As the bellwether of economic situations, real estate markets offer key insights into shifts within local communities and wider economies. In the ultimate testament to this, the second quarter of 2023 saw significant fluctuations within the Texas real estate market, according to the Texas Realtors’ 2Q2023 housing report.
Among the most noteworthy changes, the median price of homes sold decreased by 3.1 percent year-over-year, settling at $345,000 from 2Q2022’s $357,388. Accompanying this was a decrease in closed sales juxtaposed by an increase in homes available for sale.
These shifts, however, were not uniform across the state. As highlighted by Texas Realtors Chairman Marcus Phipps, despite the statewide median price softening, approximately half of Texas markets actually experienced a boost in median prices. Furthermore, while average days on market increased across all metro areas, the number of available homes also saw an uptick across almost all metros.
It’s worth noting that the price distribution of sold properties also changed slightly, with the share of high-end homes ($750,000 and above) shrinking from 10 percent to 8.7 percent of total sales year-over-year. Conversely, the proportion of properties sold in the $200,000 to $399,999 price range grew from 45.8 percent to 50 percent, indicating increased activity in the mid-range property segment.
Also of note is the shift in months of inventory, which refers to how long it would take to sell all homes on the market at the current pace of sales. The second quarter saw these figures increase from 2 to 3.2 months compared to the same period last year.
These figures underscore the dynamism of the Texas real estate market and the impact various macro and microeconomic factors have on its progression. Prospective buyers, sellers, and investors should keep these trends in mind when making property-related decisions.