Texas Realtors releases 2023 Texas Real Estate Year in Review report
Austin, TX – March 12, 2024 (PRNewswire) While Texas home sales declined nearly 11% in 2023, median prices showed only modest movement up or down in most markets, according to the 2023 Texas Real Estate Year in Reviewreport released today by Texas Realtors.
Higher mortgage rates kept some buyers out of the market in 2023, leading to the lowest total sales (327,921) since 2016. The statewide median price of $335,100 moved down 1.4% compared to the previous year, but more metros saw median price increases than decreases.
“While higher mortgage rates kept some buyers on the sidelines last year, that has led to a lot of pent-up demand,” said Jef Conn, chairman of Texas Realtors. “Sales have picked up early this year, and this spring is shaping up to be an active market.”
Median Prices Were Mixed in 2023
Median price declined in 8 metro areas and increased in 17 metros.
All but 5 metros had less than a 5% change (higher or lower) in median price.
The biggest drop in median price (-10.4%) occurred in the Austin-Round Rock MSA. However, at $450,000, Austin-Round Rock remained the highest median price in Texas.
El Paso (7.6%) and McAllen-Edinburg-Mission (6.8%) saw the highest increases in median price.
More Inventory, More Days on Market, and Higher Price Per Square Foot Months of inventory, a statistic that measures how long it would take to sell the homes currently on the market at the current pace of sales, increased from 2.6 months at the end of 2022 to 3.4 months at the end of 2023. Months of inventory climbed in every market except Midland and Odessa, where it shrank by less than one month. Even with slight increases in housing inventory, the need for more housing in Texas remains a concern. Economists at the Texas Real Estate Research Center have said that a market balanced between supply and demand has between 6 and 6.5 months of inventory.
Homes spent more time on the market across the state except for Midland, which stayed flat. Statewide, homes remained on the market an average of 55 days, 20 days more than in 2022.
Price per square foot edged up 0.1% statewide, with increases in every market except Austin-Round Rock and San Antonio-New Braunfels. El Paso and the Rio Grande Valley had the largest increases in price per square foot.
2023 Texas Home Sales Volume vs. Median Price
“Despite headwinds from mortgage rates, Texas real estate sales continued at a healthy pace in 2023,” added Conn. “Market conditions vary by location—even down to the neighborhood level—so it’s always a smart move to work with a Realtor who knows your area.”
About the Texas Real Estate Year in Review Report
Data for the Texas Real Estate Year in Review Report is provided by the Data Relevance Project, a partnership among local Realtor associations and their MLSs, and Texas REALTORS®, with analysis by the Texas Real Estate Research Center. The report provides annual real estate sales data from a statewide perspective and for 25 metropolitan statistical areas in Texas. To view the report in its entirety, visit texasrealestate.com.
About Texas REALTORS®
With more than 150,000 members, Texas REALTORS® is a professional membership organization that represents all aspects of real estate in Texas. We are the advocate for REALTORS® and private property rights in Texas.
Redfin reports homebuyers are looking to leave Austin as housing costs stay high and some recent transplants move back to their hometowns
Seattle, WA – October 25, 2023 (BUSINESS WIRE) (NASDAQ: RDFN) More homebuyers looked to leave Austin, TX than move in during the third quarter, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s the first time on record there hasn’t been a net inflow into the Texas capital. Redfin’s records go back through 2017.
The number of Austin-based Redfin.com users looking for homes outside the metro area has more than doubled over the last year.
This marks a stark reversal for Austin, which was a magnet for out-of-town homebuyers looking for a more affordable place to live even before the pandemic. Once the pandemic began, ushering in an era of remote work and record-low mortgage rates, Austin’s popularity boomed: It was the number-one U.S. migration destination in the beginning of 2021.
Austin has fallen out of favor with relocating homebuyers for several reasons:
Rising home prices. By mid-2022, when Austin home prices peaked, prices were up more than 75% from before the pandemic. Austin prices have since declined from that peak, but homes are still much more expensive than before the pandemic. The gap between Austin’s home prices and those of where homebuyers commonly move from, like Los Angeles and San Francisco, is smaller than it used to be.
