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Texas Housing Insight February 2025 Summary

April 24, 2025

by Republic Title Real Estate Articles Resources

All measurements are calculated using seasonally adjusted data, and percentage changes are calculated month-over-month, unless stated otherwise.

The Texas housing market reflected ongoing challenges in February 2025, with weak home sales a reminder of low affordability and cautious buyer behavior amid economic uncertainty. Home sales ranked among the weakest on record for a February since 2019. High mortgage rates continue to weigh on buyer affordability.

The recent jump in inventory levels are signs of lagging demand struggling to keep pace. February is the 13th consecutive month where inventory is expanding at a rapid pace of 30 percent year over year (YoY), outpacing demand. Inventory has risen to approximately 35 percent above pre-pandemic levels, shifting the market conditions in favor of buyers.

While inventory growth benefits buyers and gives them more leverage and time to make decisions, the current pace of inventory build-up is putting more downward pressure on overall home prices. Regionally, home prices in Austin continue a trajectory toward a stable bottom and the pace of decline has leveled off in recent months. Houston home prices have steadily trended upward in the past 16 months, neither accelerating nor decelerating.

Statewide, new construction has declined from the same period last year. Builder sentiment is weakening due to uncertainty surrounding material costs and potential supply-chain challenges brought on by new tariffs policies. Texas continues to lead the nation in new home construction, offering comparatively affordable housing options.

The latest consumer sentiment and bond yields highlight heightened inflation expectations and concerns of potential economic slowdown from restrictive tariffs policies. The sharp rise and volatility in 30-year mortgage rates will intensify the demand-supply imbalance as more potential buyers may choose to delay their purchase and wait out the uncertainty – not to mention many have stayed on the sidelines waiting for rates to fall.

Moderate Dip in February Home Sales

February recorded sluggish home sales, reflecting a weaker performance in the housing market and ongoing affordability challenges due to high mortgage rates.

Sources: Texas Real Estate Research Center and NAR Existing Homes Sales, retrieved from FRED

A total of 23,080 home sales (including new and existing homes) were recorded statewide, making up 9 percent of homes sales nationwide.

Monthly sales declined by 4.5 percent from February 2024 (2024 was a leap year); Year to date, sales were down 2.3 percent.

Texas home sales trends show similarities to national trends: Not adjusted for seasonality, national home sales were down 5.2% YoY in February and 1.6% YoY year-to-date.

The median sales price was $328,000, not much changed from January ($326,000) but was lower than a year ago ($332,700).

January’s monthly sales were revised upward from 1.2 percent to 2.1 percent YoY.

Home Sales at Slowest Pace Since 2016

February 2025 home sales figures rank among the weakest on record for a February since 2019, whether seasonally adjusted or not. Additional indicators, such as days on market (DoM) and inventory turnover (see Figure 1), further point to the slowest pace of home sales observed since 2016.

Source: Texas Real Estate Research Center

In Figure 1:

In February, the active inventory turnover ratio stood at 13.9 percent, or one in seven listed homes sold. This marks a decline from 20 percent (one in five) a year ago.

The average DoM reached 50 days in February, an increase from 44 days in the same period last year.

At the current pace of sales, supply exceeds demand. Before the pandemic, the market was relatively balanced, with an inventory turnover ratio of approximately 20 percent and DoM averaging 30 to 35 days.

Rising Inventory Outpaces Weak Demand

Over the past 12 months, inventory has improved significantly amid rising new listings, rebounding to near pre-pandemic levels and even exceeding them in recent months. However, when viewed with months’ supply (see Figure 2), the sharp increase in inventory is also indicative of weak demand struggling to keep up with the growing supply.

Source: Texas Real Estate Research Center

In Figure 2:

At the end of February, active inventory totaled 124,070, up 3.9 percent MoM from January and 28.6 percent YoY from February 2024.

Months’ supply in February stood at 4.4 months, an increase from 3.5 months in the same period last year.

In the relatively balanced market prior to the pandemic, months’ supply was approximately 3.5 months.

Home Prices Edge Higher at Slower Pace with Mixed Trends

Home prices have softened recently with mixed trends. High inventory has put downward pressure on home prices. Overall, home prices in Texas rose by 0.9 percent YoY, the slowest pace since November 2023.

Among the major metros, Austin continues to see downward price trends, while home prices in San Antonio have remained relatively stable, showing no clear upward trends. In Houston, home prices have maintained steady upward trends in the past 16 months, neither accelerating nor decelerating, with YoY growth consistently at about 2.5 percent. In recent months, YoY price appreciation in the Fort Worth-Arlington area has slightly exceeded that of the Dallas-Plano-Irving metro division. This can be explained by Fort Worth-Arlington’s relatively more affordable home prices that appeal to buyers seeking more value for their money.

Sources: Texas Real Estate Research Center

In Figure 3:

In February, the Fort Worth-Arlington metro division recorded the highest YoY price appreciation, with a gain of 2.7 percent.

As of February, Houston has sustained YoY price appreciation exceeding 2 percent for 16 consecutive months.

Austin’s ongoing market corrections continue to drive home prices downward. In February, the YoY price change was -1.4 percent, following a 1.7 percent drop in January.

Local Housing Market Indicators

February 2025 Homes Sales

Source: Texas Real Estate Research Center

February 2024 Inventory Velocity

Source: Texas Real Estate Research Center

New Construction (Building Permits), Year-to-Date

Note: Texarkana, Victoria, and Eagle Pass have few building permits authorized and are not reported.
Source: U.S. Census Bureau

Texas Housing Insight January 2025 Summary

April 7, 2025

by Republic Title Real Estate Articles Stats

All measurements are calculated using seasonally adjusted data, and percentage changes are calculated month-over-month, unless stated otherwise.

