The real estate market enjoyed a splendid first quarter in Texas, where both sales and prices logged positive gains.
According to the latest tally from the Texas Association of Realtors, the volume of sales in the Lone Star State jumped a hearty 12%, while the median price rose a respectable 3%.
“The watchword for Texas real estate in 2011 was ‘consistency’ in both sales volume and price. That allowed us to emerge from last year with stable sales volumes and strong property values," said Joe Stewart, chairman of the Texas Association of Realtors. “Now, in 2012's first-quarter results, we see a strong increase in sales volume and a meaningful increase in the median price. That indicates positive momentum for the year ahead.”
A total of 45,502 single-family properties changed hands in the state during the first three months of the year. The median price of the houses sold during the quarter was $147,100, a 2.7% increase over the same period a year ago.
“We believe several factors are driving the strong performance of the first quarter, including continued job growth in Texas and some increased access to credit for home buyers,” said Jim Gaines, an economist with the Real Estate Center at Texas A&M University.
“Most of all, we're starting to see a shift in Texans’ attitudes toward real estate. Essentially, buyers and sellers have higher expectations for the market, so they’re beginning to take action and we're starting to see the impacts.”
Looking ahead, the inventory of houses for sale decreased from 7.6 months in last year’s first quarter to 6 months in the first quarter of this year. According to the Real Estate Center, 6.5 months of inventory is considered a balanced market, so the decline in houses listed for sale could be a signal that prices will continue to go up in the immediate future.
“If all the indicators play out as we expect,” said Stewart, “the Texas real estate market is in for a busy spring and summer.”
