Texas Housing Insights

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TEXAS HOUSING INSIGHT JAMES P. GAINES

CHIEF ECONOMIST

WAYNE DAY

RESEARCH ASSOCIATE

WESLEY MILLER RESEARCH ASSISTANT

LUIS B. TORRES

RESEARCH ECONOMIST TECHNICAL REPORT

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F E B R U A R Y 2 017

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Contents About this Report .............................................................................................................. 3 December 2016 Summary ................................................................................................. 4 Supply .............................................................................................................................. 6 Residential Construction Coincident and Leading Indicator ............................................................ 7 Single-Family Housing Construction Permits ................................................................................... 7 Major Metros Single-Family Housing Construction Permits ............................................................ 8 Border Metros Single-Family Housing Construction Permits ........................................................... 8 Housing Starts .................................................................................................................................. 9 Total New Private Single-Family Construction Value ....................................................................... 9 Vacant Developed Lots ................................................................................................................... 10 Months of Inventory ...................................................................................................................... 10 Major Metros Months of Inventory ............................................................................................... 11 Border Metros Months of Inventory .............................................................................................. 11

Demand .......................................................................................................................... 12 Housing Sales ................................................................................................................................. 12 Major Metros Housing Sales .......................................................................................................... 12 Border Metros Housing Sales ......................................................................................................... 13 30-Year Mortgage Rate and 10-Year Bond Yield ............................................................................ 13 Texas Homes Days on Market ........................................................................................................ 14 Major Metros Existing Homes Days on Market .............................................................................. 14 Border Metros Existing Homes Days on Market ............................................................................ 15 Major Metros New Homes Days on Market ................................................................................... 15 Border Metros New Homes Days on Market ................................................................................. 16

Prices ............................................................................................................................. 16 United States Existing and New Home Average Sales Price ........................................................... 16 Texas Existing and New Home Average Sales Price ........................................................................ 17 Major Metros Existing Home Average Sales Price ......................................................................... 17 Border Metros Existing Home Average Sales Price ........................................................................ 18 Major Metros New Home Average Sales Price .............................................................................. 18 Border Metros New Home Average Sales Price ............................................................................. 19


United States Existing and New Home Median Sales Price ............................................................ 19 Texas Existing and New Home Median Sales Price ........................................................................ 20 Major Metros Existing Home Median Sales Price .......................................................................... 20 Border Metros Existing Home Median Sales Price ......................................................................... 21 Major Metros New Home Median Sales Price ............................................................................... 21 Border Metros New Home Median Sales Price .............................................................................. 22 Texas Home Average Price Per Square Foot .................................................................................. 22 Major Metros Existing Home Average Price Per Square Foot ........................................................ 23 Border Metros Existing Home Average Price Per Square Foot ....................................................... 23 Major Metros New Home Average Price Per Square Foot ............................................................. 24 Border Metros New Home Average Price Per Square Foot ........................................................... 24 Texas Home Median Price Per Square Foot ................................................................................... 25 Major Metros Existing Home Median Price Per Square Foot ......................................................... 25 Border Metros Existing Home Median Price Per Square Foot ....................................................... 26 Major Metros New Home Median Price Per Square Foot .............................................................. 26 Border Metros New Home Median Price Per Square Foot ............................................................ 27 Texas Home Sale Price to List Price Ratio ....................................................................................... 27 Major Metros Existing Home Sale Price to List Price Ratio ............................................................ 28 Major Metros New Home Sale Price to List Price Ratio ................................................................. 28

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About this Report Real Estate Center economists continuously monitor many facets of the global, national, and Texas economies. Texas Housing Insight is a summary of important economic indicators that help discern trends in the Texas housing markets. This monthly publication provides data and insights on the Texas housing markets. We hope you find them useful. Your feedback is always appreciated. Send comments and suggestions to info@recenter.tamu.edu. Dr. James Gaines, Dr. Luis Torres, Wayne Day, and Wesley Miller Data current as of January 30, 2017 Š 2017, Real Estate Center. All rights reserved.

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December 2016 Summary The Texas economy expanded in December as energy and housing markets advanced, and the outlook on overall economic conditions in Texas increased from November. Total nonfarm employment expanded 1.8 percent year-over-year, compared to 1.4 percent growth nationally. Employment growth was spurred by the service-providing sector where educational and health, leisure and hospitality, and government service jobs realized most of the gains. Demand for housing weathered rising mortgage rates. Housing prices further appreciated as strong demand overtook modest supply increases. Months of inventory and days on the market remained relatively low. Total building permits increased over the month and year. Nevertheless, the coincident and leading indexes suggest a slowdown in residential construction. With interest rates expected to rise in 2017, sales in the short-term may pull back, but home prices are expected to keep increasing.

Supply The Texas Residential Construction Leading Index (RCLI), which signals future directional changes in the residential construction business cycle of single- and multifamily housing, declined in December. The RCLI was negatively affected by a monthly decline in housing starts. The Texas Residential Business Cycle (Coincident) Index, the measure of current construction activity, also declined as inflation-adjusted residential construction values continued a slide begun in May 2016. The RCLI indicates slower growth in future residential construction while the coincident index registered a slowdown in current activity already underway. Housing starts decreased 13.2 percent seasonally adjusted year-over-year in December continuing a negative trend that started in latesummer 2016. Housing starts are positively related with construction permits and lag their movements by some months. Single-family housing construction permits statewide increased during December both on an annual and monthly basis. Austin continued to grow at an accelerated rate after reaching a trough in mid-2015. Dallas maintained an upward trend and grew 10.5 percent seasonally adjusted year-over-year. Fort Worth and San Antonio ended 2016 with a consistent climb in housing construction permits that occurred throughout the year. Houston continued its slow recovery, closing the year with slightly fewer housing construction permits relative to 2015. Despite slow growth, Houston still led the nation in the number of single-family permits issued monthly at 2,568; Dallas-Fort Worth (2,327) and Austin (1,144) ranked second and sixth nationally. In the fourth quarter, the supply of vacant developed lots increased in Dallas, Houston, and San Antonio for homes with a sales price over $200,000. The overall supply of lots continued to lag behind the demand for new housing. Months of Inventory of Texas houses for sale settled at 3.6 months (seasonally adjusted), indicating continued strong housing demand and tight supply. The nation rested at 4.3 months, suggesting constrained supply may persist nationally (around 6.5 months of inventory is considered

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a balanced housing market). Overall, supply has been restricted due to limited lot inventory and construction labor shortages.

Demand In December, total housing sales in Texas returned to more muted levels after a strong November. Sales grew just 0.6 percent year-over-year (seasonally adjusted). Nationally, total housing sales contracted marginally at 0.1 percent year-over-year. The major metros in Texas trended back to modest sales levels. Year-over-year growth rates were 3.9 percent for Austin, negative 4.7 percent for Dallas, negative 1.4 percent for Fort Worth, 3 percent for Houston, and 8.4 percent for San Antonio. In November, homebuyers may have expedited purchases prior to interest rate increases; therefore, sales normally occurring in December could have been pulled into the prior month. Employment and income growth, as well as consumer confidence, contributed to increased Texas housing sales. Consumer confidence favored the economy’s sustained post-election surge and tax relief expectations. Interest rates rose in December as inflation and inflation expectations increased due to possible future federal government policy changes. The Federal Home Loan Mortgage Corporation increased 43 basis points to a 4.20 percent average rate on a 30-year fixed-rate mortgage, reaching a peak not seen since April 2014. The ten-year U.S. Treasury bond yield also moved to its highest point since 2014, rising from 2.14 in November to 2.49 percent in December. The number of days that existing and new homes were on the market during December remained low at 53 and 92 days (seasonally adjusted), respectively, reflecting constrained supply and continued strong demand. This stability was reflected in the existing home markets for the Texas Triangle metros, while the new home markets exhibited slightly more volatility. The number of days on the market for new homes increased year-over-year by 15.8 percent in Fort Worth (85) and 3.1 percent in Houston (99), and decreased by 7.3 percent in San Antonio (83). The markets in Austin (105) and Dallas (79) were relatively constant in year-over-year calculations.

Prices Overall, sales prices have risen steadily in Texas since late 2011. Existing home prices increased through December in the state and major metros. The average and median sales price of an existing home in Fort Worth increased by 10 percent and 13 percent seasonally adjusted year-overyear, respectively. The average sales price in Austin, Dallas, and Houston grew more than 5 percent over the same period. San Antonio lagged with year-over-year growth settling just above 0.5 percent. Similarly, new home sales performed better in Austin, Dallas, and Fort Worth than San Antonio and Houston. Average sales prices on new homes in Fort Worth surged 21 percent yearover-year, while Dallas’ gains were more modest at 8 percent. Austin was the house price appreciation leader through December 2016 with existing home prices remaining well above the other major metros. Austin clearly leads the major metros in terms of price per square foot for both new and existing homes. The average new and existing homes in Austin are $50 and $30 more per square foot, respectively, than houses in other major Texas metros. Nonenergy employment 5


growth and a strong services sector caused Dallas-Fort Worth to register strong price appreciation in December. Existing home prices in Houston continued to recover following the energy sector decline while new home prices are still lagging. The difference between the initial listing price to the actual sales price for new homes fell at the start of 2014 and flattened out as the demand for new homes eased. The gap between new and existing home sales-to-price ratio has converged at 0.96. Since 2011, new home prices have exceeded existing home prices by 47 percent and 37 percent based on median and average sales prices, respectively. This price differential results primarily because of increases in home size for newer homes and the significant increases in construction and land costs for new homes. The average price per square foot for a new home in Texas was approximately 19 percent more than for an existing home.

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Supply

Residential Construction Coincident and Leading Indicator (Index Jan 2007 = 100)

110 100 90

Texas Coincident Index United States Coincident Index Texas Leading Index

80 70 60

40

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

50

Note: Seasonally adjusted and detrended. Sources: Real Estate Center at Texas A&M University and Federal Reserve Bank of Dallas

110 100

Single-Family Housing Construction Permits (Index Jan 2007 = 100) United States

Texas

90 80 70 60 50 40

20

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

30

Note: Seasonally adjusted and detrended. Sources: U.S. Census Bureau and Real Estate Center at Texas A&M University

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120 110 100 90 80 70

Major Metros Single-Family Housing Construction Permits (Index Jan 2007 = 100) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels

60 50 40 20

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

30

Note: Seasonally adjusted and detrended. Fort Worth is missing data for Somervell County. Sources: U.S. Census Bureau and Real Estate Center at Texas A&M University

110

Border Metros Single-Family Housing Construction Permits (Index Jan 2007 = 100) Brownsville-Harlingen El Paso Laredo McAllen-Edinburg-Mission

100 90 80 70 60 50

30

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

40

Note: Seasonally adjusted and detrended. Sources: U.S. Census Bureau and Real Estate Center at Texas A&M University

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110

Housing Starts (Index Jan 2007 = 100) United States

Texas

100 90 80 70 60 50

30

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

40

Note: Seasonally adjusted and detrended. Sources: U.S. Census Bureau and Bank of Tokyo-Mitsubishi UFJ

110 100 90

Total New Private Single-Family Construction Value (Index Jan 2007 = 100) Texas Austin-Round Rock Dallas-Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels

80 70 60 50 40 30

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

Note: Inflation adjusted. Seasonally adjusted and detrended. Source: Dodge Analytics

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Vacant Developed Lots (Index 1Q2003=100)

250 225 200

Austin

Dallas

Houston

San Antonio

175 150 125 100

3Q16

1Q16

3Q15

1Q15

3Q14

1Q14

3Q13

1Q13

3Q12

1Q12

3Q11

1Q11

3Q10

1Q10

3Q09

1Q09

3Q08

1Q08

3Q07

1Q07

3Q06

1Q06

3Q05

1Q05

3Q04

1Q04

1Q03

50

3Q03

75

Source: Metrostudy

Months of Inventory (Months)

11 10

United States

9

Texas

8 7 6 5 4 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

3

Note: Seasonally adjusted and detrended. Months of inventory for the United States is estimated using weights for all existing homes and new single-family homes; new non-single-family homes are not included. Texas includes all existing and new homes. Sources: U.S. Census Bureau, National Association of Realtors, and Real Estate Center at Texas A&M University

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Major Metros Months of Inventory (Months)

9 Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels

8 7 6 5 4 3

1

Note: Seasonally adjusted and detrended. Source: Real Estate Center at Texas A&M University

Note: Seasonally adjusted and detrended. Source: Real Estate Center at Texas A&M University

Oct-16

Jul-16

Apr-16

Jan-16

Oct-15

Jul-15

Apr-15

Jan-15

Oct-14

Jul-14

Apr-14

Jan-14

Oct-13

Jul-13

Apr-13

Jan-13

Oct-12

Jul-12

Apr-12

Jan-12

Oct-11

Jul-11

Brownsville-Harlingen El Paso Laredo McAllen-Edinburg-Mission

Apr-11

17.0 16.0 15.0 14.0 13.0 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0

Border Metros Months of Inventory (Months)

Jan-11

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

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Demand 110

Housing Sales (Index Jan 2007 = 100) United States

105

Texas

100 95 90 85 80 75 70 65 60

Note: Seasonally adjusted and detrended. Sales for the United States include all existing homes and new single-family homes; new non-single-family homes are not included. Texas includes all existing and new homes. Sources: U.S. Census Bureau, National Association of Realtors, and Real Estate Center at Texas A&M University

130 125 120 115 110 105 100 95 90 85 80 75 70 65 60 55

Major Metros Housing Sales (Index Jan 2007 = 100) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

55

Note: Seasonally adjusted sales reported by MLS and detrended. Source: Real Estate Center at Texas A&M University

12


130 120 110

Border Metros Housing Sales (Index Jan 2007 = 100) Brownsville-Harlingen El Paso Laredo McAllen-Edinburg-Mission

100 90 80

60

Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

70

Note: Seasonally adjusted sales reported by MLS and detrended. Source: Real Estate Center at Texas A&M University

7.00

30-Year Mortgage Rate and 10-Year Bond Yield (Percent) Mortgage

Bond

6.00 5.00 4.00 3.00

1.00

Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16

2.00

Note: Seasonally adjusted. Sources: Federal Home Loan Mortgage Corporation and Federal Reserve Board

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Texas Homes Days on Market (Days) 110

Existing Home Days on Market New Home Days on Market

100 90 80 70

50

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

Major Metros Existing Homes Days on Market (Days)

105

Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels

95 85 75 65 55 45 35 25

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

60

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

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160 150 140

Border Metros Existing Homes Days on Market (Days) Brownsville-Harlingen Laredo

El Paso McAllen-Edinburg-Mission

130 120 110 100 90 80 70 50

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

120 110

Major Metros New Homes Days on Market (Days) Austin-Round Rock

Dallas-Plano-Irving

Fort Worth-Arlington

Houston-The Woodlands-Sugar Land

San Antonio-New Braunfels

100 90 80 70

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

60

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

15


Border Metros New Homes Days on Market (Days)

160

Brownsville-Harlingen Laredo

140

El Paso McAllen-Edinburg-Mission

120 100 80 60

20

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

40

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

Prices

United States Existing and New Home Average Sales Price ($)

380,000 360,000 340,000

Existing Home Average Sales Price New Home Average Sales Price

320,000 300,000 280,000 260,000 240,000

200,000

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

220,000

Note: Seasonally adjusted and detrended. For single-family homes. Source: Federal Reserve Bank of St. Louis

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350,000 330,000 310,000

Texas Existing and New Home Average Sales Price ($) Existing Home Average Sales Price New Home Average Sales Price

290,000 270,000 250,000 230,000 210,000

170,000

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

190,000

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

375,000 350,000 325,000

Major Metros Existing Home Average Sales Price ($) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels

300,000 275,000 250,000 225,000 200,000

150,000

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

175,000

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

17


180,000 170,000

Border Metros Existing Home Average Sales Price ($) Brownsville-Harlingen El Paso Laredo McAllen-Edinburg-Mission

160,000 150,000 140,000 130,000

110,000

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

120,000

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

440,000 420,000 400,000 380,000 360,000 340,000 320,000 300,000 280,000 260,000 240,000 220,000 200,000

Major Metros New Home Average Sales Price ($) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

18


220,000

Border Metros New Home Average Sales Price ($)

210,000 200,000 190,000 180,000 170,000 160,000 Brownsville-Harlingen El Paso Laredo McAllen-Edinburg-Mission

150,000

130,000

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

United States Existing and New Home Median Sales Price ($)

320,000 300,000

Existing Home Median Sales Price New Home Median Sales Price

280,000 260,000 240,000 220,000 200,000 180,000 160,000

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

140,000

Note: Seasonally adjusted and detrended. For single-family homes. Source: Federal Reserve Bank of St. Louis

19


310,000 290,000 270,000

Texas Existing and New Home Median Sales Price ($) Existing Home Median Sales Price New Home Median Sales Price

250,000 230,000 210,000 190,000 170,000

130,000

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

150,000

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

Major Metros Existing Home Median Sales Price ($)