Monthly mortgage payments have doubled since before the pandemic. Soaring mortgage rates exacerbated Austin’s affordability problems, making monthly housing payments even more expensive than they already were with increasing prices. Today’s typical monthly payment for Austin’s median-priced home ($455,000) at this week’s average mortgage rate (7.63%) is $3,890, nearly double 2019’s typical payment of $2,136 (median sale price of $320,000; average mortgage rate of 3.94%).
Some homebuyers who moved to Austin are leaving. Austin Redfin agents report that some formerly remote workers moved back to their home city after being called back to the office, and a few others are moving back after trying Austin and realizing it’s not a long-term fit. Some others are likely leaving Austin to be closer to major job hubs as the labor market starts slowing.
Slowing migration is good news for Austin locals looking to buy. Austin’s median home price is down about 5% year over year, the biggest decline in the U.S., and it’s down nearly 20% from its pandemic peak. “I’m telling buyers that this is the first time in years they can get a deal on a house, even with high mortgage rates,” said Austin Redfin Premier agent Carmen Gioia. “It’s probably a better time to buy down than waiting for mortgage rates to drop, because once that happens, competition will escalate and prices will shoot up. Right now, buyers are able to take their sweet time, negotiate with sellers, and buy a home without getting into a wild bidding war.”
Homebuyers leaving Austin are most commonly moving to other places in Texas. San Antonio and Corpus Christi are two of the three most popular destinations for Redfin.com users moving away from Austin; the other is Denver.
Share of U.S. homebuyers moving to a different part of the country is near record high
Nationwide, the share of homebuyers relocating to a different metro area is still near record highs. Roughly one-quarter (25.9%) of homebuyers looked to move to a different part of the country in the third quarter. That’s essentially flat from the record high of 26% hit in August, and up from 24% a year ago and about 19% before the pandemic began.
There are 9% fewer Redfin.com users looking to move away from their home metro than a year ago–the biggest annual drop on record. But out-of-town home searches are holding up better than in-town searches: There are 17% fewer Redfin.com users searching within their home metro than a year ago.
Homebuyers are moving into relatively affordable but climate-risky places
Sacramento, CA, Las Vegas and Orlando, FL were the most popular destinations for relocating homebuyers in the third quarter. Popularity is determined by net inflow, a measure of how many more Redfin.com users looked to move into an area than leave.
Half of the 10 most popular destinations are in Florida, and 8 of the 10 are on the East Coast–although the two most popular are in the western part of the U.S. Nearly all of the places homebuyers are moving to are more affordable than the places people are coming from, which helps explain why they’re so popular even though most face increasing climate risks. Sacramento, for instance, faces severe heat risk, and Orlando faces extreme wind/hurricane risk.
Top 10 Metros Homebuyers Are Moving Into, by Net InflowNet inflow = Number of Redfin.com home searchers looking to move into a metro area, minus the number of searchers looking to leave
Rank
Metro*
Net Inflow, Q3 2023
Net Inflow, Q3 2022
Top Origin
Top Out-of-State Origin
1
Sacramento, CA
4,800
8,700
San Francisco, CA
Chicago, IL
2
Las Vegas, NV
4,500
7,000
Los Angeles, CA
Los Angeles, CA
3
Orlando, FL
4,000
3,000
New York, NY
New York, NY
4
Myrtle Beach, SC
3,800
3,200
Washington, D.C.
Washington, D.C.
5
North Port-Sarasota, FL
3,700
5,200
New York, NY
New York, NY
6
Portland, ME
3,500
3,300
Boston, MA
Boston, MA
7
Tampa, FL
3,400
6,700
New York, NY
New York, NY
8
Cape Coral, FL
3,300
5,200
Chicago, IL
Chicago, IL
9
Miami, FL
3,200
8,000
New York, NY
New York, NY
10
Salisbury, MD
3,100
2,500
Washington, D.C.
Washington, D.C.
*Combined statistical areas with at least 500 users searching to and from the region in July 2023-Sept. 2023
Homebuyers are leaving San Francisco, New York and Los Angeles for more affordable places
Homebuyers are leaving San Francisco, New York and Los Angeles more than any other metro in the country. That’s based on net outflow, a measure of how many more Redfin.com users are looking to leave a metro than move in.
Expensive coastal job centers typically top the list of metros homebuyers are leaving, mainly because homebuyers are seeking more affordable places to live. The median sale price in San Francisco, for instance, is more than double that of Sacramento, the most common destination for homebuyers leaving the Bay Area.
