What was the final verdict on home sales and home prices in DFW last year? What kind of profit did home sellers get? And how did Texas fare when it came to a ranking of the quality of life in state capitals?
We have all this in this week’s roundup of real estate news.
DFW Home Sales Down, Prices Up
DFW home sales decreased 2.3 percent in 2018, while median prices increased 3.9 percent, the 2018 Texas Real Estate Year in Review report by Texas Realtors revealed.
Single-family home sales in the Dallas-Fort Worth-Arlington MSA totaled 99,848, while the median price increased to $265,000.
Statewide, home sales and home prices broke records for the fourth straight year, with sales increasing 1.7 percent to 344,030 homes, and prices increasing 4.4 percent to $232,900.
“The unprecedented real estate market activity in Texas in 2018 is a testament to the state’s business-friendly atmosphere and strong economy,” said Tray Bates, 2019 chairman of Texas Realtors. “It’s worth noting, though, that the rate of sales and price increases has cooled off a bit compared to prior years.”
Housing inventory across the state increased 0.2 months to 3.3 months of inventory in 2018. Homes spent the same length of time on the market in 2018 as in 2017: an average of 58 days. Active listings statewide increased 1.4 percent from 2017 to 2018.
DFW One of 88 Metros Posting Record Home Prices
Home sellers in 2018 realized an average home price gain since the purchase of their home of $61,000, up from $50,000 last year and up from $39,500 two years ago in 2016 to the highest level since 2006 — a 12-year high, ATTOM Data Solutions reported in its Year-End 2018 U.S. Home Sales Report.
That is an average 32.6 percent return on investment compared to the original price of the home, up from 27 percent last year. It’s also the highest average home seller ROI since 2006.
“While 2018 was the most profitable time to sell a home in more than 12 years, those along the coasts, reaped the most gains. However, those are the same areas where homeowners are staying put longer,” said Todd Teta, chief product officer at ATTOM Data Solutions. “The economy is still going strong and home loan rates remain historically low. But there are potential clouds on the horizon. The effects of last year’s tax cuts are wearing off as limits on homeowner tax deductions are in place and mortgage rates are ticking up ever so slowly, so this could dampen the potential for home price gains in 2019.”
The median home price nationwide was $248,000, up 5.5 percent from last year. Annual home price appreciating slowed slightly, but 88 of 127 metros (69 percent) reached new record home price peaks last year, including Dallas-Fort Worth and Houston.
Among MSAs with at least 200,000 population, six out of 10 of them with the highest share of Federal Housing Administration sales were in Texas: McAllen, El Paso, Amarillo, and Beaumont-Port Arthur. Each of them had more than 20 percent, while nationwide, FHA loans accounted for 10.6 percent of all single-family home and condo purchases last year.
Austin Tops List of Best State Capitals to Live In
Some state capitals rank amongst the richest metro areas in the U.S., but not all of them offer the best quality of life, WalletHub said in its recent 2019 Best State Capitals to Live In report.
Austin, however, took the top spot, garnering high marks across 54 metrics that include cost of living, school quality, and number of attractions.