Texas’ New Home Sales Slump: A Normal Winter Season Trend
A recent statewide real estate report has revealed a slow decline in new home sales across Texas, including in the Houston metro area. According to the report by HomesUSA.com, Houston saw the most new homes sold in January out of the four biggest metros in Texas, despite being in an overall sales slump compared to December 2024.
Houston’s New Home Sales
The three-month moving average of new home sales in the Houston metro was 2,046 last month, versus 2,184 sales in December. Housing prices also declined in January, with the average new home in Houston dropping to $395,515. This is about $6,200 less than the average price in December, which came out to $401,678.
New Home Sales in January throughout Texas
The report found new home sales dropped not only in Houston, but also in Austin, San Antonio, and Dallas-Fort Worth. Dallas-Fort Worth’s three-month moving average of new home sales was the second-highest out of all four metros with 1,847 sales made in January, but that figure technically decreased by 43 homes from December.
Regional Breakdown
- Houston: 2,046 new home sales in January, with an average price of $395,515
- Dallas-Fort Worth: 1,847 new home sales in January, with an average price of $496,498 (an increase of nearly $2,600 from December)
- San Antonio: 1,008 new home sales in January, with an average price of $337,414 (a decrease of 67 homes from December)
- Austin: 809 new home sales in January, with an average price of $483,056 (a decrease from December)
Winter Season Trends
According to HomesUSA founder and CEO Ben Caballero, a sales slump is a normal trend during the winter season. He explained that January sales are often lower than December sales as builders push hard to close the year with as many sales as possible. In the case of Austin, builders were offering discounts, buyer incentives, and Realtor bonuses for December closings, which could be a contributing factor to the lower sales figures.
Active New Home Listings
Active new home listings in Houston flattened from December to January, with 13,127 active listings on the market last month.
Conclusion
While the recent decline in new home sales may seem concerning, it is essential to consider the normal fluctuations that occur during the winter season. As the market continues to evolve, it will be crucial for builders, realtors, and homebuyers to stay informed and adapt to the changing trends.
FAQs
Q: What is the current state of the new home sales market in Texas?
A: The market is experiencing a slow decline in new home sales, with a normal winter season trend.
Q: Which city saw the most new home sales in January?
A: Houston saw the most new home sales in January, with 2,046 sales.
Q: What is the average price of a new home in Houston?
A: The average price of a new home in Houston is $395,515, which is about $6,200 less than the average price in December.
Q: Why do builders push hard to close the year with as many sales as possible?
A: Builders want to maximize their sales figures before the end of the year, which can lead to a slower pace in January.