The latest housing data show conditions have shifted in favor of homebuyers as the spring homebuying gets underway. In particular, the housing inventory has been building up for some time now and reached levels not seen in a long time. The supply of new listings coming to the market has accelerated in recent months, partly because new construction has ramped up at a record pace during 2024. Economic uncertainty, persistent inflation, and global trade tensions are prompting increased market-timing and profit-taking activity by buyers and sellers.

Home sales pace has slowed in recent months, as reflected in rising days on the market and declining inventory turnover ratio. Year-over-year (YoY) home sales were up in January, driven primarily by a more active market for higher-end homes. Market liquidity for lower-priced homes remains constrained by high mortgage rates.

In 2024, new housing starts registered the highest annual growth in a decade, even outpacing the peak of the pandemic housing boom in 2021. That momentum has carried over into 2025.

Home prices are rising steadily and slowly. The large inventory build-up and the record number of new constructions that are underway will continue to put downward pressure on home prices.

In the near term, mortgage rates will remain in the mid-6 percent range with some narrow fluctuations. In the absence of meaningful improvement in mortgage rates, housing affordability will continue to remain a challenge. The Federal Reserve has taken a wait-and-see approach to future interest rate decisions. A decline in the job market and broad economic conditions will likely be necessary for an interest rate reduction to take place.

Home Sales in January Pulled Back Under Rising Mortgage Rates

Before heading into 2025, particularly in the fourth quarter of 2024, home sales were rising quickly. But the strong upward momentum subsided as mortgage rates moved higher following the Federal Reserve’s December rate cut, amid concerns of inflation re-acceleration.

In January 2025, statewide home sales of new and existing homes were at a seasonally adjusted annual rate of 343,240, up by 1.2 percent from the same period a year ago. Nationally, the National Association of Realtors (NAR) reported a 2 percent YoY rise in existing home sales. Statewide median home price was $328,000, up slightly from a year ago at $325,000.

Sources: Texas Real Estate Research Center and National Association of Realtors

Sales of Low-to-Moderate Income Homes Lagged High-End Homes

The pullback in homes sales is more evident among lower-priced homes. In January, sales declined 2.8 percent YoY among homes priced between $250,000 and $350,000. Sales were relatively flat among homes priced below $250,000.

In contrast, sales in the high-end market (more than $750,000) rose 9.4 percent in January, followed by a modest 3.7 percent for homes priced between $500,000 and $750,000. The uneven pace of sales growth was also evident at the tail end of 2024. During 4Q2024, the high-end market was the most active and the bottom-tier the weakest. The mid- to upper-tier homes fell in between.

Source: Texas Real Estate Research Center

Inventory at Decade-High, Home Sales at Decade-Low Pace

The supply of new listings has accelerated in recent months, expanding active inventory to levels not seen in a decade. The end of January saw 120,100 active listings, up nearly 30 percent YoY. Months’ supply climbed to about 4.5 months, the highest in a decade and above pre-pandemic levels. Prior to the pandemic, months’ supply fluctuated near 3.5 months while active listings sat around 100,000.

Source: Texas Real Estate Research Center

A total of 46,410 new listings hit the market in January, a 17.3 percent YoY increase. In the preceding 12 months, the momentum has built up rapidly, where new listings surged at about 13 percent each month, something not seen for a long time.

Source: Texas Real Estate Research Center

Homes stayed on the market a median of 51 days in January, up eight days from the year before. Home sales pace, measured alternatively as the rate of inventory turnover, has dropped to levels not seen since 2016 and was below what normally fluctuated in a relatively balanced market. Before the pandemic, about one in five homes (20 percent) were typically sold during the month. In the last 13 months (including January 2025), the rate of inventory depletions averaged at about 15 percent.

Source: Texas Real Estate Research Center

New Housing Starts Continue to Post Strong Growth

Since the pandemic, Texas has experienced a surge in new-home construction as the state’s robust economy, friendly business environment, job opportunities, and affordable housing costs have attracted businesses and new residents. In January, single-family home starts were at a seasonally adjusted annual rate of 165,050, up 10.9 percent YoY. Housing starts were down seasonally by 5.6 percent from December 2024. Texas accounts for 16.6 percent of the nation’s total new home starts.

Sources: Texas Real Estate Research Center and U.S. Census Bureau

After a two-year setback triggered by the Fed’s monetary tightening and interest rate hikes, new home starts came roared back in 2024. Between 2023 and 2024, they jumped 24.7 percent, the largest rise seen in a decade and outpacing what was recorded at the peak of the pandemic housing boom. As the spring homebuying season gets underway, buyers can expect an influx of new homes entering the market.

Sources: Texas Real Estate Research Center and Dodge Construction Network

Home Prices Rising, Slowly and Steadily

Statewide, home prices are rising slowly and steadily. In January, the TRERC Home Price Index (HPI) recorded a 1.7 percent YoY increase, slightly smaller than in the previous two months. Nationally, the average home price appreciation captured by the S&P CoreLogic Case-Shiller HPI was at a faster rate of 3.9 percent. The Case-Shiller 20-City Composite HPI measures home price trends in the country’s largest and most densely populated cities (including Dallas, the only Texas city in the index), so it’s no surprise that the index’s annual home price appreciation rate typically outpaces Texas’ statewide rate. TRERC’s HPI is based on all geographic transactions, rural or urban, in the state of Texas.

Sources: Texas Real Estate Research Center and FRED Economic Data

Metro Housing Benchmarks

January 2025 Homes Sales, Ordered by Year-Over-Year Change

Source: Texas Real Estate Research Center

January 2025 Inventory Velocity, Ordered by Year-Over-Year Change

Source: Texas Real Estate Research Center

New Construction Growth 2015-24, Ordered by One-Year Growth

Source: Texas Real Estate Research Center

Home Price Appreciation for Select MSA and MSA Divisions

Source: Texas Real Estate Research Center

Source for article: Texas Housing Insight | January 2025 | Texas Real Estate Research Center By Yanling Mayer, Joshua Roberson, and Junqing Wu

Texas Housing Insight December 2024 Summary

March 18, 2025

by Republic Title Real Estate Articles Resources Stats

All measurements are calculated using seasonally adjusted data, and percentage changes are calculated month-over-month, unless stated otherwise.

