AUSTIN (Texas Association of Realtors) – According to the Texas Quarterly Housing Report released yesterday by the Texas Association of Realtors (TAR), Texas homes maintained their value in first quarter 2011. This despite a decrease in sales volume, indicating that economic recovery continues in Texas.
“While Texas has not been untouched by the recent economic downturn as indicated by the decrease in sales, it is encouraging to see home prices hold their value in the first quarter,” said TAR Chairman Dwight Hale.
In the first quarter, the median price of existing single-family homes increased 1.3 percent to $143,300 compared with first quarter 2010. During the same period, the volume of home sales was 40,192, 7.3 percent less than the previous year.
“In evaluating the first quarter of 2011, we must remember we’re comparing it to the first quarter of 2010,” said Dr. Jim Gaines, research economist with the Real Estate Center at Texas A&M University. “That time period included March, which was one of the most heavily government-stimulated months of the year by the homebuyer tax credit. While we expected sales to be down given this anomaly, we expected the decrease in the sales volume to be much greater, suggesting that the market is performing well despite the absence of tax credits.”
Texas had 7.5 months of inventory in the first quarter, compared with 6.8 months a year ago.
“Texas is still performing considerably better than other states in terms of maintaining balance between home inventory and demand,” Gaines said. “Combined with the fact that Texas has maintained strong property values, this indicates that the market is absorbing foreclosed and other distressed properties without experiencing harmful excess supply.”