• Residential home sales spiked in the first quarter of 2016.
  • Inventory reached all-time low in Texas at 2.8 months.

The first quarter of 2016 disproved any forecasts of a calm period following a five-year boom in Texas residential real estate. With residential real estate sales increasing 7.8 percent to 65,265, the promise of a growing job market seems to be attracting more buyers.

Housing inventory, on the other hand, dropped to a staggering 2.8 months, which is down 0.6 months from the first quarter of 2015. This is also a historical low for Texas housing inventory. A press release from the Texas Association of Realtors stated that the Real Estate Center at Texas A&M University thinks the monthly inventory for housing is balanced when sitting between 6 and 6.5 months. As such, the decreasing inventory shows that demand is slowly but surely pushing out supply. This, coupled with the growing job market, places a strain on the Texas housing market.

Low inventory could bring trouble

“Housing inventory remains extremely limited in Texas,” Chairman of the Texas Association of Realtors Leslie Rouda Smith said in a prepared statement. “Low housing inventory combined with rising property values is making housing affordability a challenge, not just in Texas’s metro areas, but across the state. This could become a larger problem if there is not greater balance between supply and demand in the future.”

[graphiq id=”hzWR52lg1o1″ title=”Texas Real Estate Market Trends” width=”600″ height=”694″ url=”https://w.graphiq.com/w/hzWR52lg1o1″ link=”http://places.findthehome.com/l/8/Texas” link_text=”Texas Real Estate Market Trends | FindTheHome” ]

Active listings also dropped in the first quarter to 74,276, down 11.9 percent year-over-year. Homes spent an average of 64 days on the market, which is three days less than the same time last year.

The median home price, however, increased 5.4 percent year-over-year to $195,000.

If and how the Houston floods affected second quarter numbers will be an interesting situation to monitor going forward. In some states, the post-flood caused a surge in two things: Residents packed up and moved to higher ground, and developers came in to rebuild. However, disasters like floods give states an opportunity to reexamine ways to avoid future problems caused from over development.

Email Britt Chester

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription