“Texas is one of the best states to buy a home in the U.S. because it’s one of the best places to work, do business and raise a family. Our state’s lasting job and economic growth continues to bring higher incomes for Texas families and reaffirms new home sales and development as a critical component in meeting market demand,” said Scott Kesner, chairman of the Texas Association of Realtors.
And TAR’s 2015 Texas Homebuyers and Sellers Report backs up Kesner’s optimism. The median household income of homebuyers in the great state shot up 5.9 percent between July 2013 to June 2014 to $97,500. That’s a much more substantial increase than the national median household income among homebuyers, which increased only 1.4 percent to $84,500.
So, who is buying Texas dirt, and what are they buying? Find out at the jump!
New home sales represented 28 percent of homes purchased between July 2013 and June 2014, down one percent from the previous year, but twice that of the proportion across the U.S. Lending restrictions and home price increases are keeping rates of first-time homebuyers in the basement, with only 29 percent of home purchases made by first-timers, a decrease of 4 percent.
So Texas home buyers are older and more likely to be married, says the TAR report. The typical homebuyer from this period was 45 years old (up two years from the last report) with 72 percent of these homebuyers being married (up one percent from the previous report). That’s a pretty big difference compared to national numbers showing 65 percent of homebuyers being married, which is down one percent.
“Housing affordability is not just a factor of income. It’s also dependent upon the buyer’s ability to qualify for a mortgage and to afford the ongoing costs of homeownership,” Kesner said. “The 84th Texas Legislature will consider several important issues this session that impact homeownership in Texas. Texas Realtors urge our state’s leaders to enforce policies that will continue to protect the rights and quality of life of Texas homeowners.”
Here are more big numbers from the report:
Median household income among first-time homebuyers increased 5.8 percent year-over-year to $72,000 for first-time homebuyers in Texas and 2.3 percent to $68,300 for first-time homebuyers nationally.
Meanwhile, median household income among repeat buyers decreased, dropping 8.9 percent to $97,500 in Texas and dipping one percent nationally to $95,000 year-over-year.
Texans are buying newer, larger homes than homebuyers nationwide. The typical three-bedroom, two-bathroom home in Texas was 2,100 square feet and built in 2002. Nationally, the typical three-bedroom, two-bathroom home was 1,870 square feet and built in 1993.
- Sixteen percent of homebuyers in Texas purchased a multi-generational home due to children over the age of 18 or aging parents moving into the house. Nationally this was 13 percent.
The tenure of owning a home increased one year in both Texas and nationally from July 2013 to June 2014, to nine years in Texas and 10 years nationally.
For Sale by Owner (FSBO) homes in Texas sold for 30 percent less than homes sold using a Texas Realtor. The average Texas FSBO home sold for $160,000, compared to $228,000 for the average Realtor-assisted home sale.