Texas Housing Reality in 2023: From Pandemic Boom to Market Cool-Down

The Texas housing market, once a hive of activity and soaring prices during the pandemic, is showing signs of slowing down. The once red-hot demand has cooled, with a 14.2% year-over-year drop in sales volume as of September. In major urban areas like Dallas-Fort Worth, Houston, and San Antonio, and particularly in Austin, the number of homes sold has dipped significantly compared to last year.

Prices Still Rising Amidst Slower Sales

While sales are slowing, house prices in Texas haven’t stopped climbing. The average selling price of a home in Texas now sits between $350,000 and $360,000, a record high for the state. In 2022, the median home price shot up to $340,000, a 13.3% increase from the previous year, showing that even in a cooling market, Texas homes are still a pricey investment.

A Market Finding Balance

After a long period of favoring sellers, the Texas housing market is gradually finding a new equilibrium. The cooling phase is leading to more homes on the market, giving buyers more choices and a bit more power in negotiations than they’ve had in recent years. The total number of homes sold in 2022 dropped by 11.3%, a stark contrast to the rapid sales growth seen in previous years.

Texas housing crash 2023 — The Texas housing market is shifting towards balance, offering buyers more options as home sales fell by 11.3% in 2022, contrasting with previous years’ rapid growth.

Facing the Future: Challenges and Opportunities

The Texas housing scene is at a crossroads, with its high prices and interest rates posing challenges for buyers. Yet, with a strong job market and steady population growth, the demand for homes in Texas remains high. The market, with only 2.5 months’ worth of housing supply as of last July, still leans towards sellers but is more balanced than it has been in recent times.

San antonio texas — Despite high prices and interest rates challenging buyers, Texas’ robust job market and growing population keep housing demand strong in a market leaning towards sellers but more balanced than before.

Conclusion: Texas Housing Enters a New Phase

The Texas housing market is evolving. It’s moving from its pandemic-driven frenzy to a more steady and potentially sustainable pace. Although challenges like high prices and limited supply are still present, this shift could pave the way for a healthier housing market in the long term.

Yahoo Finance: “Texas Housing Loses Its Luster After Pandemic Boom” Link
Redfin: “Texas Housing Market: House Prices & Trends” Link
The Texas Tribune: “Texas Housing Market Shows Signs of Cooling Off” Link
Texas REALTORS®: “Texas Housing Market Stabilized in 2022 after Recovering from Pandemic Shock” Link