mind for Texas Realtors as we continue through the 87th legislative session,” Jolly said. “We will continue to champion legislation that will ensure homeownership remains attainable and a sound investment for years to come.”
Housing inventory dropped to 1.7 months of inventory, a decrease of 1.3 months from 2019. According to the Texas Real Estate Research Center, a market balanced between supply and demand has between 6.0 and 6.5 months of inventory. Texas is a strong seller’s market now.
Active listings statewide declined 22.1% from 2019 to 2020. Homes spent an average of 55 days on the market, four days less than 2019.
Texas Homes Forecast: What’s Ahead in 2021?
“The 2021 housing market will be characterized by strong demand with low inventories accompanied by strong price growth,” explained Luis Torres, Ph.D., research economist with the Texas Real Estate Research Center at Texas A&M University. “Inventories of homes priced under $300,000 will be especially low, affecting sales in that price range. The economic recovery helped by the additional federal fiscal stimulus and vaccination rates will contribute to Texas housing demand in 2021.”
Home builder activity was up last year. Some 128,331 new homes were sold in 2020.
The median per square-foot price of a Texas house (included new and existing homes) was $128.74 in 2020, up 6.2 percent from 2019.
The annual sales total of 393,615 residential transactions includes single-family homes, townhomes and condos, a Texas Realtors spokesman said.
In Houston, the Houston Association of Realtors reports 96,151 single-family home sales were sold in 2020, a 10.5 percent increase over the 86,996 homes sold in 2019.
Feb. 26, 2021 Realty News Report Copyright 2021
File: Texas Home Sales Shatter All-Time Record
File: (2) Texas Realtors. Houston Association of Realtors. Texas Home Sales Shatter All-Time Record in 2020. Luis Torres. Marvin Jolly.