AgentIndustry News

Texas residential real estate sales up, inventory at all-time low

Projections for a strong second and third quarter could be at risk because of floods
  • Residential home sales spiked in the first quarter of 2016.
  • Inventory reached all-time low in Texas at 2.8 months.

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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 Lesl...