Texas new home sales, prices, sales pace bounce higher

Special to the Empire-Tribune
Texas home builders continue to see astonishing demand for new homes, as new home sales, average home prices and the speed of sales all increased last month statewide.

DALLAS — Texas home builders continue to see astonishing demand for new homes, as new home sales, average home prices and the speed of sales all increased last month statewide, HomesUSA.com reported today.

The three-month moving average for Days on Market dropped from 108 days to 76 days in just the last year, according to the HomesUSA.com News Home Sales Index. It’s a new record for the fastest sales pace of new homes since HomesUSA.com started reporting Days on Market data in 2017.

The HomesUSA.com report is based on data from the North Texas Real Estate Information Systems, Houston Association of REALTORS, Austin Board of REALTORS Multiple Listing Services and San Antonio Board of REALTORS.

“Today’s new home sales are accelerating so rapidly, the trends are best reflected in the 3-month moving averages we report each month, versus the 12-month averages,” said Ben Caballero, owner of HomesUSA.com and current Guinness World Record titleholder. “Going forward, HomesUSA.com will focus our reports on the 3-month averages as they better reflect current market activity,” he added.

Caballero noted that HomesUSA.com will continue to provide the 12-month moving averages as well as comparisons to the 3-month averages in its monthly new homes report.

Caballero, the nation’s leading new homes sales agent, explained, "The demand for new homes is going to continue for many months if not years in Texas." Caballero explains that because new homes are listed during construction, they carry an average DOM of approximately 60 days higher than existing homes. “Throughout Texas, we are seeing a gold-rush response as buyers flock to lotteries, because demand is far exceeding supply,” he added.

While April home sales in Texas were higher, active listings and pending sale of new homes statewide plummeted last month. Caballero explained that homes sales are actually “much higher than the MLS data shows, because builders are selling homes before they can list them in the MLS!”

Texas new home sales bounced higher to 4,133 sales from 3,753 sales in March, the 3-month moving average for April shows. New home sales were higher in Houston, Dallas, and San Antonio, with continued inventory tightening impacting Austin new homes sales, which were lower last month.

The 3-month moving average recorded 13,996 new homes listed statewide, down from 16,055 in March, or a decline of almost 15 percent. Active listings in the last year tumbled 41 percent from 23,895 active listings reported in April 2020. The 3-month moving average of pending sales decreased in April with 4,225 versus 5,814 in March, impacted by a reduction of new home inventory.

Caballero noted that statewide, the 3-month moving average of new home prices rose in April to $382,084 versus $375,670 in March. The average price of new homes was higher in all four of Texas’ largest new home markets, including Dallas-Ft. Worth, Houston, Austin and San Antonio. Austin saw the biggest monthly gain in its average new home price as the 3-month moving average jumped more than 5 percent last month to $439,353 from $417,819 in March.

Caballero is sharing the HomesUSA.com New Homes Report in advance of the release by the Commerce Department of its nationwide New Residential Sales report for May set for Tuesday, May 25, at 10:00 am Eastern.

Caballero noted the monthly HomesUSA.com report includes both 3-month and 12-month moving averages for all essential market data, including Days on Market, sales volume, sales prices, a sales-to-list price ratio, pending sales, and active listings. The 3-month 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 dropped in three of its four largest markets: Dallas-Ft. Worth, Austin and San Antonio. The DOM for Dallas-Ft. Worth was 66.89 days in April versus 70.24 days in March. Austin's DOM was 55.36 days in April versus 57.47 days in March. In San Antonio, the DOM was 70.58 days in April versus 73.20 days in March. Houston was the anomaly, as its DOM was 92.64 days in April versus 91.66 days in March. (See Chart 1: Texas New Homes Days on Market)

Texas New Home Sales Data

Total new home sales for last month bounced higher statewide in Texas, driven by stronger sales in three of its major new home markets, according to the 3-month moving averages. Houston posted the strongest sales increase with April sales totaling 1,626 versus 1,339 in March. In Dallas-Ft. Worth, April sales also jumped, totaling 1,338 versus 1,274 in March. San Antonio also posted higher sales with April totaling to 666 versus 596 in March. Austin’s April new home sales were lower, totaling 504 versus 544 in March. (See Chart 2: Texas New Home Sales)

Texas New Home Prices

The average price of new homes was higher statewide in all four major new home markets in Texas. Austin's 3-month moving average price – the highest among the top four markets – was $439,353 in April versus $417,819 in March. Dallas-Ft. Worth reported its 3-month moving average price for new homes was $412,057 in April versus $400,431 in March. In Houston, the average new home price was $372,345 in April versus $365,112 in March. In San Antonio – the top market with the smallest increase – the average new home price was $305,492 in April versus $304,389 in March. (See Chart 3: Texas New Home Prices)

Texas Sales-to-List Price Ratio

New home sales continue to push higher and sell closer to the asking price. April’s 3-month moving average of the sales-to-list price ratio statewide was 98.959 percent versus 98.787 percent in March. In Dallas-Ft. Worth, it was 99.180 percent in April versus 98.893 percent in March. In Houston, it was 98.610 percent in April versus 98.451 percent in March. The Austin ratio was 99.994 percent in April versus 99.701 percent in March, and San Antonio's ratio was 98.590 percent last month versus 98.499 percent in March. (See Chart 4: Texas Sales-to-List Price Ratio)

Texas Pending New Homes Sales Data

New home sale activity in Houston, Dallas-Ft. Worth, Austin and San Antonio – combined with record-low inventory – pushed the 3-month moving average for pending new home sales lower in April. Statewide pending sales dropped in April to 4,225 versus 5,814 in March. Dallas-Ft. Worth pending sales were down last month to 1,464 vs 2,088 in March. Houston’s April pending sales were 1,756 versus 2,256 in March. In San Antonio, pending sales last month were 730 versus 1,031 in March. Austin reported pending sales in April of 275 versus 438 in March. (See Chart 5: Texas Pending New Home Sales)

Texas Active Listings for New Homes

As demand continues to rapidly outpace supply despite higher building starts, builders’ inventory continues to tighten. The 3-month moving average shows active listings plummeted statewide in April to 13,996 versus 16,055 in March.

The 3-month moving average for active listings in Dallas-Ft. Worth dropped in April from 4,088 versus 4,894 in March. In Houston, last month’s active listings were 7,084 versus 7,524 in March. In Austin, April was 926 versus 1,496 in March. San Antonio reported active new home listings last month were 1,898 versus 2,142 in March. (See Chart 6: Texas Active Listings and Chart A: 3-Month Moving Averages)