The Texas housing market has been a topic of great interest and speculation as it experiences fluctuations and adjustments in various aspects. Here is the recent report from the Texas Real Estate Research Center at Texas A&M University which shows the Texas housing market trends for June 2023.

Despite fluctuations in the housing market, Texas continues to exhibit resilience. The shift towards new construction, rising demand for permits, and steady price gains all indicate a healthy real estate market in the Lone Star State. While challenges remain, such as high mortgage rates, the Texas housing market remains robust and adaptable.

The state's total single-family starts value reached $15.9 billion year-to-date (YTD), indicating a decline from $23.2 billion recorded in 2022. Houston and Dallas continue to account for more than half of the state's construction activity values. Dallas' share of the Texas market rose to 27.5 percent, coming close to Houston's share of 28 percent.

As mortgage rates remain elevated, homebuyer demand has decreased, leading to a drop in Texas' total home sales, which fell below 28,000 transactions in June. This represented a decline of 3.2 percent MOM and 11.8 percent year over year (YOY).

Despite the challenge of high mortgage rates and reduced housing demand, the market share of new construction sales surged. Within a year, the share of new construction sales rose from 16.3 percent to more than 20 percent, indicating every five closed listings is a new home. Both demand and supply factors contributed to the increasing trend for new homes.

Texas' average days on market (DOM) stayed at 56 for the second straight month, deviating from the steep rebounding trend observed for over a year. The current reading is merely three days short of the five-year average before 2020, which stood at 59 days.

Texas' median home prices continued to show its strength by increasing 0.3 percent to $337,900. Austin recorded the largest monthly gain of 4.2 percent, reaching a price peak in the past nine months.

The Texas Repeat Sales Home Price Index, which accounts for compositional price effects and provides a better measure of change in single-family home values, showed a slight advance of 0.3 percent MOM and 0.1 percent YOY.

Mortgage rates typically follow Treasury rates, and both increased in June. The ten-year U.S. Treasury Bond yield grew 18 basis points, reaching 3.8 percent. Likewise, the Federal Home Loan Mortgage Corporation's 30-year fixed-rate increased moderately to 6.7 percent, up 28 basis points. With the Fed resuming their increasing of interest rates in July, both the bond and the mortgage rates also grew.

Texas has had some of the strongest housing appreciation rates in the country over the past decade. Over the past decade, Texas housing prices have risen 214.12 percent, which equates to an annual home appreciation rate of 5.10 percent, according to the data collected by NeighborhoodScout. If you are a house buyer or real estate investor, Texas has been one of the finest long-term real estate investments in the United States over the past decade.

The Texas housing market has been through various shifts and adjustments, with fluctuating home values and changing market dynamics. As we look into the future, it's essential to consider the latest predictions and forecasts to gain insights into what lies ahead for homebuyers and sellers in Lone Star State.

With data from Zillow, we can gain valuable insights into the current state of the market and make predictions about its future trajectory. As of July 31, 2023, the average home value in Texas stands at $301,763, reflecting a 1.0% decrease over the past year. Homes in Texas are also selling quickly, going pending in approximately 16 days.

Here are some key statistics that provide a snapshot of the Texas housing market:

Median Sale to List Ratio (June 30, 2023): 0.997

Percent of Sales Over List Price (June 30, 2023): 27.2%

Percent of Sales Under List Price (June 30, 2023): 51.0%

Median Days to Pending (July 31, 2023): 16