July 17, 2020
For Texans, empty shelves at the supermarket aren’t the only shortage created by the pandemic. Homes are in short supply, too.
“Unless a buyer is looking for a luxury home, there are fewer to choose from,” said Dr. Jim Gaines, chief economist for the Real Estate Center at Texas A&M University. “Texas’ months of inventory fell to a historic 3.2 months in May as the state’s supply of active listings plummeted to its lowest level in three-and-a-half years.” Researchers consider a six-month inventory a balanced market.
Sales of homes priced less than $300,000 continue to be brisk, said Gaines. The Texas inventory of homes in that price range slid to an all-time low of 2.4 months, according to the Center’s latest Texas Housing Insight report. While closings for luxury homes (those priced more than $500,000) decreased, the supply of unsold higher-priced increased for the first time this year.
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