Houston’s new home market hot and waiting

New home prices in the Houston area rose slightly in December to an average of $397,785 as the market began to stabilize and properties stayed on the market a bit longer, according to a new report from HomesUSA. .com.

The Dallas-based real estate brokerage, which lists and sells new homes for builders, tracks a three-month rolling average of new home sales in Texas’ largest markets. The HomesUSA.com New Home Sales Index is based on sales managed by the local multiple listings service in Houston, Dallas-Fort Worth, Austin and San Antonio.

Houston’s average new home price rose slightly from $395,765 in November, but below the 2021 high of $404,453 in October. December’s price is about $41,000 higher – or 12% higher – than December 2020.

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“Houston’s new home market is hot, but not red,” HomesUSA.com CEO Ben Caballero said in a statement. “There is a mix of good news for builders and buyers in Houston as we see more new homes coming up for sale. The good news for builders is that Houston’s new home market is rock solid and continues to grow.

The report follows Houston’s strongest year for home sales in 2021, as single-family home prices climbed 15% to a record annual median of $300,000, according to the Houston Association of Realtors. Bidding wars and selling prices over asking price became the norm as buyers chased a limited supply of homes on the market.

Caballero noted that the housing market has been so buoyant that new homes have sold without ever entering the MLS. However, he observed that builders have started putting more registrations back into MLS over the past few months. Active listings in MLS totaled 7,813 in December, down slightly from November.

Total new home sales, based on MLS data, were higher in all four major Texas markets last month, according to the 3-month moving average. New Houston sales totaled 1,559 in December, compared to 1,365 in November.

The average price of new homes rose in all Texas markets except Austin. The average price in Dallas-Fort Worth reached $436,581 in December, while the average new home price in San Antonio reached $369,468. House prices in Austin fell slightly to $535,815.

Homes spent an average of 56 days on the market in December, up two days from November, according to HomesUSA.com.