Texas Real Estate: What’s Changed from 2018 to 2024?

Texas Real Estate: What’s Changed from 2018 to 2024?

Texas Real Estate Market Trends

Overview of Texas Real Estate Market Trends (2018-2024)

Over the past six years, the Texas residential real estate market has undergone significant transformations, with key trends emerging in housing inventory, sales volumes, days on the market, and home prices across major cities like Dallas, Houston, San Antonio, Austin, McAllen, and Brownsville.

Housing Inventory

Housing Inventory

Data Source: Zillow Research

From 2018 to 2019, major cities such as Dallas, Houston, San Antonio, and Austin experienced high inventory levels with noticeable seasonal peaks. However, these levels declined as the COVID-19 pandemic disrupted supply chains and increased demand. Austin’s inventory consistently decreased, driven by the city’s growing tech industry and rapid population growth. In contrast, McAllen and Brownsville maintained relatively stable but low inventory levels, reflecting their smaller market sizes.

Sales Volumes

Current Sales

Data Source: Zillow Research

Sales volumes in Dallas and Houston surged during the summer months of 2021, spurred by historically low interest rates and the shift towards remote work. San Antonio and Austin also displayed high sales volumes with clear seasonal patterns, indicating strong demand in a low-interest-rate environment. As interest rates began to rise at the beginning of 2022, sales volumes stabilized across these regions, reflecting shifting demand dynamics and the influence of economic activities.

Days on Market

Days on Market

Data Source: Zillow Research

Pending sales trends further highlight these market dynamics. Brownsville showed significant fluctuations in days on the market, peaking at over 120 days in 2020 and dropping below 40 days in 2021. Austin consistently recorded the lowest days on the market, reflecting its high demand and rapid sales pace. Similarly, Dallas, Houston, and San Antonio demonstrated decreasing trends in days on the market until interest rate hikes in 2022. However, these trends have been reversing into the summer of 2024, indicating slightly quicker property turnover and sustained demand in this high-interest-rate environment.

Home Prices

Home Prices in Major Cities

Data Source: Zillow Research

Home prices have surged notably across all major Texas cities. Austin experienced the most dramatic increase, fueled by its thriving tech industry and population influx. Dallas, Houston, and San Antonio saw steady price increases driven by heightened demand and economic growth. In comparison, McAllen and Brownsville experienced more gradual price hikes, indicating slower market pressure.

While interest rate increases have caused home price appreciation to slow down, these trends highlight the robust and competitive nature of the Texas real estate market. Understanding these trends requires recognizing the impacts of external shocks, such as the COVID-19 pandemic, and monetary policy changes, like interest rate adjustments. These factors illustrate the intricate interplay between macroeconomic forces and local market conditions, shaping the overall trajectory of the Texas housing market.

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