In a sign of stabilization, Texas’ home sales rose significantly in December to deliver a strong fourth-quarter finish going into 2025. Rising sales were seen broadly across all major markets (Austin, Dallas-Fort Worth, Houston, and San Antonio) as well as in smaller markets outside the Big Four. 4Q2024 marks the first time since the beginning of the housing recession that home sales rebounded strongly to end the year with double-digit year-over-year (YoY) growth.

Home prices remained steady and ended the year higher than a year ago. Positive year-end trends also captured rising new listings and rising inventory amid strong fourth-quarter sales momentum. Mortgage rates remained high going into 2025 despite a third round of interest rate cuts by the Federal Reserve in December. Mortgage rates are likely to stay near where they are during persisting signs of market jitters over inflationary pressure.

December’s Seasonality: Small Market Sales Up, Big Four Sales Down

In most years, sales rebound in December after a weak November, and this year is not any different. What was different was that December’s seasonal rebound was driven by strong sales in markets outside the Big Four. Statewide, there were 28,868 home sales in December, up 1.6 percent from November. In the major metros, aggregate sales volume (19,066) declined by 9.4 percent, driven by a 21 percent drop in DFW and a 4.9 percent drop in Houston. Sales were up 4.9 percent in Austin and 0.5 percent San Antonio. Outside the major markets, total home sales (9,802) surged 33.5 percent from November (Table 1).

First Positive YoY Sales Since 2022

Total statewide home purchases were up 10.7 percent from a year ago, marking the first time since the 2022 housing recession that sales volumes came in higher than the year before. These strong fourth-quarter sales were broadly seen across various markets. In the Big Four, was Austin saw 7.6 percent sales growth, DFW 16.4 percent, Houston 16.5 percent, and San Antonio 8.2 percent. Home sales were up an average of 6.7 percent in smaller markets.

Positive Trends in New Listings and Inventory

Statewide new listings were up slightly in December on a month-over-month (MoM) basis. Among the Big Four, new listings rose 2.7 percent in Austin, 2.6 percent in San Antonio, and 1.6 percent in Dallas, but declined in Houston by 2.4 percent. On a YoY basis, new listings were up 7.6 percent statewide, 7 percent in Austin, 10.8 percent in DFW, 14.9 percent in Houston, and 8.4 percent in San Antonio.

During December, statewide average days on market (DoM) was 63 days, comparable to the pre-pandemic turnover pace. Average DoM was 58 days in DFW, 77 days in Austin, 53 days in Houston, and 75 days in San Antonio.

At year-end, statewide active listings totaled 123,364, slightly lower than the previous month. Austin’s MoM decline (12.3 percent) was its slowest pace of MoM decline for a December since 2021. Active listings were down slightly in San Antonio (1.5 percent) and DFW (1.4 percent). Houston’s active listings were relatively unchanged in December.

Interest Rates Remain High During Inflation Concerns

In December, the average yield on the ten-year U.S. Treasury bond increased by 3 basis points to 4.39 percent despite the Fed cutting its policy rate target by another 25 basis points. Inflation has remained persistently above the Fed’s 2 percent target, and the December Consumer Price Index (CPI) data showed signs of re-acceleration. The Freddie Mac Primary Mortgage Market Survey’s 30-year fixed-rate mortgage ended December at 6.85 percent, up 16 basis points higher than at the start of the month.

New-Home Starts Increased

Statewide, building permits increased a sharp 17.7 percent MoM in December. Newly authorized permits surged 24.7 percent in DFW, while Houston and San Antonio maintained a modest upward trend, rising 5.8 percent and 2.5 percent, respectively. Building permits were relatively flat in Austin, down 1.7 percent.

Seasonally adjusted statewide single-family starts increased 9 percent MoM to 14,207 units. Houston and DFW had the highest increases at 14.4 percent (4,491) and 11.6 percent (3,670), respectively. New housing starts were up 8.4 percent (1,567) in Austin. Despite a small positive increase in building permits, San Antonio’s new single-family starts (802) dropped 14.8 from the previous month.

The state’s total value of single-family starts climbed from $29.8 billion in December 2023 to $40 billion in December 2024.

Texas HPI Up 2.1 Percent

Texas’ median sales price was $335,971 in December, a 0.3 percent MoM drop (Table 2). San Antonio was up 4 percent to $314,621, Austin 3.5 percent to $454,916, DFW 0.9 percent to $404,813, and Houston 0.7 percent to $334,930.

The Texas Repeat Sales Home Price Index, which more accurately captures home price change over time than median sales price, fell 0.1 percent month over month in December but increased 2.1 percent from a year ago.

Source: Texas Housing Insight | December 2024 | Texas Real Estate Research Center – By Yanling Mayer, Joshua Roberson, and Junqing Wu

Texas Housing Insight November 2024 Summary

February 28, 2025

by Republic Title Real Estate Articles Resources Stats

November 2024 data dashboard with the following metrics: a 2.2% decrease in total home sales, $336,838 in median home price, a 6.81% increase in mortgage rates, and a 8.9% increase in single-family starts.

Home sales typically cool off by October following the busy summer homebuying months. This year is a little different as sales in both September and October came in higher than they did during the summer. With the sales momentum extending into early fall, November total home sales took an expected seasonal downturn. Housing inventory is on the rise as homes take longer to sell. This more than offsets a decline in new listings (a decline that reflects a more cautious stance among prospective sellers amid higher mortgage rates). Home prices, in the meantime, have remained relatively the same. Interest rates increased for the first time since spring 2024, defying the Federal Reserve’s second interest rate cut on Nov. 7. New single-family construction slowed down in November. Smaller markets outside the “Big Four” metros led the declines in privately-owned housing units authorized by building permits.

