Texas Home Sales Predicted to Rise 8.4 Percent in 2021

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Research Economist Dr. Luis Torres with the Texas Real Estate Research Center at Texas A&M University says, "That assumes mortgage rates remain relatively low, and the economic reopening continues as vaccines are widely distributed," he said. "Home sales would be even stronger if not for persistently low inventories."

Total Texas housing sales stabilized in November following record-setting levels the previous month. Building permits and housing starts normalized after months of strong activity.

On the other hand, average days on market fell to just 44 days, indicating steady demand as mortgage interest rates reached all-time lows.

Torres labeled the lack of housing inventory as "extreme," and said the depleted inventory contributed to double-digit annual growth in the median home sales price.

"The shortage of homes priced less than $300,000 pushed buyers toward higher-priced homes," he said. The Texas Real Estate Research Center's Repeat Sales Home Price Index also accelerated, revealing threats to recent improvements in affordability.

"Robust construction activity should provide much-needed injections into the supply of active listings, said Torres, but home-price growth should still be positive due to solid demand and limited inventory".