The Texas real estate market might be unstoppable. According the Texas Annual Housing Report just released by the Texas Association of Realtors, the market is on track to surpass 2015's record-breaking sales.
"Despite slowing job growth throughout the year and a downturn in the state’s energy sector, Texas home sales volume continues to outpace 2015 levels," notes the report, which includes insights from studies released throughout the year. "The Texas Quarterly Housing Reports released this year show that the Texas housing market is currently on pace to surpass 2015 as the highest home sales volume in the state’s history."
And who's buying all these homes? A diverse group, including first-time homebuyers, single women, and international buyers. Thirty percent of home purchases were from first-time buyers, and single women bought homes at twice the rate of single men. And, as we noted earlier this year, Texas raked in billions from international sales.
These buyers are looking for diverse properties too. Urban millennials and baby boomers contributed to the growing demand for condominiums across the state. Additionally, 30 percent of Texas homes purchased were new homes.
As in 2015, small land sales and luxury home sales were among Texas' strongest market segments this year. The highest performing segment was small land sales, with small tract sales and average price per acre experiencing double-digit growth.
Five of the six largest luxury housing markets in the state (Austin, Dallas, San Antonio, Midland, and Corpus Christi) experienced significant gains in home sales priced at $1 million and up. Only Houston saw a decrease in sales: 7.9 percent. The average price per square foot of a luxury home in Austin this year was $345 — higher than any other luxury market in Texas.
"The continued growth of the Texas housing market this year despite a slowing Texas economy has been remarkable," says Leslie Rouda Smith, chairman of the Texas Board of Realtors, in a release.
"As in 2016, housing development and affordability will remain key areas of focus throughout the state next year."