Sales Decrease, New Listings Follow

November home sales came in 2.2 percent lower than the previous month at a total of 28,399 transactions, driven largely by a seasonal contraction in the Houston market, where sales dropped 10.7 percent to 7,153. Austin followed with a 3.9 percent decline to 2,454 total sales. Sales were up 1.2 percent in San Antonio, totaling 3,003 transactions, while sales in Dallas remained relatively stable, edging up by 0.7 percent to 8,445 transactions.

Table 1. Home Sales Volume containing data for October, November and MOM Change for San-Antonio-New Braunfels, Houston-Pasadena-The Woodlands, Texas, Austin-Round Rock-San Marcos, and Dallas-Fort Worth-Arlington

November’s new listings saw a notable decline, reflecting a more cautious stance among prospective sellers amid higher mortgage rates and a seasonal market slowdown. Among the Big Four, Dallas had the most significant month-over-month (MoM) drop, down 8 percent to 11,353 active listing at the end of November. Houston followed with a 3.5 percent decrease (14,022), while San Antonio and Austin recorded more moderate declines of 1.3 percent (4,338) and 1.2 percent (3,742), respectively. The overall contraction in new listings may indicate sellers are adjusting expectations in response to mortgage rates defying the Fed’s interest rate cuts. Following the Fed’s second interest rate cut in November, mortgages rates moved in the opposite direction.

Statewide average days on market (DOM) edged up by one day to 62 days in November. In Austin, DOM was up from 73 to 75 days. DOM was up by one day in Houston (52) and Dallas (57). San Antonio was the only major metro to see a decrease in DOM, improving from 74 to 73 days, a reflection of increased buyer activity and more competitive pricing in the region.

Statewide housing inventory was up in November. Total active listings increased by 1.1 percent to an inventory of 124,195 by the end of the month. Among the Big Four, San Antonio and Houston saw inventory rising by 2 percent and 1.8 percent to a month-end inventory of 13,939 and 30,553, respectively. Dallas’ housing inventory remained relatively stable, edging up by just 0.2 percent. In Austin, active listings declined 0.8 percent from the previous month to 10,501 by the end of November.

Statewide pending listings increased in November by 2.2 percent, rising from 28,340 to 28,971. Across the Big Four, pending listings exhibited mixed trends, reflecting varying levels of buyer activity. Austin led with a 7.9 percent increase, rising from 2,644 to 2,852, suggesting a rebound in buyer interest despite broader market conditions. Houston saw pending listings up 6 percent for a total of 7,770. Pending listings declined in Dallas, down 4.6 percent from 8,491 to 8,101. San Antonio saw a more moderate decline of 2.1 percent, with pending listings decreasing from 3,095 to 3,029.

Interest Rates Up Again

In November, both Treasury yields and mortgage rates experienced notable increases, defying the Fed’s second interest rate cut on Nov. 7. The average yield on the 10-year U.S. Treasury Bond rose by 26 basis points (bps) to 4.36 percent, reflecting heightened capital market expectations of inflationary pressures building up in the economy. Similarly, the Federal Home Loan Mortgage Corporation’s 30-year fixed-rate mortgage climbed 38 bps to 6.81 percent.

New-Home Starts Decline

Statewide building permits declined by 10.5 percent from October to November. The declines were led by smaller markets, where November’s privately-owned housing units authorized by building permits were 37.8 percent below October’s. In the Big Four metros, the declines were more moderate: Dallas (9.7 percent), Austin (7.1 percent), Houston (6.7 percent), and San Antonio (5.1 percent).

Seasonally adjusted statewide single-family housing starts decreased by 8.9 percent since October to 13,037 units. All Big Four metros had a downturn. San Antonio and Dallas had the sharpest decrease at 18.9 percent (941) and 13.4 percent (3,289), respectively. Houston was down by 9 percent (3,925), while Austin fell 7.4 percent (1,445).

The total value of single-family housing starts climbed from $27.73 billion in November 2023 to $34.51 billion in November 2024. At $12.14 billion, Houston accounted for 35.2 percent of the state’s total starts value. Dallas followed with $9.39 billion (27.2 percent).

Home Prices Remain Steady

Texas’ median home price remained relatively stable in November, inching down by 0.1 percent from $336,428 in October to $336,838. Among the Big Four, Houston had the most significant decline, with prices falling 2 percent from $339,079 to $332,298. San Antonio followed with a 0.7 percent decrease, from $304,564 to $302,398. Dallas only saw a marginal 0.1 percent decrease from $402,046 to $401,744, indicating relative price stability. Austin recorded the highest price appreciation, rising 0.5 percent MoM to $436,142 amid strong pending listing activities.

Table 2. Median Housing Prices containing data for October, November and MOM Change for Dallas-Forth Worth-Arlington, Austin-Round Rock-San Marcos, San Antonio-New Braunfels, Texas, and Houston-Pasadena-The Woodlands.

The Texas Repeat Sales Home Price Index (Jan 2005=100), which is a more accurate reflection of home price changes, fell 0.4 percent MoM in November but was up by 2 percent year over year (YoY). Austin’s annual appreciation remains below the state’s average and fell by 0.8 percent YoY in November.

*All measurements are calculated using seasonally adjusted data, and percentage changes are calculated month-over-month, unless stated otherwise.

