Texas home builders see “market shift” as total sales drop

HomesUSA.com reports higher new home prices despite more active listing inventory

DALLAS, Aug. 22, 2022 (GLOBE NEWSWIRE) — As more new home listings appear in local Multiple Listing Services, Texas home builders are seeing a “market shift.” New home sales dropped last month as new home inventory continued to increase according to Ben Caballero, the nation’s top-ranked real estate agent and CEO of HomesUSA.com.

According to the July 2022 HomesUSA.com New Home Sales report, the 3-month moving average of new home sales for Dallas-Ft. Worth, Houston, Austin, and San Antonio fell in July to 3,724 versus 4,098 in June. Active listings in the local MLSs in Dallas-Ft. Worth, Houston, Austin, and San Antonio jumped to 18,950 in July, up from 15,131 in June – an increase of over 25% in the last 30 days.

“Texas home builders are experiencing a significant market shift,” said Caballero. “Total new home sales are down, while prices and inventory continue to increase,” he added.

“Surprisingly, new homes sold at a faster pace, spending fewer days on the market,” Caballero noted. “And while these market changes are challenging builders, I expect the strength of the Texas economy will insulate Texas home builders from a significant slowdown,” he said.

The HomesUSA.com New Home Sales Index shows the new home sales pace quickened again last month as the 3-month moving average for Days on Market was 51.19 days, down from 54.07 days in June.

The HomesUSA.com July 2022 Texas new homes report used data from the REALTOR Associations of Austin, North Texas Real Estate Information Systems, Houston, and San Antonio.

New home prices statewide increased last month – a continuing trend. The 3-month moving average of new home sale prices in July was a record $469,683 versus $458,448 in June. The average new home price is up over $78,500 since July 2021, an increase of more than 20 percent year-over-year.

The average new home price set a record high in three major Texas new home markets. Dallas-Ft. Worth was $513,727 in July versus $501,327 in June. Houston ($424,398 versus $419,573) and San Antonio ($407,028 versus $391,577) also posted record prices. The average new home price also was higher in Austin ($546,978 versus $541,079), but short of the Feb. 2022 record of $561,134.

Caballero noted statewide pending new home sales also dropped, impacted by buyer cancellations. In July, the 3-month average of pending new home sales statewide was 4,240 versus 4,379 in June. Three of the four major new home markets in Texas – Dallas-Ft. Worth, Houston, and San Antonio – reported a drop in pending sales last month. Conversely, Austin reported a slight increase of pending sales in July to 617 from 594 in June.

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 July, set for Tuesday, August 23 at 10:00 am Eastern.

The HomesUSA.com monthly report includes 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 declined statewide and in all four major new home markets in July. Houston’s DOM was 60.05 days versus 64.75 days in June. In Austin, the DOM decreased to 25.76 days versus 26.72 days in June. In Dallas-Ft. Worth, the DOM decreased to 50.32 days from 51.42 days in June. In San Antonio, the DOM was 56.46 days versus 57.03 days in June. (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 lower statewide and in all four major new home markets last month, according to the 3-month moving average. In Houston, July’s total sales were 1,514 versus 1,691 in June. Dallas-Ft. Worth new home sales also decreased to 1,180 versus 1,285 in June. In San Antonio, new home sales decreased to 454 from 538 in June. In Austin, July sales totaled 576 versus 584 in June. (See Chart 2: Texas New Home Sales)

Texas New Home Prices
The average price of new homes in Texas shows higher 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 higher in July at $513,727 versus $501,327 in June. Houston’s average new home price was also higher in July at $424,398 versus $419,573 in June. In San Antonio, the average new home price increased in July at $407,028 versus $391,577 in June. Austin’s 3-month moving average price also rose in July to $546,978 from $541,079 in June. (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 and in two markets, exceeded it. Statewide, the 3-month moving average of the sales-to-list price ratio in July was 99.899 versus 99.954 percent in June. Dallas-Ft. Worth’s ratio was 100.605 versus 100.688 percent in June. In Houston, the ratio was 99.018 versus 99.097 in June. In Austin, the sales-to-price ratio in July was 100.774 versus 100.939 percent in June. San Antonio’s ratio in July was 99.888 versus 99.853 in June. (See Chart 4: Texas Sales-to-List Price Ratio)

Texas Pending New Homes Sales Data
Based on local MLS data, pending new home sales dropped statewide and in three of the four Texas major new home markets last month. Statewide MLS data shows pending sales in July were 4,240 versus 4,379 in June. Houston’s pending sales in July were 1,607 versus 1,725 in June. In San Antonio, pending sales last month were 446 versus 467 in June. Pending new home sales last month in Dallas-Ft. Worth were 1,569 versus 1,593 in June. Austin was the exception, as pending sales in July were 617 versus 594 in June. (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 July to 18,950 versus 15,131 in June. Last month, all four major Texas new home markets posted higher active listings. Dallas-Ft. Worth’s active listings in July were 4,595 versus 2,915 in June. Last month’s active listings in Houston were 8,911 versus 7,900 in June. July’s active listings in Austin were higher at 2,797 versus 2,129 in June. San Antonio reported active new home listings in July were 2,647 versus 2,186 in June. (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’s 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 [email protected].

“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
[email protected]

Image: Ben Caballero
https://www.homesusa.com/wp-content/uploads/2018/09/Ben-Caballero-Portrait-Grey-4288×2848.jpg

Individual Chart images:

Chart 1: Texas New Homes Tracking – Days on Market – July 2022: https://homesusa.com/wp-content/uploads/2022/08/Chart-1-Texas-Days-on-Market.png

Chart 2: Texas New Home Sales – July 2022: https://homesusa.com/wp-content/uploads/2022/08/Chart-2-Texas-New-Home-Sales.png

Chart 3: Texas New Home Sales Prices – July 2022: https://homesusa.com/wp-content/uploads/2022/08/Chart-3-Texas-New-Home-Sales-Prices.png

Chart 4: Texas Sales-to-List-Price Ratio – July 2022: https://homesusa.com/wp-content/uploads/2022/08/Chart-4-Texas-Sales-to-List-Price-Ratio.png

Chart 5: Texas Pending New Home Sales – July 2022: https://homesusa.com/wp-content/uploads/2022/08/Chart-5-Texas-Pending-New-Home-Sales.png

Chart 6: Texas Active Listings for New Homes – July 2022: https://homesusa.com/wp-content/uploads/2022/08/Chart-6-Texas-Active-Listings.png

Chart A: Texas 12-Month Moving Averages – New Homes – July 2022: https://homesusa.com/wp-content/uploads/2022/08/Chart-A-12MonthChart-DataOnly.png

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