Texas new home market sees faster sales, higher prices

HomesUSA.com reports some builders are skipping the MLS, buyer agents

DALLAS, July 20, 2021 (GLOBE NEWSWIRE) -- Texas’s new home market remained white-hot last month, recording faster sales and higher prices as less inventory pushed total monthly sales lower statewide, HomesUSA.com reported today.

This HomesUSA.com July new homes report – covering Dallas-Ft. Worth, Houston, Austin, and San Antonio – 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.

For the 12th straight month, new homes sales set a record pace. The 3-month moving average for Days on Market (DOM) dropped to 68 days statewide, a new low for the fewest average number of days for new homes to be on the market since HomesUSA.com began tracking the data with the launch of its News Home Sales Index in 2017.

In Austin, the DOM dropped to 38 days, down from 89 days last June. The DOM for Dallas-Ft. Worth was 57 days versus 98 days last June. In San Antonio, the DOM was 61 days versus 98 days last June. The DOM for Houston was 85 days versus 109 days in June 2020.

The 3-month moving average price for a new home statewide jumped by about $1,000 to $387,312 versus $386,320 in May. Average price changes in the top four new home markets were mixed. Dallas-Ft. Worth and San Antonio both reported higher prices in June, while Austin and Houston reported lower prices.

Low inventory helped drive down Texas new home sales statewide last month to a 3-month moving average of 3,953 versus 4,413 in May. Home sales were lower in all four of the state’s major new home sales markets.

And while both pending and active new home sales also trended lower last month, Ben Caballero, owner of HomesUSA.com, points out that “the MLS numbers are not telling the true picture of what is happening.”

“Builders are using alternative sales avenues such as ‘highest and best offer’ or a lottery system,” Caballero said. “These homes sales are not reflected in the MLS because some builders are not listing them in the MLS.” Moreover, Caballero explained that some builders are not working with buyer agents and “Some builders are even posting signs that they do not offer a broker participation program at all,” Caballero said, adding, “Others are paying 1 or 2 percent agent commissions, which also is likely contributing to lower pending sales in the MLS.”

Caballero, a current Guinness World Record titleholder, notes that this new report is based on MLS listings and some builders are choosing to list fewer homes in the MLS, resulting in fewer sales reported to the local Multiple Listing Service or MLS, skewing new homes data.

The 3-month moving average showed 11,096 active new homes listed for sale statewide versus 12,389 in May 2021. A year ago, there were 23,244 active listings, a year-over-year decline of 50 percent. Three of the state’s four major new home markets reported lower active listings in June. Only Austin posted a monthly increase, with 882 active listings in June versus 791 in May. Last year in June 2020, Austin's active listings totaled 3,913, a year-over-year drop of more than 77 percent.
Texas pending sales declined last month based on MLS data. The 3-month moving average of pending sales in June was 3,513 versus 5,140 in May.

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 July, set for Monday, July 26, 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 moving average 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 all four of Texas’s major new home markets. Austin's DOM was 38.29 days in June versus 47.12 days in May. The DOM for Dallas-Ft. Worth was 57.29 days in June versus 61.03 days in May. Houston’s DOM was 84.64 days in June versus 90.11 days in May. In San Antonio, the DOM was 60.87 days in June versus 65.20 days in May. (See Chart 1: Texas New Homes Days on Market)

Texas New Home Sales Data
Total new home sales for last month declined statewide in Texas and all four major new home markets, according to the 3-month moving average. In Dallas-Ft. Worth, June sales dropped to 1,257 versus 1,396 in May. Houston sales decreased with June sales totaling 1,711 versus 1,820 in May. Austin’s June new home sales totaled 395 versus 502 in May. San Antonio also posted lower sales, with June totaling to 589 versus 695 in May. (See Chart 2: Texas New Home Sales)

Texas New Home Prices
The average price of new homes was higher statewide but mixed in Texas's four major new home markets. Austin's 3-month moving average price – the highest among the top four markets – declined to $442,691 in June versus $450,263 in May. Dallas-Ft. Worth reported its 3-month moving average price for new homes was $416,057 in June versus $414,290 in May. In Houston, the average new home price declined slightly to $378,102 in June versus $378,281 in May. San Antonio had the largest price increase, as the average new home price in June was $316,570 versus $309,852 in May. (See Chart 3: Texas New Home Prices)

Texas Sales-to-List Price Ratio
New home sales came closer to the asking price statewide and in all four major new home markets. June’s 3-month moving average of the sales-to-list price ratio statewide was 99.290 percent versus 99.121 percent in May. In Dallas-Ft. Worth, it was 99.707 percent in June versus 99.480 percent in May. In Houston, it was 98.914 percent in June versus 98.735 percent in May. The Austin ratio exceeded the asking price, registering 100.177 percent in June versus 100.167 percent in May. San Antonio's ratio was 98.896 percent last month versus 98.688 percent in May. (See Chart 4: Texas Sales-to-List Price Ratio)

