Texas new home market remains robust as sales climb again

The new home market across Texas remains robust as sales climbed again last month and the market continues to “normalize,” according to the monthly HomesUSA.com New Home Sales Report released today by its author, Ben Caballero, the nation’s top-ranked real estate agent and HomesUSA.com CEO.

The HomesUSA.com New Home Sales Report uses Multiple Listing Service data – the most complete, current, and accurate information available – from the Realtor Associations of North Texas, Houston, Austin, and San Antonio.

The 3-month moving average of new home sales in Texas for April was 5,537 versus 4,903 new homes sold in March. It was the second month is a row for the highest reported MLS total monthly sales in more than two years. Caballero explained that the increased supply of new homes has created a more balanced market which he notes is good for the builders and consumers.

“The Texas housing market continues to be robust and as it normalizes,” said Caballero, pointing to the new Days on Market numbers that continue to increase “from the abnormally low numbers last year.”

The HomesUSA.com New Home Sales Index shows the 3-month moving average for Days on Market for the four largest markets in Texas exceeded 100 days in April at 106.10, for the first time since September 2020. In April of 2022, Days on Market in the four largest markets in Texas averaged 58.47 days.

“Most new Homes are listed during construction, resulting in a higher average Days on Market than existing home sales,” Caballero said. “The DOM stops when the status changes to ‘sales pending’ but the average difference for new homes is about 45 to 60 days higher. The current new home DOM is healthy in my opinion.”

Caballero also notes that in Texas’ four top markets, the 3-month moving average new home prices rebounded last month was $451,868 versus $449,603 in March. Houston new home sales prices in April averaged $413,925 versus $403,897 in March. In Austin, the April average was $519,017 versus $510,336 in March, and San Antonio was $377,759 versus $375,551 in March. In Dallas-Ft. Worth, the 3-month moving average new home sales prices softened modestly in April at $487,799 versus $494,241 in March.

Local MLS data also indicates the market is normalizing as new home listings were somewhat lower last month. The 3-month moving average of active listings in Texas’ four largest markets for April was 26,593 versus 27,426 in March.

Pending new home sales were higher once again last month, climbing to their highest level in more than a year. The 3-month moving average of pending new home sales in April was 6,952 versus 6,798 in March.

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 April, set for Tuesday, May 23, 2023, at 10:00 am Eastern.

The HomesUSA.com monthly report is based on closed sales recorded inside the MLSs by the 10^th 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.

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