Source: Texas Housing Insight | Texas Real Estate Research Center (By Yanling Mayer, Joshua Roberson, and Junqing Wu – February 24, 2025)

7-Reasons-homebuyers-need-Title-Insurance

7 Reasons Why Every Homebuyer Needs Owner’s Title Insurance

January 22, 2025

by Republic Title Real Estate Articles Resources Title Information

BUYING A HOME IS AN EXCITING AND EMOTIONAL TIME FOR MANY PEOPLE. TO HELP YOU BUY YOUR HOME WITH MORE CONFIDENCE, MAKE SURE YOU GET OWNER’S TITLE INSURANCE. HERE’S WHY IT’S SO IMPORTANT FOR YOU:

PROTECTS YOUR LARGEST INVESTMENT
A home is probably the single largest investment you will make in your life. You insure everything else that’s valuable to you—your life, car, health, pets, etc., so why not your largest investment? For a one-time fee, owner’s title insurance protects your property rights for as long as you own your home.
REDUCES YOUR RISK
If you’re buying a home, there are many hidden issues that may pop up only after you purchase your home. Getting an owner’s title insurance policy is the best way to protect yourself from unforeseen title discrepancies. Don’t think it will
happen to you? Think again.
Title claims can include:
– outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes
– pending legal action against the property that could affect you
– an unknown heir of a previous owner who is claiming ownership of the property
– boundary disputes, fraud and forgery, clerical and filing errors and more.
YOU CAN’T BEAT THE VALUE
Owner’s title insurance is a one-time fee that’s very low relative to the value it provides. It typically costs around 0.5% of the home’s purchase price.
COVERS YOUR HEIRS
As long as you or your heirs own your home, owner’s title insurance protects your property rights.
NOTHING COMPARES
Homeowners insurance and warranties protect only the structure and belongings of your home. Getting owner’s title insurance ensures your property rights are protected.
8 IN 10 HOMEOWNERS AGREE
Each year, more than 80% of America’s homebuyers choose to get owner’s title insurance.
PEACE OF MIND
If you’re buying a home, owner’s title insurance lets you rest assured, knowing that you’re protected from inheriting possible debts or legal problems, once you’ve closed on your new home.

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Texas Housing Insight October 2024 Summary

January 15, 2025

by Republic Title Real Estate Articles Resources Stats

All measurements are calculated using seasonally adjusted data, and percentage changes are calculated month-over-month, unless stated otherwise.

October 2024 data dashboard: Total Home Sales +8.8%, Median Home Price $335,773, Mortgage Rates 6.4%, Single-Family Starts 8.7%

Home sales typically cool off by October, but this year is a little different with sales in both September and October higher than they were during the summer. The rate of new listings is still on the rise resulting in rising inventory levels. Home prices, on the other hand, have remained the same. Interest rates increased for the first time since spring 2024. Finally, new-home permits were flat this month, but housing starts made a strong month-over-month (MOM) push.

Sales Increase, New Listings follow

Unlike most years when sales activity is high in July and August and low in the last quarter, 2024 showed the opposite. Sales dipped in August and increased in October by 8.8 percent (28,859) (Table 1). San Antonio had the highest sales increase, reaching almost 17 percent (2,906), followed by Houston with 12 percent (8,066) and Austin at 7 percent (2,488). Dallas was the only city among the Big Four to see a decline in sales (1 percent, or 7,432).

Table 1. Home Sales Volume containing data for September, October and MOM Change for San-Antonio-New Braunfels, Houston-Pasadena-The Woodlands, Texas, Austin-Round Rock-San Marcos, and Dallas-Fort Worth-Arlington

New listings have been increasing since July 2024 and continued to increase in October. Among the Big Four, Houston and San Antonio experienced MOM increases of 10.3 percent (14,627) and 8.6 percent (4,447), respectively. San Antonio has been almost at a vertical incline since mid 2024. Dallas and Austin grew by 7.3 percent (12,063) and 5 percent (3,774), respectively.

The state’s average days on market (DOM) fell to 61 days in October, a two-day drop. Houston had the largest decrease—from 53 to 50 days, a 4.3 percent decrease. Austin also fell from 73 days to 71 days, a 3.3 percent decrease, followed by San Antonio, which went from 74 days to 73 days, a 2.1 percent decrease. Dallas was the only Big Four city to see an increase in DOM—from 54 to 56 days, a 4 percent increase.

Texas’ number of active listings increased from 122,192 to 124,663 (2 percent). There has been no significant activity in October across the Big Four. Houston increased by 2.4 percent (30,345) followed by Dallas at 1.8 percent (28,704). Austin had a 0.6 percent decrease in active listings (28,704), while San Antonio had almost no activity, remaining at 14,000 listings.

Statewide pending listings have decreased from 29,006 to 28,516, a 1.7 percent overall drop. Dallas saw a 5.4 percent increase in pending listings, from 7,717 to 8,133, followed by Austin at 2.4 percent (2,565). Dallas has been consistently increasing since August 2024. Houston rose by 2 percent (7,577), while San Antonio fell by 0.6 percent (2,854).

Interest Rates Bounce Back

Treasury and mortgage rates both increased in October with the average ten-year U.S. Treasury Bondyield up by 38 basis points, reaching 4.1 percent. The Federal Home Loan Mortgage Corporation’s 30-year fixed-rate rose by 25 basis points to 6.43 percent. October was the first month of increase for both rates since spring 2024. Additionally, both rates have increased even as the federal funds rate has continued to drop.

New-Home Starts Rally

Statewide, building permits increased by 0.9 percent MOM in October. Except for Dallas, the Big Four had an upward trend with Austin at 17.7 percent, San Antonio at 7.6 percent, and Houston at 1.6 percent. Dallas fell by 8.6 percent.

Seasonally adjusted statewide single-family starts increased 8.7 percent MOM to 14,332 units. Most of the Big Four had an uptick. San Antonio and Dallas had the highest increases at 30.3 percent (1,164) and 25.6 percent (3,813), respectively. Austin was up by 1.5 percent (1,555), while Houston fell 0.7 percent (4,393).

The state’s total value of single-family starts climbed from $25.4 billion in October 2023 to $32.07 billion in October 2024. Houston accounted for 35.3 percent of the state’s total starts value, followed by Dallas with 27.2 percent.

Home Prices Remain Steady

Texas’ median home price didn’t change in October, remaining at $335,000 (Table 2). Dallas grew the most—3 percent, from $393,340 to $404,995. Austin followed at 1.8 percent ($430,304 to $437,835). San Antonio rose by 0.3 percent, an increase slightly above $1,000, and currently stands at $306,624. Houston fell 0.1 percent to $337,852.