Texas Pending New Homes Sales Data
New home sales activity was lower statewide and lower in Houston, Dallas-Ft. Worth, Austin, and San Antonio, all pressured by lower inventory and builder moves, resulting in fewer MLS listings. Statewide MLS data shows pending sales dropped in June to 3,513 versus 5,140 in May. Houston’s June pending sales were 1,608 versus 2,288 in May. Dallas-Ft. Worth pending sales were down last month to 1,100 vs. 1,669 in May. Austin reported pending sales in June of 307 versus 365 in May. In San Antonio, pending sales last month were 499 versus 819 in May. (See Chart 5: Texas Pending New Home Sales)

Texas Active Listings for New Homes
The 3-month moving average shows active listings fell statewide in June to 11,096 versus 12,389 in May, due to both declining inventory and fewer new homes being listed in the MLS. Austin was the exception, reporting an increase in active listings in June of 882 versus 791 in May. However, year-over-year, Austin's active listings of new homes are down over 77 percent.

The 3-month moving average for active listings in Dallas-Ft. Worth dropped in June from 2,687 versus 3,357 in May. In Houston, last month’s active listings were 6,040 versus 6,582 in May. San Antonio reported active new home listings last month were 1,487 versus 1,660 in May. (See Chart 6: Texas Active Listings and Chart A: 3-Month Moving Averages)

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 the four largest Texas markets, including Dallas-Ft. Worth, Houston, Austin, and San Antonio. Created by Ben Caballero, founder and CEO of HomesUSA.com, it is the first Days on Market index to track Texas's new home market, which includes homes listed while under construction.

About Ben Caballero and HomesUSA.com®
Ben Caballero, founder and CEO of HomesUSA.com, holds the current Guinness World Record title for "Most annual home sale transactions through MLS by an individual sell side real estate agent." Ranked by REAL Trends as America's top real estate agent for home sales since 2013, Ben is the most productive real estate agent in U.S. history. He is the only agent to exceed $1 billion in residential sales transactions in a single year, a feat first achieved in 2015 and repeated each year through 2018 when he achieved more than $2 billion. An award-winning innovator and technology pioneer, Ben works with more than 60 home builders in Dallas-Fort Worth, Houston, Austin, and San Antonio. His podcast series is available on iTunes and Google Podcasts. An infographic illustrating Ben’s sales production is here. Learn more at HomesUSA.com |Twitter: @bcaballero - @HomesUSA | Facebook: /HomesUSAdotcom.

Note for journalists: You may contact Ben Caballero directly on his cell at (214) 616-9222 or by email at ben@homesusa.com.

"REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics."

Media Contact:
Kevin Hawkins
(206) 866-1220

Image: Ben Caballero

Individual Chart images:

Chart 1: Texas New Homes Tracking - Days on Market – June 2021: https://homesusa.com/wp-content/uploads/2021/07/Chart-1-Texas-Days-on-Market.jpg

Chart 2: Texas New Home Sales – June 2021: https://homesusa.com/wp-content/uploads/2021/07/Chart-2-Texas-New-Home-Sales.jpg

Chart 3: Texas New Home Sales Prices – June 2021: https://homesusa.com/wp-content/uploads/2021/07/Chart-3-Texas-New-Home-Sales-Prices.jpg

Chart 4: Texas Sales-to-List-Price Ratio – June 2021: https://homesusa.com/wp-content/uploads/2021/07/Chart-4-Texas-Sales-to-List-Price-Ratio.jpg

Chart 5: Texas Pending New Home Sales – June 2021: https://homesusa.com/wp-content/uploads/2021/07/Chart-5-Texas-Pending-New-Home-Sales.jpg

Chart 6: Texas Active Listings for New Homes – June 2021: https://homesusa.com/wp-content/uploads/2021/07/Chart-6-Texas-Active-Listings.jpg

Chart A: Texas 3-Month Rolling Averages – New Homes – June 2021: https://homesusa.com/wp-content/uploads/2021/07/Chart-A-3MonthChart-DataOnly.jpg

Texas New Home Sales: 3-Month Moving Averages - June 2021 Chart 1: Texas New Homes: Days on Market - June 2021 Chart 2: Texas New Home Sales - June 2021 Chart 2: Texas New Home Prices - June 2021 Chart 4: Sales-to-List-Price Ratio Data for Texas New Homes - June 2021 Chart 5: Texas Pending New Homes Sales - June 2021 Chart 6: Active Listings for New Home Sales - June 2021 Ben Caballero, founder and CEO of HomesUSA.com