A new analysis of the statewide real estate market has revealed new home sales in Texas have slowed since September, despite a drop in average prices, and inventory is on the rise.
The September edition of the New Home Sales Report by Dallas-based platform HomesUSA.com examined MLS data across Dallas-Fort Worth, Houston, Austin, and San Antonio to determine the status of the overall real estate market.
The report found that the three-month average number of new home sales fell across all four major metros in September. Houston experienced a decline by 27 homes.
"In Houston, total new home sales dropped to 1,943 versus 1,970 in August," the report said.
Elsewhere in Texas, San Antonio saw the most dramatic decline in sales with 1,067 new homes sold in September, versus 1,100 in August. Dallas-Fort Worths' total new home sales fell by 14 homes to 1,848 in September. Austin saw the smallest decline, down just seven sales from August to 864 in September.
Home prices decreased in Houston
Three-month average prices for new homes across Texas have fallen from $432,749 in August to $429,898 in September, the report found. In a year-over-year comparison from September 2023, new home prices have plummeted almost $29,000.
Average new home prices fell in Houston, San Antonio, and Austin in September, but increased in Dallas-Fort Worth.
Here’s how home prices changed across all four major metros from August to September:
- Dallas-Fort Worth: Increased from $489,762 to $492,129
- Austin: Decreased from $494,920 to $483,408
- San Antonio: Decreased from $340,755 to $338,620
- Houston: Decreased from $402,741 to $397,318
How long on the market
The trends also show the three-month average Days on Market (DOM) — also known as the average time homes sit on the market before being sold — across all four real estate markets came out to 97.76 days in September. New homes are remaining on the market slightly longer than they were in August, when the three-month average DOM was 97.05 days.
Specifically in Houston, new homes sat on the market for 87.76 days before selling in September, in a very slight decrease from August’s DOM of 88.12 days.
New home inventory
New home inventory (the number of active listings on the market) in Texas is also on the rise. The three-month average inventory in September came out to 32,337 new listings, versus 31,893 in August. Active new home listings rose in Dallas-Fort Worth, Houston, and Austin, but decreased in San Antonio.
"Active listings in Houston last month also increased to 12,994 versus 12,812 in August," the report said.
There were 7,939 active listings in Dallas-Fort Worth, 6,019 active listings in Austin, and 5,384 in San Antonio in September.
HomesUSA.com founder Ben Caballero cited fluctuating mortgage rates as one of the main reasons why Texas’ real estate market is “showing mixed signals.”
“...But the silver lining is that sales compared to the same time last year are up 12 percent,” said Caballero.
The monthly Texas New Home Sales Report combined the four largest new home markets – Houston, Dallas-Fort Worth, Austin, and San Antonio – to determine its overall statewide data, which comprise the vast majority of new home sales in Texas.
