First quarter 2013 sets aggressive pace for Texas real estate

Today, the Texas Association of REALTORS® released the 2013-Q1 edition of the Texas Quarterly Housing Report, showing surging demand for Texas homes at the start of the year as well as rising prices and shrinking inventory. Fueled by Texas’s population and job growth, the report bodes well for the summer selling season.

Shad Bogany, chairman of the Texas Association of REALTORS®, commented: “2012 was a strong year for Texas real estate and, based on these first-quarter results, 2013 looks to be even stronger. We’ve heard a lot about the growth of Texas and now we’re starting to really see the impact on our real estate market.”

As featured in the report, 53,937 single-family homes were sold in Texas in the first quarter of 2013, which is 17.53% more than the same quarter of the prior year. Of the 48 markets included in the report, 40 markets featured increases in sales, indicating the surge is broad-based throughout the state.

The median price for Texas homes in 2013-Q1 was $158,000, which is 7.04% more than the first quarter of 2012. In the same timeframe, the average price was $204,718 – that’s 6.87% more than 2012-Q1. The median price for Texas homes has steadily increased, exceeding or matching the price of the prior year every quarter since the Texas Quarterly Housing Report began in 2009.

“Historically, the median price for Texas homes has increased about four percent each year and we usually see the biggest jump in price between the first and second quarters,” said Jim Gaines, Ph.D., economist with the Real Estate Center at Texas A&M University. “So, with price increases already in the range of seven percent in the first quarter, we could see Texas homes increase in value significantly this year.”

However, Gaines also offered a strong caution, “We’ll only realize our potential for increased sales volume if more sellers enter the market and start listing their properties, increasing the inventory of homes for sale.”

In first quarter 2013, the market featured 4.2 months of inventory, which is 1.7 months less than the prior year. That is significantly less than the 6.5 months of inventory cited by the Real Estate Center as a market in which the supply of homes is balanced with demand.

Gaines explained, “There is clearly demand for Texas homes and rising prices are encouraging more homeowners to consider listing their properties. However, if a homeowner wants to move up, they must be able to find a property to move to, so more supply is needed to capture the growth potential in the market.”

Gaines continued, “In the coming months, I expect we’ll start to hear national news reports about increasing sales in other markets, possibly exceeding those in Texas. That’s because other markets boomed in the mid-2000s and busted in the late 2000s, meaning they need dramatic increases in sales volume and price to recover. I call that an ‘echo boom’ and it’s more indicative of market fluctuations than fundamentals. That never happened in Texas, so the increases you’re seeing in our state are indicative of true increases in demand, driven by population growth. Assuming we continue to add jobs as we have recently, that will make our increases more sustainable.”

The Texas Association of REALTORS® has been working to help the state absorb that growth, advocating for homeowners at the Texas Capitol during the current legislative session. Texas REALTORS® have advanced ideas on improving infrastructure for transportation and water in the state as well as consumer-protection provisions in the property-tax loan industry, mortgage lending, and the property-appraisal process. The 83rd Texas Legislature regular session ends May 31.

Chairman Bogany concluded, “The word is out that Texas is a great place to live and these results are further evidence of that. Now, Texas REALTORS® are on a mission to ensure that remains the case and help our state provide for the needs of its homeowners today and far into the future.”

The Texas Quarterly Housing Report is issued four times per year by the Texas Association of REALTORS® with multiple listing service data compiled and analyzed by the Real Estate Center at Texas A&M University.

About the Texas Quarterly Housing Report

Data for the Texas Quarterly Housing Report is analyzed by the Real Estate Center at Texas A&M University using statistics compiled from 48 multiple listing services in markets throughout Texas. The report includes data for single-family home sales over the course of one quarter and is scheduled for release by the Texas Association of REALTORS® on the following dates each year (or the next business day): Feb. 1, May 1, Aug. 1, and Nov. 1. This report is issued to the media, local REALTOR® organizations, and published on the Texas Association of REALTORS®’ consumer Web site, TexasRealEstate.com.

About the Texas Association of REALTORS®

With approximately 80,000 members, the Texas Association of REALTORS® is a professional membership organization that represents all aspects of real estate in Texas. We advocate on behalf of Texas REALTORS® and private-property owners to keep homeownership affordable, protect private-property rights, and promote public policies that benefit homeowners. Visit TexasRealEstate.com to learn more.

Eight Tips for Moving into a New Home

We understand that moving to a new home is exciting and it can also be an extremely
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Eight Tips for Moving into a New Home

1 Create a moving check list – Moving into a new home takes a lot of preparation. Ensure a smooth transition by developing a check list of what you need to accomplish at least two months prior to your move in date. Your list should include important steps like deciding on a moving company, selecting new furniture, contacting utility companies, banks, and schools and when to start packing. 2 Make a plan and map it out - Your new home will likely have a different layout as you’ve made the choice to build a new home in the style you want. Whether you’re buying new furniture or moving furniture from your current home, create a map of each room in your new home to make optimal use of furniture, decorations, window treatments and open spaces. 3 Create openness – when arranging your furniture in each room, make sure you do not block doors or walkways, or cover windows with elaborate window treatments. The more you can see through and around a room the bigger it will feel. 4 Go green – A new home offers the perfect opportunity to add energy efficient appliances to create a stylish and environmentally friendly living space. Plus, with the range of appliance available in different sizes and finishes, you can make green fit your lifestyle. 5 Keep it simple – Clear away the clutter before you move into your new home. This is your dream home and it’s your palette to create the living space you’ve always wanted. Make your new home as inviting as possible by using smart space design. 6 Make it bright – A well lit room with either natural or full spectrum bulbs coupled with soft wall colors creates a more spacious and open living space. Work with your new home designer to create a warm and inviting environment that you and your family will love. 7 Get the latest technology – New homes offer the opportunity to incorporate the latest technology, including home automation for everything from setting the alarm on the security system to turning on the AC. Plus, with a new home it’s easy to go wireless throughout the home for your computer(s), phone (s), music and more. 8 Landscape for your growing zone – Your outdoor living space and yard are an important part of why you chose your new home. Work with a professional landscaper or research your growing zone and decide on the type of plants and level of maintenance you want to undertake as part of your move in plan. Contact us TODAY to help you start your NEW HOME SEARCH!!