November 10, 2018
A shortage of homes priced below $300,000, combined with increasing interest rates, exerted downward pressure on Texas’ housing sales in Q3 2018. Metrics released by the Real Estate Center at Texas A&M University pointed to a 2.5% drop in housing sales, as affordability was hindered statewide.
On the supply side, the number of newly-developed vacant lots for homes in the $200,000-$300,000 price range increased, which also increased the number of single-family permits in all the major Texas metros. Meanwhile, homes stayed on the market an average of 60 days, while mortgage applications for purchases were steady, which spoke to the strength of demand.
The sales slowdown pulled the Texas homeownership rate below 63%, following a year-long positive stretch. Texas remained 1.5% below the national homeownership rate, with Austin coming in at the lowest rate of 56.2%.
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