300,000 280,000 260,000

Austin-Round Rock

Dallas-Plano-Irving

Fort Worth-Arlington

Houston-The Woodlands-Sugar Land

San Antonio-New Braunfels

240,000 220,000 200,000 180,000 160,000 140,000 120,000

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

20


170,000 160,000 150,000 140,000

Border Metros Existing Home Median Sales Price ($) Brownsville-Harlingen El Paso Laredo McAllen-Edinburg-Mission

130,000 120,000 110,000 100,000

80,000

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

90,000

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

370,000 330,000

Major Metros New Home Median Sales Price ($) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels

290,000 250,000

170,000

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

210,000

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

21


Border Metros New Home Median Sales Price ($)

200,000 190,000 180,000 170,000 160,000 150,000 140,000

120,000 110,000

El Paso

Laredo

McAllen-Edinburg-Mission

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

135 130 125

Texas Home Average Price Per Square Foot ($) Existing Home Average Price PSF New Home Average Price PSF

120 115 110 105 100 95 90 85 80 75

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

Brownsville-Harlingen

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

130,000

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

22


170 160 150 140 130 120

Major Metros Existing Home Average Price Per Square Foot ($) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels

110 100 90 80 60

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

70

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

100 95 90 85

Border Metros Existing Home Average Price Per Square Foot ($) Brownsville-Harlingen El Paso Laredo McAllen-Edinburg-Mission

80 75 70 65

55

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

60

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

23


170 160 150

Major Metros New Home Average Price Per Square Foot ($) Austin-Round Rock

Dallas-Plano-Irving

Fort Worth-Arlington

Houston-The Woodlands-Sugar Land

San Antonio-New Braunfels

140 130 120 110 100

80

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

90

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

125 120 115 110 105

Border Metros New Home Average Price Per Square Foot ($) Brownsville-Harlingen El Paso Laredo McAllen-Edinburg-Mission

100 95 90 85 75

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

80

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

24


125 120 115

Texas Home Median Price Per Square Foot ($) Existing Home Median Price PSF New Home Median Price PSF

110 105 100 95 90 85 80 70

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

75

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

150 140 130 120 110

Major Metros Existing Home Median Price Per Square Foot ($) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels

100 90 80 70 60

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

25


Border Metros Existing Home Median Price Per Square Foot ($)

105 100 95

Brownsville-Harlingen

El Paso

Laredo

McAllen-Edinburg-Mission

90 85 80 75 70 65 55

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

60

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

145 135 125

Major Metros New Home Median Price Per Square Foot ($) Austin-Round Rock Dallas-Plano-Irving Fort Worth-Arlington Houston-The Woodlands-Sugar Land San Antonio-New Braunfels

115 105 95

75

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

85

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

26


110 105 100

Border Metros New Home Median Price Per Square Foot ($) Brownsville-Harlingen El Paso Laredo McAllen-Edinburg-Mission

95 90 85 80

70

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

75

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

Texas Home Sale Price to List Price Ratio (%)

0.99 0.98 0.97 0.96 0.95 0.94 Existing Home Sale-to-List Price Ratio

0.93

New Home Sale-to-List Price Ratio

0.91

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

0.92

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

27


Major Metros Existing Home Sale Price to List Price Ratio (%)

0.99 0.98 0.97 0.96 0.95 0.94

Austin-Round Rock

0.93

Dallas-Plano-Irving

0.92

Fort Worth-Arlington Houston-The Woodlands-Sugar Land

0.91

San Antonio-New Braunfels Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

0.90

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

Major Metros New Home Sale Price to List Price Ratio (%)

1.00 0.99 0.98 0.97 0.96

Austin-Round Rock

0.95

Dallas-Plano-Irving

0.94

Fort Worth-Arlington

0.93

Houston-The Woodlands-Sugar Land

0.92

San Antonio-New Braunfels

Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

0.91

Note: Seasonally adjusted and detrended. For single-family homes. Source: Real Estate Center at Texas A&M University

28


MAYS BUSINESS SCHOOL Texas A&M University 2115 TAMU College Station, TX 77843-2115

http://recenter.tamu.edu 979-845-2031

DIRECTOR GARY W. MALER

ADVISORY COMMITTEE RUSSELL CAIN, CHAIRMAN Port Lavaca

DOUG JENNINGS, VICE CHAIRMAN Fort Worth

MARIO A. ARRIAGA Conroe ALVIN COLLINS Andrews JACQUELYN K. HAWKINS Austin BESA MARTIN Boerne

TED NELSON Houston DOUG ROBERTS Austin C. CLARK WELDER San Antonio BILL JONES, EX-OFFICIO Temple

i


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