Texas property prices are inflating due to the lack of inventory. However, experts predict that the appreciation rate will soon start slowing down. The desirable part of Texas, especially the metro areas and the suburbs, has fast-growing real estate markets. These parts usually have an outstanding educational system and are known to provide a good value for money. Millennials seeking an ideal location to raise a family often turn to the suburbs of Austin and Dallas when looking to purchase a 1 acre land for sale near me. According to real estate experts, there’s also a significant increase in waterfront properties and ranches for sale, as people are looking to get away from the busy city life.
To learn more, join us for an overview of the Texas property market in 2022 and its future outlook.
Current State of the Single-Family Home Market
Due to record real estate prices and rapidly rising mortgage rates, prospective homeowners are reconsidering making a purchase. The average price of a single-family home in Texas increased to almost $350,000 in April, and the national mortgage rate increased by about 2% in a year, making it difficult for first-time buyers to purchase a home. Consequently, since the peak in January, seasonally adjusted home sales have dropped three months in a row, with the weighted loss on homes under $300,000 indicating the slowdown in first-time buyers.
The median sale price of a property in Texas increased from $327,700 in May 2021 to $390,600 in May 2022, a 19.2% increase. The median sale price in the United States increased by 14.8% between May 2021 and May 2022, which is a larger annual growth in home prices than in the US. Nevertheless, Texas’ median sale price for a home is still lower than the national average: $390,600 compared to $430,621 in May 2022, respectively.
Texas’ housing market has had a 4.3% drop in home sales over the past 12 months, from 31,758 in May 2021 to 30,386 in May 2022. The annual decline of 4.3% is less severe than the 7.4% annual decline for the entire US. The Texas housing market is slightly below the national average in terms of sales-to-list ratio, with Texas having a ratio of 102.7% and the US having one of 103.1% in May 2022.
Current State of the Undeveloped Land Market
Regarding the trend of purchasing undeveloped land and building homes, After a little decline in March, Texas permits resumed their monthly seasonally adjusted pace of 16,000 units. Houston and Dallas were at the top of the national list with 4,800 and 4,700 non-seasonally adjusted licenses, respectively. San Antonio issued 1,400 permits, compared to 2,100 issued by Austin.
There’s currently a high demand for rural land parcels in the Texas land market, and prices are rising due to a shortage of available inventory. The price per acre has increased by 28% over the past year in the Dallas-Fort Worth area due to the region’s intense demand for property, while the amount of land sold has increased by 35%. If you’re looking for land in the Northeast region, you’ll have to pay $5,036. Central Texas’s average cost per acre was 0.95% to $4,146 per acre.
At $6,471, the average cost per acre of small property for sale increased by 3.8% over the previous year. The cost increased by 4.8% to an average of $3,913 per acre in Panhandle and South Plains. Similarly, prices of lots for sale in Northeast Texas rose 5.2% to $10,568. The average cost per acre of small lands in Gulf Coast-Brazos Bottom is $11,675, which is a 4% rise over the previous year. Prices in South Texas increased significantly by 7.4% to $8,926.
Texas Housing Market Future Predictions
In the near future, the housing market in Texas is anticipated to expand. Although there are some regional differences, the Texas housing market reflects greater national trends. The Lone Star State saw a 26.84% increase in real estate values during the previous two years.
Although Texas home sales have slowed, this is more often a sign of availability than demand. Many observers think that if there had been a larger supply of homes for sale, the number of homes sold in Texas in 2021 might have been higher. There may be an increase in overall sales as more recently built homes enter the market. The buyer demand is still strong and is not expected to decline. As bidding battles are frequent, many bidders will likely show interest in your property.