Table 2. Median Housing Prices containing data for September, October, MOM Change for Dallas-Forth Worth-Arlington, Austin-Round Rock-San Marcos, San Antonio-New Braunfels, Texas, and Houston-Pasadena-The Woodlands.

The Texas Repeat Sales Home Price Index (Jan 2005=100), which is a more accurate reflection of home price changes, fell 0.3 percent MOM in October but increased 1.6 percent year over year (YOY). Austin’s annual appreciation remains below the state’s average and fell by 1.5 percent YOY in October.

Source: Texas Housing Insight | Texas Real Estate Research Center (By Joshua Roberson, Rhutu Kallur, and Junqing Wu – January 13, 2025)

Sold house sign in Midwest suburban setting. Focus on sign.

What You Should Know About Buying a House in 2025

January 9, 2025

by Republic Title Real Estate Articles Title Information

As we welcome 2025, the North Texas real estate market is shaping up to be one of the best in the country. Ranked No. 1 for real estate investment in the Urban Land Institute’s annual Emerging Trends in Real Estate forecast, DFW continues to attract attention for its stability, affordability, job growth, and economic diversity. With several years as a top contender in this report, it’s no surprise that investors and homebuyers alike are keeping a close eye on the region. And if you are in the market to buy or sell a home this year, Republic Title is here to make your real estate transactions as smooth and successful as possible.

The Bigger Picture: A Balanced Market

DFW is one of the fastest-growing metro areas in the country, now home to more than 8 million people, according to the latest census estimates.

After several years of extreme market activity, the real estate landscape in North Texas is shifting to a more balanced, buyer-friendly environment.

Home prices across the metro area have remained mostly flat over the past year, and forecasts suggest this trend will likely continue into 2025.

One of the most significant developments for the housing market in 2024 has been the increase in inventory levels. According to Realtor.com’s September 2024 housing market report, active real estate listings in the DFW area surged by 50% year-over-year. This surge provides a much-needed boost to housing supply, giving homebuyers more options and greater negotiating power.

Pent-Up Demand from First-Time Buyers

A significant pent-up demand exists among young buyers and first-time homebuyers. In 2024, only 24% of homebuyers were first-time purchasers, a notable decline from previous years. Many younger buyers have been waiting on the sidelines due to high mortgage rates, limited inventory, and escalating home prices. However, as the market stabilizes, these buyers are expected to reenter in 2025, contributing to increased demand.

Price Reductions and Negotiating Leverage

Data from Redfin and other sources show that up to 40% of homes listed for sale in the DFW area have undergone a price reduction in recent months. The frequency of these price cuts has steadily increased since the start of 2024, signaling two key market shifts:

Sellers are becoming more flexible when pricing their homes.
Buyers have more negotiating power than they have in recent years.

This is a stark contrast to the market conditions seen in the post-pandemic housing frenzy, where bidding wars and skyrocketing prices left buyers scrambling. In 2025, buyers can approach the market with confidence, knowing they have more room to negotiate and less pressure to make hasty decisions.

Mortgage Rates: The New Normal

One of the most critical factors influencing home affordability is mortgage rates. Recent reports indicate that the Federal Reserve may implement fewer cuts to the federal funds rate than initially anticipated, focusing on maintaining stability in the economy. However, mortgage rates are expected to remain steady around 6%, reflecting the “new normal” for borrowing costs.

For buyers who have been sidelined by rising borrowing costs in recent years, the slight stabilization of rates, combined with stable home prices, makes homeownership more accessible and attractive heading into 2025.

Why DFW Continues to Shine

DFW’s appeal extends far beyond real estate. Its growing economy, favorable cost of living, and thriving job market make it a magnet for businesses and families. Industries like technology, logistics, healthcare, and finance continue to expand, attracting talent from across the country. This sustained population and job growth underpin the housing market’s resilience, ensuring demand for homes remains steady.

Furthermore, North Texas’ affordability relative to other major U.S. markets remains a significant advantage. Despite rising costs in recent years, DFW offers a quality of life and value that’s difficult to match in cities like Los Angeles, New York, or San Francisco. This affordability factor keeps DFW attractive to first-time buyers, move-up buyers, and real estate investors alike.

Key Predictions for 2025

Given the trends we’re seeing today, the following forecasts highlight what we can expect from the DFW real estate market in 2025:

Stable Home Prices: Home values are likely to remain flat or experience only modest gains, providing a balanced environment for buyers and sellers.
Increased Inventory: The supply of homes will continue to rise, giving buyers more choices and reducing competition.
Pent-Up Demand: More young and first-time buyers are expected to reenter the market, boosting activity and demand.
Mortgage Rates Around 6%: While federal funds rate cuts are anticipated, mortgage rates will likely stabilize at this new normal.
Buyer-Friendly Market: With sellers showing increased flexibility and price reductions becoming more common, buyers will have more negotiating power than they’ve had in years.

The North Texas real estate market remains a leader in 2025, offering stability, affordability, and opportunities for both buyers and investors. With increased inventory, pent-up demand, and a return to a more balanced market, the conditions are ripe for buyers to take advantage of this moment. If you’re looking to buy or sell in 2025, Republic Title would love to work with you. As your trusted title partner in North Texas, Republic Title is committed to making your real estate transactions smooth, efficient, and successful. Contact them today to learn how they can help you navigate this exciting market. Happy New Year!

Source: Republic Title Boils Down What You Should Know About Buying a House in 2025 – CandysDirt.com

2025 TREC Contract Changes – Important Things You Need to Know & Highlights of the Changes

December 16, 2024

by Republic Title Real Estate Articles Resources

On November 4, 2024 the Texas Real Estate Commission adopted form revisions recommended by the Texas Real Estate Broker-Lawyer Committee. “The updated Condominium Resale Certificate (TREC No. 32-5) is a voluntary-use form. All remaining contract forms adopted by reference are available for voluntary use until January 3, 2025, when their use becomes mandatory.”

