The 2022-Q2 Texas Quarterly Housing Report shows a 5.6% decline of homes sold across the state for the second quarter compared to the same period in 2021, while the median price continued to rise.
The statewide median price for the second quarter of this year was $357,388, a 19.1% increase over the second quarter of last year. In the state, 108,390 homes were sold, and over half were priced between $200,000 and $399,000.
“Although home sales slightly declined, the demand for buying a Texas home was still impressive with more than 100,000 homes sold during the second quarter of 2022,” said Russell Berry, chairman of Texas Realtors. “Housing inventory levels are finally on the rise in many areas of the state — something we haven’t seen for several years — but home prices continue to rise.”
Texas’ housing supply climbed by 0.8 months to 2.1 months of inventory in the second quarter of 2022. This is the first time since the third quarter of 2019 that inventory has climbed year over year, and it is also the first time that it has exceeded two months of inventory.
Homes remained on the market for an average of 27 days before they were under a contract, five fewer days than in the second quarter of 2021.
“The rapidly rising interest rates, increases in home price, and tight housing inventory had a slowing effect on home sales in the second quarter of the year,” said Jim Gaines, an economist with the Texas Real Estate Research Center at Texas A&M University. “But the Texas housing market is still strong.”
The median price of a single-family home in the Dallas-Fort Worth metro area hit $425,000 in the second quarter, according to the report. North Texas is also experiencing a faster increase in home prices than any other Texas metro area.
But nobody is buying. People have to come up with the difference between the selling price and the appraisal price because banks will only lend what the home is appraised for. Most potential buyers don’t have that kind of money on hand so home sales are plummeting.