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Will the Housing Market Slow Down in 2021?

Will the Housing Market Slow Down in 2021?

Buyers are actively seeking all types of property. Below are the most recent reports from Texas Association of Realtors. Our local recent activity will indicate these trends to be continuing. Out of state buyers seem to lead the way while metropolitan buyers seek solitude and a simpler lifestyle. Across Texas a west coast migration is prevalent, but northern residents seeking a warmer climate trail close behind. Our local region is a haven for rural dwellers especially desiring equestrian conducive property. The relocation of in-state residents is not to be forgotten. Buyers seeking to distance themselves from growing subdivisions are seeking the lesser restrictive open spaces.

The reports from around the state
continues to be:
low inventory and high demand.

Texas home sales soar, housing inventory declines in 2020's third quarter

Texas REALTORS® releases 2020-Q3 edition of the Texas Quarterly Housing Report

October 21, 2020 Austin

The number of Texas homes sold from July to September 2020 increased nearly 19% compared to the same time frame last year, according to the 2020-Q3 Texas Quarterly Housing Report  released today by Texas REALTORS®.

"The Texas real estate market's resiliency, especially in the middle of a pandemic crisis, is nothing short of incredible, though our housing supply is still critically low," said Cindi Bulla, chairman of Texas REALTORS®. "We are hard at work looking for the supply solutions necessary to keep our market healthy and make the American dream of homeownership attainable to every Texan."

Jim Gaines, Ph.D., chief economist with the Real Estate Center at Texas A&M University, commented, "The Texas housing market experienced a strong push-through of demand from the second quarter into the third quarter. Active listings saw a sharp drop with many sellers hesitating to list their property in the middle of a pandemic. However, as the economy and employment numbers continue to recover, we anticipate end-of-year sales figures will be higher than 2019."

Active listings declined 32.4% in Q3 to 71,569 listings. Texas homes spent an average of 52 days on the market, two days more than the third quarter of 2019.

Housing inventory in Texas declined 1.3 months to 2.3 months of inventory. According to the Real Estate Center at Texas A&M University, a market balanced between supply and demand has between 6.0 and 6.5 months of inventory.

Bulla concluded, "Although our real estate market remains strong, the data in this report shows there are still long-term implications regarding this housing shortage that need answers and finding those solutions will remain a major focus for Texas REALTORS® at the state and local level for 2020 and beyond."

Data for the Texas Quarterly Housing Report is provided by the Data Relevance Project, a partnership among local REALTOR®; associations and their MLSs, and Texas REALTORS®;, with analysis by the Real Estate Center at Texas A&M University. The report provides quarterly real estate sales data for Texas and 25 metropolitan statistical areas in the state. The Texas Real Estate Year-in-Review Report in February and the Texas Real Estate Mid-Year Report in August are released in lieu of the Q2 and Q4 reports each year. To view the report in its entirety, visit texasrealestate.com.

About Texas REALTORS®;

With more than 140,000 members, Texas REALTORS®; is a professional membership organization that represents all aspects of real estate in Texas. We are the advocate for REALTORS®; and private property rights in Texas. Visit texasrealestate.com to learn more.