THE FOLLOWING FORMS HAVE BEEN UPDATED/CHANGED:

Purchase Contracts:

Addendum & Amendments:

Other:

Condominium Resale Certificate (TREC No. 32-5)

HIGHLIGHTS OF THE 2025 TREC CONTRACT CHANGES

T-47 & T-47.1

Which Form(s) and Section(s)?

Unimproved Property Contract (TREC 9-17), One to Four Family Residential Contract (Resale) (TREC 20-18), New Home Contract (Completed Construction) (TREC 24-19), Farm and Ranch Contract (TREC 25-16)Paragraph 6C

What’s changed?

To be consistent with a recently updated Texas Department of Insurance procedural rule, Paragraph 6C(1) is amended to include the option of providing the T-47.1 Declaration (which does not need to be notarized)—in lieu of the T-47 Affidavit—when the Seller furnishes the Buyer an existing survey. In lieu of providing a “no survey required” option, Paragraph 6C(2) is amended to read “Buyer may obtain a new survey” instead of “Buyer shall obtain a new survey”, and adds that if the Buyer ultimately fails to obtain the survey, the Buyer does not have the right to terminate the contract under Paragraph 2B of the Third Party Financing Addendum because the survey was not obtained.

Mold Remediation Certificate

Which Form(s) and Section(s)?

Most Contract Forms including One to Four Family Residential Contract (Resale) (TREC 20-18), Paragraph 6E

What’s changed?

Because Texas law requires a seller to provide a buyer a copy of any mold remediation certificate issued during the five years preceding the sale of the property, new Paragraph 6E(11) is added to provide information regarding this requirement (except in the Unimproved Property Contract).

Termination due to lack of Buyer Approval for Third Party Financing

Which Form(s) and Section(s)?

Third Party Financing Addendum Paragraph 2A
What’s Changed?

In the Third Party Financing Addendum, to ensure the buyer is terminating appropriately, Paragraph 2A, Buyer Approval, has been changed to require both a notice of termination and a copy of a written statement of the lender’s determination like in Paragraph 2B, Property Approval.

Option and Earnest Money in a Back-Up Contract

Which Form(s) and Section(s)?

Addendum for “Back-Up” Contract, Additional language added in Sections A thru F.

What’s Changed?

The Addendum for “Back-Up” Contract is modified to provide more clarity on the timing and payment of the earnest money and option fee by incorporating similar language from Paragraph 5 of the contract and by addressing timing and payment of additional fees.

Visit the TREC website for all the updated forms, listed changes and red-lined versions:

https://www.trec.texas.gov/article/trec-form-changes-effective-january-3-2025

For a PDF download of these changes in a printer-friendly format, click here.

Selling an Estate After a Death

December 11, 2024

by Republic Title Real Estate Articles Resources Title Information

Selling a property out of an estate after an owner has passed away can be a complex and emotional process. For many, it’s a first-time experience that comes with a steep learning curve. This guide will help clarify common misconceptions, address frequent complaints, and explain the key steps to ensure a smooth transaction. Whether you’re navigating affidavits of heirship, probate proceedings, or trust documentation, Republic Title is here to support you. As the preferred title partner in North Texas, Republic Title provides the expertise and responsiveness needed to guide you through even the most complicated real estate transactions.

Key Terminology to Understand

Power of Attorney (POA): A legal document granting authority to act on someone else’s behalf. Not valid after death.

Affidavit of Heirship: A sworn statement identifying heirs when no will exists or a will is not probated, often used to transfer ownership.

Probate: A legal process to give a will legal effect and aid in the distribution of assets. Necessary to confirm the executor’s authority to sell.

Trusts: A legal arrangement that is often used in estate planning to help avoid probate and simplify sales of property after a death. Title is held by a trustee for the benefit of the trust beneficiaries and the powers of the trustee are defined in the trust document.

Executor: A person named in the will who is given authority by a probate court to manage the estate and sell property.

Administrator: A person appointed by the court to manage an estate when there is no will, or a named executor is not willing or able to serve.

Common Misconceptions About Selling Out of an Estate

“I Can Sell Right Away After Someone Passes”

Many believe they can immediately list and sell a property after a loved one’s passing. However, without proper documentation, including proof of ownership and authority to sell, the process cannot begin.

“A Power of Attorney (POA) Can Handle Everything”

A POA is only valid while the person granting it is alive. After their passing, the agent no longer has the power to act under the POA and who has authority to act for the estate will be determined by the probate court documents or an affidavit of heirship.

“No Will Means No Sale”

When there is no will, or a will is not probated, properties can still be sold by using affidavits of heirship or court proceedings to determine the heirs of the decedent that will need to sign closing documents.

How to Avoid Common Complaints When Selling Out of an Estate

To ensure a smoother estate sale and avoid common complaints, it’s essential to be prepared and organized. Here are key steps to take:

1. Provide to the Title Company, if applicable:

Will (regardless of whether it is probated)
Death Certificate
Probate Documents, if any
Trust, if any
Attorney and/or CPA’s contact information handling probate

2. Notify the County Appraisal District (CAD) of the change in ownership and the removal of any exemptions. This helps prevent tax issues and ensures the property records are updated.

3. Review the Commitment: Carefully go over the title commitment with your title company to understand any requirements or exceptions that may impact the sale.

4. Find out the expected timeline from the Seller’s probate attorney: Knowing the timeline for probate proceedings will help set realistic expectations for the closing process.

Following these steps can significantly reduce delays and frustrations, helping to keep all parties informed and the transaction on track. With Republic Title as your partner, you can rely on their expertise and guidance through each step, making this process as smooth as possible.

