By Troy Corman, t2realestate.com
Source: MLS Data, Real Estate Center at Texas A&M University
The 2010 3rd Quarter Texas housing reports are in, and it's definitely a buyers' market. We'll begin by taking a look at the 3rd Quarter 2010 Dallas home sales statistics below.
In the 3rd Quarter, 9,750 Dallas homes were sold versus 13,103 Dallas homes sold in Q3 2009. That's a -25.58% decline in Dallas home sales volume. On the positive side, the median price ticked up 3.15% for Dallas homes sold in 2010 versus 2009. Median Dallas home prices were $164,700 in 2010, up from $159,700 in 2009. Months of inventory (homes for sale on MLS) increased from 6.4 months in 2009 to 7.4 months in 2010.
Houston reported 13,634 home sales in 2010 Q3 versus 17,159 sold in 2009 for a -20.54% decline. The median price of Houston homes declined to $156,200 from $158,300 in 2009. Months of inventory increased from 6.6 months to 8.1 months in 2010.
1,873 Fort Worth homes were sold in 2010 Q3 versus 2,402 homes sold in 2009 Q3 - a -22.02% decline. The median price of Fort Worth homes declined to $114,600 from $116,200 in 2009. Months of inventory of Fort Worth homes for sale was reported at 7.4 months versus 6.7 months in 2009 Q3.
Finally, even the Austin housing market has been affected by the downturn. Austin home sales for Q3 2010 declined to 4,675 from 6,156 in 2009. That's a -24.05% drop in volume. However, the median price ticked up to $200,200 in 2010 from $187,600 in 2009, or 6.71%. Months of inventory for Austin homes for sale rose from 6.7 months in 2009 to 7.3 months in 2010.
Although it's difficult to predict what will happen with the housing market in 2011, the good news for Texas is that both employers and employees continue to migrate to the Lone Star State. Due to our favorable business climate and reasonable cost of living, look for that trend to continue. As a result, I would expect Texas to be one of the first to recover from the downturn.
Also, with the large declines in home buyer volume, we'll have quite a bit of pent-up home buyer demand when buyers see clear skies ahead. That will mean more competition for home buyers and fewer "deals". Lastly, the mortgage bankers association is expecting mortgage rates to begin rising in 2011 which should induce fence-sitters to buy, as they see the monthly mortgage costs of owning a home begin to rise. It will be interesting to see what happens to our Texas markets!