State real estate trends show high demand, on track with Tyler

 

Texas real estate trends are tracking with Tyler's, with both showing a high demand, declining inventories and fewer days-on-market.

"Texas home sales and prices continued to rise in the third quarter of 2015, while monthly housing inventory held steady," the Texas Association of Realtors reported on Monday.

"Overall, statewide numbers continue to be strong," said Scott Kesner, chairman of the Texas Association of Realtors. "Last year fell just short of being the best year ever in Texas real estate, but 2015 has shown consistent year-over-year gains in both home sales and prices. At this current pace, 2015 could very well surpass 2007 as a record year for Texas home sales."

Texas home sales rose 7.8 percent year-over-year to 91,704 home sales in 2015-Q3. Texas home prices saw similar gains, with median prices rising 7.7 percent year-over-year to $199,900 in the third quarter of 2015.

In Tyler, home sales rose a full 21.7 percent over the same period in 2014. Median prices rose 5.3 percent, to $171,679 for the quarter.

According to the report, monthly housing inventory in Texas was 4.0 months in the third quarter of 2015, compared to 3.9 months in the same quarter last year.

But that's a reversal of Tyler's trend, which saw monthly housing inventory decrease dramatically - from 8.0 months in the third quarter of 2014 to 4.5 months in 2015.

Deep in the report, though, is a nugget that helps explain the Tyler trend. The number of active listings in Tyler is down 10.7 percent from the third quarter of 2014.

Builders can barely keep up with demand.

Jim Gaines, Ph.D., chief economist with the Real Estate Center at Texas A&M University, explained, "The housing market continued to be strong in Texas during the third quarter, but high housing demand coupled with shortages in labor and lots continued to restrict new home construction, leaving inventory strained. Fortunately, more Texans are listing their homes on the market as prices have risen, possibly in expectation of rising interest rates in the future.

"Another strong buying season is in the record books, which is why the Texas Association of Realtors is out there advocating for infrastructure and affordability measures that support this enduring housing demand," Kesner said.

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