Top 10 Metros Homebuyers Are Leaving, by Net OutflowNet outflow = Number of Redfin.com home searchers looking to leave a metro area, minus the number of searchers looking to move in
Rank
Metro*
Net Outflow, Q3 2023
Net Outflow, Q3 2022
Portion of Local Users Searching Elsewhere
Top Destination
Top Out-of-State Destination
1
San Francisco, CA
25,800
37,700
24%
Sacramento, CA
Seattle, WA
2
New York, NY
25,300
23,500
30%
Miami, FL
Miami, FL
3
Los Angeles, CA
20,200
33,500
19%
Las Vegas, NV
Las Vegas, NV
4
Washington, D.C.
13,900
18,800
19%
Salisbury, MD
Salisbury, MD
5
Chicago, IL
4,800
5,600
16%
Milwaukee, WI
Milwaukee, WI
6
Boston, MA
4,300
9,300
21%
Portland, ME
Portland, ME
7
Hartford, CT
3,300
900
79%
Boston, MA
Boston, MA
8
Denver, CO
2,200
3,700
35%
Chicago, IL
Chicago, IL
9
Detroit, MI
2,000
4,500
26%
Grand Rapids, MI
Cape Coral, FL
10
San Diego, CA
1,800
inflow of 6,900
29%
Las Vegas, NV
Las Vegas, NV
*Combined statistical areas with at least 500 users searching to and from the region in July 2023-Sept. 2023
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country’s #1 real estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we’ve saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 5,000 people.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email press@redfin.com. To view Redfin’s press center, click here.
Auston, TX – Oct. 20, 2023 (PRNewswire) Though the overall median price of homes sold in Texas in the third quarter of 2023 decreased 1.5% compared to the same period one year ago, more Texas metro areas saw median price increases than decreases, according to the 2023-Q3 Quarterly Housing Report released today by Texas Realtors. In Q3 2023, active listings, days homes spent on the market, and months of inventory all saw increases from the same period in 2022.
“We are continuing to see the housing market progress toward more balance between buyers and sellers,” said Marcus Phipps, 2023 Chairman of Texas Realtors. “An increase in the supply of homes and the average number of days homes stay on the market means that buyers in many areas may have more choices and a little more time to make decision. However, these trends vary by metro and even by neighborhood, so it’s smart to discuss market conditions in your area with your Realtor.”
The median sales price of Texas homes in Q3 2023 decreased to $340,000 from $345,000 in the same period last year. Approximately half of the homes sold in the third quarter were in the $200,000 – $399,999 price range. At the lowest and highest ends of the price distribution, 13% of homes were sold for under $200,000, while 4% sold for at least $1 million.
Texas homes spent an average of 48 days on the market in Q3 2023, 17 days longer than in the same quarter last year. Taking the number of days to close into consideration, on average it took 11 days longer to sell a property in Q3 2023 than in the same quarter last year.
Months of inventory, or how long it would take to sell the existing number of homes on the market at the current pace of sales, stood at 3.7 months in the third quarter of 2023, which was an increase from 2.7 months in the same period last year. A balanced market is estimated at 6 to 6.5 months of inventory, according to the Texas Real Estate Research Center.
Active listings increased 15.2% in the third quarter of 2023 compared to the same period in 2022.
“The real estate market can change in subtle or significant ways over short periods of time,” said Chairman Phipps. “It’s our job as Realtors to help Texans understand and navigate those changes. We are here to simplify the process and to support buyers and sellers every step of the way to achieve their homeownership goals.”
About the Texas Quarterly Housing Report
Data for the Texas Quarterly Housing Report is provided by the Data Relevance Project, a partnership among local REALTOR® associations and their MLSs, and Texas REALTORS®, with analysis by the Texas Real Estate Research Center at Texas A&M University. The report provides quarterly real estate sales data for Texas and 25 metropolitan statistical areas in Texas. To view the report in its entirety, visit texasrealestate.com.
About Texas REALTORS®
With more than 150,000 members, Texas REALTORS® is a professional membership organization that represents all aspects of real estate in Texas. We are the advocates for REALTORS® and private property rights in Texas. Visit texasrealestate.com to learn more.
