DALLAS, Nov. 22, 2022 (GLOBE NEWSWIRE) -- Texas home builders are offering more buyer incentives as new home prices drop, Days on Market increase and the market normalizes, according to Ben Caballero, the nation’s top-ranked real estate agent and CEO of HomesUSA.com.
Caballero notes that while buyer incentives are being used to maintain prices, the 3-month moving average of home prices still fell in October to a statewide average of $463,482 versus $467,956 in September. Average new home prices were lower in all four of Texas’ largest new home markets including Dallas-Ft. Worth, Houston, Austin, and San Antonio.
The HomesUSA.com New Home Sales report uses Multiple Listing Services data from the REALTOR Associations of Austin, North Texas, Houston, and San Antonio. Selling pressure on builders come as inventory statewide last month rose for the sixth straight month, with local MLSs showing active listings in October totaling 25,887 versus 24,277 for September.
“As inventory goes up and the pace of new home sales continue to slow, builders are seeing a more normal real estate market – quite a change from August 2021 when new homes were flying off the shelves,” Caballero said.
Remarkably, new homes sales were higher last month with MLS reported statewide sales totaling 4,056 versus 3,713 in September.
"Home buyers are benefiting from a more balanced market," Caballero added. "But the strength of this new home market – and builders – remains incredibly resilient, considering the impact on buyers from rising interest rates."
According to the HomesUSA.com New Home Sales report based on MLS data, the 3-month moving average of October home sales shows Houston lead all markets with 1,520 sales versus 1,373 in September. Dallas-Ft. Worth followed with 1,209 sales versus 1,144 in September. In Austin, October home sales were 752 versus 687 in September, and in San Antonio, October home sales were 574 versus 510 in September.
The HomesUSA.com New Home Sales Index shows the pace of new home sales slowed again as the statewide 3-month moving average for Days on Market in October increased to 55.77 days versus 50.96 days in September.
The average new home price in Dallas-Ft. Worth fell slightly in October to $500,437 from $502,686 in September. The average price in Houston dropped marginally in October to $429,205 from $429,225 in September. Austin’s average price in October was $531,347, down a little more than $10,000 from its September average of $541,563. San Antonio’s average home price in October was $390,159, also more than $10,000 lower than its $400,473 average price in September.
Caballero noted statewide pending new home sales reported to the MLSs increased last month. In October, the 3-month average of pending new home sales statewide was 4,591 versus 4,412 in September. Three of the four major new home markets in Texas – Houston, Dallas-Ft. Worth and San Antonio – reported an increase in pending new home sales last month, with Austin being the exception. Austin reported October pending sales of 654 versus 670 in September.
The HomesUSA.com Texas New Home Sales Report and New Home Sales Index are being shared in advance of the Commerce Department’s release of its nationwide New Residential Sales Report for October, set for Wednesday, November 23 at 10:00 am Eastern.
The HomesUSA.com monthly report is based on closed sales recorded inside the MLSs by the 10th 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.
Days on Market – New Homes in Texas (Exclusive Data)
The HomesUSA.com New Home Sales Index showed the 3-month moving average of Days on Market increased statewide and in all four major new home markets in October. Houston’s DOM was 63.88 days versus 60.51 days in September. In San Antonio, the DOM was 61.17 days versus 56.69 days in September. In Austin, the DOM increased to 32.42 days versus 28.70 days in September. In Dallas-Ft. Worth, the DOM increased to 57.72 days from 50.31 days in September. (See Chart 1: Texas New Homes Days on Market)
Texas New Home Sales Data
Based on all available local MLS data, total new home sales in Texas were higher statewide and in all four major new home markets last month, according to the 3-month moving average. In Houston, October’s total sales were 1,520 versus 1,373 in September. Dallas-Ft. Worth new home sales increased to 1,209 versus 1,144 in September. In San Antonio, new home sales also increased to 574 from 510 in September. In Austin, October sales totaled 752 versus 687 in September. (See Chart 2: Texas New Home Sales)
Texas New Home Prices
The average price of new homes in Texas shows lower prices statewide and in all four major new home markets last month. Dallas-Ft. Worth reported its 3-month moving average price for new homes was lower in October at $500,437 versus $502,686 in September. Austin's 3-month moving average price decreased in October to $531,347 from $541,563 in September. In San Antonio, the average new home price also decreased in October at $390,159 versus $400,473 in September. In Houston, the average new home price was lower in October at $429,205 versus $429,225 in September. (See Chart 3: Texas New Home Prices)
