HOUSTON – (Realty News Report) – Texas home builders posted a strong year for new-home sales in 2017, according to a report by HomesUSA.com.
“We are coming off one of the best years in recent Texas new home construction history, despite the devastating impact of Hurricane Harvey,” said Ben Caballero, owner of HomesUSA. “For builders and buyers, new home sales appear to be starting the year strong as buyers continue to benefit from generally lower new home prices.” He added, “If the Amazon HQ2 decision favors either Austin or Dallas, the next decade in Texas home building would be phenomenal.”
New-home sales showed record strength across Texas’ four major housing markets. The rolling 12-month average of sales in these markets rose from 3,480 in November to 3,548 in December, based on data compiled by HomesUSA.com from local MLS and trade associations, including the Houston Association of Realtors, North Texas Real Estate Information Systems, San Antonio Board of Realtors and the Austin Board of Realtors.
Using a 12-month rolling average, HomesUSA.com reports December sales by market as follows: Dallas–Fort Worth posted 1,322 sales, up from 1,279 in November; Houston posted 1,182 sales, up slightly from 1,178; Austin posted 589 sales, up from 571; and San Antonio posted 455 sales, up from 452.
These Texas gains reflect broader national strength in new-home sales for 2017. The Commerce Department reported that total new-home sales were up 8.3% nationally for the year, even though December’s sales dropped 9.3% from November.
In Texas, the pace of new-home sales accelerated modestly in December as the combined “days on market” for new listings fell from 122.13 days in November to 121.72 days in December. Dallas–Fort Worth, Houston and San Antonio saw slight increases in sales pace last month, while Austin experienced a modest slowdown, according to the HomesUSA.com Index for December.
Caballero notes that the average days on market for new homes is roughly 65 days longer than for existing or pre-owned homes.
Why the difference? “There’s a huge difference between selling a new home and a pre-owned or existing home,” Caballero explained. “New homes are often listed during the early stages of construction, which gives buyers the opportunity to customize features. Listing homes while they are being built increases visible inventory and helps buyers and agents compete in a tight market.”
The HomesUSA.com New Home Sales Index is the first index of its kind to track new-home sales across these markets. Created by Caballero—who has been recognized for innovation in real estate—the index analyzes sales of homes listed in the Dallas–Fort Worth, Houston, Austin and San Antonio multiple listing services.