Selling Out of an Estate With a Power of Attorney

As mentioned earlier, a POA ceases to be valid upon the grantor’s death. However, during their lifetime, it can be instrumental in managing property sales if the property owner is incapacitated. Ensure the POA explicitly grants authority to sell real estate, and provide the document to the title company.

Selling When There Is No Will

Here’s how to navigate the process of selling property when there is no will:

1. Affidavits of Heirship:

Used to determine legal heirs and transfer property ownership as set out in the Texas Estates Code .
Requires signatures from disinterested witnesses who knew the deceased.

2. Probate Proceedings:

The court appoints an Administrator to manage the estate and also may determine the heirs of the decedent.
The Administrator may be given the authority to sell the property by court order.

3. Trusts:

If the property was conveyed to the trustee of a trust, it may be possible to avoid probate to sell the property. The power of the trustee to sell the property is defined by the trust documents.
This may simplify the process and avoid many of the potential delays associated with court proceedings.

Republic Title’s experienced team of professionals understands the intricacies of estate sales and will help you through the process of selling after a death and ensure that the necessary documents are signed. With a commitment to proven expertise, dedicated service, and lasting relationships, Republic Title is the trusted partner for estate transactions across North Texas.

*This article is intended to provide basic information about the sale of property after the death of an owner. Nothing contained in this article is intended to be a substitute for legal advice, and Republic Title recommends that anyone seeking wills, estate planning, or probate advice should contact an attorney to provide you with legal advice and help guide you.

Source: Selling an Estate After a Death: A Comprehensive Guide with Republic Title – CandysDirt.com

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Texas Housing Insight September 2024 Summary

December 5, 2024

by Republic Title Real Estate Articles Resources Stats

All measurements are calculated using seasonally adjusted data, and percentage changes are calculated month-over-month, unless stated otherwise.

The third quarter ended with an increase in home sales. Pending sales had a stronger increase, which could mean another positive month in October. Home prices increased slightly, and new listings decreased after stronger growth earlier in the year. In the new-home market, both permits and starts dipped in September. Growth was exceptionally strong for both in the spring, but the pace has since leveled out.

Sales Increase, New Listings Dip

After a dip in August, statewide seasonally adjusted home sales increased by 4.8 percent month over month (MOM), resulting in 26,165 homes sold (Table 1). Houston had the largest increase among the Big Four at 11.6 percent (7,150), followed by Dallas at 4.6 percent (7,202) and Austin at 2.6 percent (2,331). San Antonio was the only one among the Big Four to have a decrease in September (10.3 percent), resulting in 2,523 homes sold.

The number of new listings decreased by 490, marking a 1.1 percent fall from August. After Hurricane Beryl, which hit Texas in early July, new listings in Houston plummeted but bounced back in August. Even without the hurricane, the rate of new listings statewide appears to have slowed down after an aggressive start of the year. San Antonio saw an increase of 2 percent (4,104), followed by Austin at 1.2 percent (3,587). Houston and Dallas both decreased by 4 percent each at a current new listing count of 13,412 and 11,002, respectively.

The state’s average days on market (DOM) has remained at 62 days since August. Austin had the largest increase—from 71 to 73 days, a 2.8 percent increase. San Antonio increased from 75 to 76 days. Dallas fell from 55 days to 54 days while Houston remained at 53 days.

Texas’ number of active listings increased from 120,019 to 122,760 (2.3 percent). Active listings across the Big Four had mixed results in September, with Dallas and Houston rising at 4.7 (28,191) and 4.3 percent (29,724), respectively, while Austin fell by 2.7 percent (11,153). San Antonio had no significant changes and increased by only 0.15 percent.

Statewide pending listings have increased from 26,933 to 28,779, which represents 6.9 percent overall. Houston saw a significant increase in pending listings from 7,298 to 8,455 (a 15.8 percent rise), followed by Dallas at 8.2 percent (7,348). San Antonio and Austin had less fluctuation. San Antonio rose by 1 percent (2,702), and Austin fell by 0.5 percent (2,552).

Interest Rates on the Decline

Treasury and mortgage rates both declined in September but at a slower rate than the month before. The average ten-year U.S. Treasury Bondyield fell 15 basis points to 3.72 percent and has consistently been on the downward slope since April of 2024 September saw the lowest rates since June 2023. The Federal Home Loan Mortgage Corporation’s 30-year fixed-rate fell by 32 basis points to 6.18 percent. The Federal Reserve slashed the federal funds rate by 50 basis points and has suggested at least one more rate cut this year.

Single-Family Permits Fall

Statewide, building permits decreased by 1.2 percent MOM in September. Except for San Antonio, which was up 1.2 percent, the Big Four had a downward trend with Dallas falling 5.4 percent (4,021), Austin 3.4 percent, and Houston 1.2 percent.

Single-family construction starts fell after monthly increases since July 2024. Seasonally adjusted statewide single-family starts decreased 2.7 percent MOM to 13,170 units. Most of the Big Four fell in September. Dallas fell the most at 8.8 percent (3,126), followed by Houston at 3.7 percent (4,463) and Austin at 1.6 percent (1,524). San Antonio, meanwhile, increased by 4.1 percent (895).

The state’s total value of single-family starts climbed from $22.77 billion in September 2023 to $28.9 billion in September 2024. Houston accounted for 35.6 percent of the state’s total starts value followed by Dallas with 27 percent.

Home Price Rose Slightly

Texas’ median home price rose 0.9 percent MOM in September from $334,836 to $337,698 (Table 2). San Antonio grew by 2.9 percent at $307,363 and Houston by 1.3 percent at $337,651. Austin dipped by 1.6 percent to $430,011 while Dallas fell by only 0.1 percent to 394,079.

The Texas Repeat Sales Home Price Index (Jan 2005=100), which is a more accurate reflection of home price changes, fell 0.4 percent MOM in September but increased 1.7 percent year over year (YOY). Austin’s annual appreciation remains below the state’s average and fell by 0.9 percent YOY in September.

Source: Texas Housing Insight | Texas Real Estate Research Center