March 04, 2022 — Austin — For the seventh year in a row, the number of Texas home sales and median price hit a record-breaking high, according to the 2021 Texas Real Estate Year in Review report released today by Texas REALTORS®.
“2021 was an exciting year for Texas real estate,” said Russell Berry, 2022 chairman of Texas REALTORS®. “Demand for housing hit an all-time high, and we saw many multiple-offer situations, including homes that attracted dozens of offers and sold for well above asking price. Some buyers found it a frustrating environment. Working closely with your REALTOR®—whether a seller sorting through offers or a buyer trying to succeed with an offer—has never been more important.”
The number of homes sold statewide increased 6.2% in 2021, with 416,853 sales. Housing inventory at the end of the year dropped to 1.2 months, a decrease of 0.4 months from the end of 2020. According to the Texas Real Estate Research Center, a market balanced between supply and demand has between 6.0 and 6.5 months of inventory.
Luis Torres, Ph.D., research economist with the Texas Real Estate Research Center at Texas A&M University, commented, “Rising mortgage rates will weaken housing demand and subdue some of the housing price pressures in 2022. The housing market will remain strong with the major headwind being the low inventory of homes for sale, especially in the lower price ranges. Homebuilders are trying to catch up with demand, but are facing steep prices for land, materials, and labor. Expected improvements in supply chain issues should mitigate some of the costs facing builders in the coming months, but new home construction is expected to lag housing demand.”
Median home price reached $300,000, up 15.7% from the prior year. Median price per square foot of $150 represented an increase of 16.9% from 2020 and a 35.6% jump since 2017. Homes spent an average of 34 days on the market, 21 days less than 2020.
Chairman Berry concluded, “We’re seeing a lot of new-home construction in the state, but the Texas population continues to grow as well. As demand remains high and prices rise, REALTORS® know the importance of working on ways to ensure homeownership remains attainable in Texas.”
