Evolving towards Equilibrium: Texas Residential Market Insights from 2023 Q3

The latest Quarter 3 report of 2023 by Texas Realtors brings to light an interesting transition – the Texas housing market is steering towards a more balanced zone. The shift is evident with the increased availability of homes and elongated average duration of a property’s stay on the market. This adaptation indicates that house hunters in numerous areas may now enjoy a broader spectrum of options and comparatively more time to reach a decision.

Chairman of Texas Realtors, Marcus Phipps expounds on the evolving market picture. Notably, the median sales price of homes in Texas registered a slight drop during 3Q2023, moving down from $345,000 to $340,000. Half of the home sales in this quarter were clustered within the price band of $200,000 to $399,999.

In the third quarter, properties in Texas were on the market for an average of 48 days – a marked increase from the previous year when properties sold 17 days faster. Specifically, properties in 3Q2023 took about 11 days more to sell compared to the same period in the previous year.

Inventory assessment in 3Q2023 showed a positive trend fostering this newfound market balance. The months of inventory rose to 3.7 months in 3Q2023 from 2.7 months in the same quarter last year. Remember that a market in equilibrium typically reflects six to 6.5 months of inventory.

Lastly, there was a 15.2% increase in active listings in the third quarter 2023 compared to the same period in 2022, further hinting at the looming market balance. These developing market trends serve valuable insights for prospective buyers, sellers, and real estate consultants navigating the Texas housing scene.