HomesUSA.com reports fewer Days on Market and lower prices as sales flatten
Ben Caballero, founder and CEO of HomesUSA.com
Chart 1: Texas New Homes Tracking – Days on Market – June 2024
Chart 2: Texas New Home Sales Market – June 2024
Chart 3: Texas New Home Sales Prices Market – June 2024
Chart 4: Texas Sales-to-List-Price Ratio Market – June 2024
Chart 5: Texas Pending New Home Sales Market – June 2024
Chart 6: Texas Active Listings for New Home Market (Inventory) – June 2024
Chart A: Texas 12 – Month Moving Averages Market – June 2024
DALLAS, July 24, 2024 – Texas new home sales flattened last month, but there was still good news for builders and buyers as homes sold faster and the average home price fell, according to the newest monthly Texas New Home Sales Report released today by HomesUSA.com and its founder and CEO, Ben Caballero, the nation’s top-ranked real estate agent.
The HomesUSA.com New Home Sales Report uses Multiple Listing Service data – the most comprehensive, current, and accurate information – from the Realtor Associations of North Texas, Houston, Austin, and San Antonio.
According to the statewide June MLS data, the 3-month average of new home sales in Texas was 1% lower than in May as Dallas-Ft. Worth, Houston, Austin, and San Antonio combined posted a 3-month average of 6,043 total sales in June versus 6,106 sales in May. Three of the four major new home sales markets posted either flat or slightly lower total sales. San Antonio was the exception, as new home sales last month increased to 1,079 versus 1,073 in May.
Despite being the second month in a row that Texas averaged more than 6,000 total new home sales in a single month, Caballero sees the new home sales market as “challenging,” as new home inventory continues to build and interest rates remain in the 7% range.
“While new homes sold faster in June compared to May, prices fell and total sales were flat compared to both last month and May of last year – and that is a challenge,” said Ben Caballero, America’s No. 1-ranked real estate agent and CEO and founder of HomesUSA.com.
“Pending sales, an indication of future sales year-over-year, were about 1% lower, as builders work hard to achieve balanced production to accommodate moderate demand caused by the higher mortgage rates,” he added. The average 3-month pending sales for the four largest Texas new home markets in June totaled 6,916 versus 7,081 in May.
The good news for builders: Days on Market improved significantly last month with homes selling nearly a week faster among the four leading Texas new home markets. Dallas-Ft. Worth, Houston, Austin and San Antonio reported a 3-month average for Days on Market in June of 102.94 days compared to 109.66 days in May. Cumulatively, year-over-year in these four markets, the average Days on Market are 5% lower.
Average new home prices drop
There also was good news for Texas home buyers as they paid less for a new home in June versus May, with the average 3-month price falling in all four major new home markets. Dallas-Ft. Worth, Houston, Austin and San Antonio, combined posted an average sales price in June of $436,489 versus $442,676 in May. Year-over-year, new home prices have fallen over 5%.
Active new home listings were only slightly higher in June. The 3-month average active listings inventory in Texas’ four major new home markets was 30,617 versus 29,979 in May, an increase of 2 percent, and a number that builders continue to work hard to reduce. The one silver lining in June’s new home sales numbers: year-over-year, total sales in June are up over 16% from June 2023.
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 June, set for Friday, July 26, 2024, at 10:00 am Eastern time.
The HomesUSA.com monthly report covers closed sales recorded in MLSs by the 10th day of the following month. Sales reported by agents after the 10th of the month 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 Improve Significantly – New Homes in Texas (Exclusive Data)
The HomesUSA.com New Home Sales Index showed the 3-month moving average of Days on Market (DOM) in June improved significantly in Texas’ four major new home markets. In Dallas-Ft. Worth, the DOM decreased to 123.16 days versus 134.84 days in May. Houston’s DOM was 94.68 days versus 98.15 days in May. In Austin, the DOM dropped to 90.81 days versus 93.96 days in May. In San Antonio, the DOM was 92.58 days versus 99.28 days in May. New homes have significantly higher Days on Market or DOM than existing homes because most are listed while under construction. (See Chart 1: Texas New Homes Days on Market)
Texas New Home Sales Tick Lower
Based on all local MLS data, the most reliable and current source of all home sales activity, total new home sales were lower or flat in three of the four largest new home markets in Texas last month. The June 3-month moving average of new home sales in Dallas-Ft. Worth was lower at 1,954 versus 1,986 in May. In Houston, total new home sales were flat at 2,093 for both last month and May. Austin’s new home sales last month were also lower at 917 versus 955 in May. San Antonio was the exception, as new home sales in June were higher at 1,079 versus 1,073 in May. (See Chart 2: Texas New Home Sales)
Texas New Home Prices Steadily Decrease
The average prices of new homes decreased in all four major new home markets in Texas last month. In Dallas-Ft. Worth, the 3-month moving average price for new homes in June was $482,048 versus $486,197 in May. In Houston, the average new home price in June was $409,042 versus $411,767 in May. In Austin, the 3-month moving average price decreased in June to $504,155 versus $520,281 in May. San Antonio’s average new home price was also lower in June at $349,859 versus $353,388 in May. (See Chart 3: Texas New Home Prices)
Texas Sales-to-List Price Ratio Remain Stable
Cumulative new home sales remain slightly lower than 100 percent of the asking price. The combined 3-month moving average of the sales-to-list price ratio in Texas’ four largest markets for June was 97.66 versus 97.83 percent a year ago and 97.60 percent in May this year. Dallas-Ft. Worth’s ratio in June was 97.97 versus 98.04 percent last June and 97.91 percent in May this year. In Houston, the ratio in June was 96.99 versus 98.07 percent last June and 96.91 percent in May this year. In Austin, the sales-to-price ratio in June was 97.91 versus 97.38 percent last June and 97.88 percent in May this year. San Antonio’s ratio in June was 98.21 versus 97.33 percent a year ago and 98.13 percent in May this year. (See Chart 4: Texas Sales-to-List Price Ratio)
Texas Pending New Homes Sales Decline
Based on local MLS data, the average 3-month pending new home sales fell last month in three of the four largest Texas new home markets. The combined four-market average in June totaled 6,916 versus 7,081 in May. In Dallas-Ft. Worth, pending new home sales last month were 2,382 versus 2,489 in May. In Houston, pending new home sales in June were 2,109 versus 2,188 in May. In Austin, pending new home sales in June were 1,333 versus 1,370 in May. San Antonio was the anomaly, as pending new home sales last month increased to 1,092 versus 1,033 in May. (See Chart 5: Texas Pending New Home Sales)
Texas Active Listings for New Homes Increase
Active new home listings increased in all four of the largest Texas new home markets in June. The June 3-month average active listings inventory in Texas’ four major new home markets was 30,617 new homes versus 29,979 in May. Dallas-Ft. Worth’s active listings in June increased to 7,063 versus 6,832 in May. Active listings in Houston last month also increased to 12,566 versus 12,424 in May. In Austin, active listings in June were higher at 5,909 versus 5,789 in May. In San Antonio, active listings last month were 5,079 versus 4,934 in May. (See Chart 6: Texas Active Listings)
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 Dallas-Ft. Worth, Houston, Austin, and San Antonio. Created by Ben Caballero, it is the first Days on Market index to track the Texas new home market and includes homes listed while under construction. (See Chart A: 12-Month Moving Averages)
*Note: Texas data denotes a combination of its four largest new home markets – Houston, Dallas-Ft. Worth, Austin, and San Antonio – which comprise the vast majority of new home sales and MLS data statewide.
