The health of our economy continues to support strong housing demand, but the shortage of homes, especially those priced below $300,000, is presently limiting that growth. Home builders are facing increases in building due to the higher value on land, higher costs for labor, and substantial increases in lumber and building supply costs. Building costs (lumber) is expected to dampen later in the year.
The following are stats on what else is going on in housing in Texas:
Residential Construction reached its highest level since 2008 in May.
Single-Family Housing Permits picked up 4.2% (after stagnating Feb, March and April).
Texas remains the National Leader, accounting for 15% of permits issued across the Country.
Austin and Metropolitan Area held 6th place in permits issued, despite a 5% decline. Part of this decline may be due to the rainy month of May dampening the momentum- this was after spiking a decade high in April.
Texas months of inventory (MOI) remained low, but posted a 3rd consecutive “minor” uptick to 3.6 months (6 months is considered a healthy housing market).
A wave of new listings lifted the (MOI) in the whole Texas Urban Triangle: Austin at 2.6 and San Antonio at 3.3.
Texas Housing Sales increased ½% in the Resale Market, Austin at 1.6%, still having to deal with Minimal Supply due to Resale Listings.
San Antonio reached a Record High of almost 3,000 homes sold through the MLS as growth in the Northern Sector continues to be developed (Cibolo, Schertz, New Braunfels).
(Information compiled from A&M Texas Real Estate Center- Dr. James Gaines, Dr. Luis Torres, Wesley Miller, and Paige Woodson)
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