Texas Sales-to-List Price Ratio
New home sales statewide and in Dallas-Ft. Worth, Houston, Austin, and San Antonio still hover near 100 percent of the asking price. Statewide, the 3-month moving average of the sales-to-list price ratio in October was 98.73 versus 99.29 percent in September. Dallas-Ft. Worth’s ratio was 99.02 versus 99.65 percent in September. In Houston, the ratio was 98.14 versus 98.49 percent in September. In Austin, the sales-to-price ratio in October was 99.21 versus 100.18 percent in September. San Antonio's ratio in October was 98.99 versus 99.45 percent in September. (See Chart 4: Texas Sales-to-List Price Ratio)
Texas Pending New Homes Sales Data
Based on local MLS data, pending new home sales rose statewide and in three of the four Texas major new home markets last month. Statewide MLS data shows pending sales in October were 4,591 versus 4,412 in September. In Houston, pending sales in October were 1,581 versus 1,570 in September. Pending new home sales last month in Dallas-Ft. Worth were 1,769 versus 1,659 in September. In San Antonio, pending sales last month were 587 versus 514 in September. Austin was the exception, as pending sales in October were 654 versus 670 in September. (See Chart 5: Texas Pending New Home Sales)
Texas Active Listings for New Homes
MLS data shows the 3-month moving average for active listings statewide increased in October to 25,887 versus 24,277 in September. Last month, all four major Texas new home markets posted higher active listings. Dallas-Ft. Worth's active listings in October were 6,770 versus 6,249 in September. Last month's active listings in Houston were 11,115 versus 10,642 in September. October’s active listings in Austin were higher at 4,089 versus 3,819 in September. San Antonio reported active new home listings in October were 3,913 versus 3,567 in September. (See Chart 6: Texas Active Listings and Chart A: 12-Month Moving Averages)
About the HomesUSA.com New Home Sales Index
The HomesUSA.com Index is reported as both a 3-month and 12-month moving 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. Created by Ben Caballero, founder and CEO of HomesUSA.com, it is the first Days on Market index to track Texas new home market and includes homes listed while under construction.
About Ben Caballero and HomesUSA.com®
Ben Caballero, founder and CEO of HomesUSA.com, is a three-time Guinness World Record title holder for ‘Most annual home sale transactions through MLS by an individual sell-side real estate agent – current.’ Ranked by REAL Trends as America’s top real estate agent for home sales since 2013, Ben is the most productive real estate agent in U.S. history. He is the only agent to exceed $1 billion in residential sales transactions in a single year, a feat first achieved in 2015 and repeated each year through 2018 when he achieved more than $2 billion. An award-winning innovator and technology pioneer, Ben works with more than 60 home builders in Dallas-Fort Worth, Houston, Austin, and San Antonio. His podcast series is available on iTunes and Google Podcasts. Learn more at HomesUSA.com |Twitter: @bcaballero - @HomesUSA | Facebook: /HomesUSAdotcom.
Note for journalists: You may contact Ben Caballero directly on his cell at (214) 616-9222 or by email at ben@homesusa.com.
REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.
Media Contact:
Kevin Hawkins
(206) 866-1220
kevin@wavgroup.com
Image: Ben Caballero
https://www.homesusa.com/wp-content/uploads/2018/09/Ben-Caballero-Portrait-Grey-4288x2848.jpg
Individual Chart images:
Chart 1: Texas New Homes Tracking – Days on Market – October 2022: https://homesusa.com/wp-content/uploads/2022/11/Chart-1-Texas-Days-on-Market.jpg
Chart 2: Texas New Home Sales Market – October 2022: https://homesusa.com/wp-content/uploads/2022/11/Chart-2-Texas-New-Home-Sales.jpg
Chart 3: Texas New Home Sales Prices Market – October 2022: https://homesusa.com/wp-content/uploads/2022/11/Chart-3-Texas-New-Home-Sales-Prices.jpg
Chart 4: Texas Sales-to-List-Price Ratio Market – October 2022: https://homesusa.com/wp-content/uploads/2022/11/Chart-4-Texas-Sales-to-List-Price-Ratio.jpg
Chart 5: Texas Pending New Home Sales Market – October 2022: https://homesusa.com/wp-content/uploads/2022/11/Chart-5-Texas-Pending-New-Home-Sales.jpg
Chart 6: Texas Active Listings for New Homes Market – October 2022: https://homesusa.com/wp-content/uploads/2022/11/Chart-6-Texas-Active-Listings.jpg
Chart A: Texas 12-Month Moving Averages Market – October 2022: https://homesusa.com/wp-content/uploads/2022/11/Chart-A-12MonthChart-DataOnly.jpg
