Happy Independence Day Texas! The Lone Star state is celebrating its 179th birthday, and the latest housing report from the Texas Association of Realtors, gives the state plenty of reason to brag.
Texas, home to HousingWire headquarters, continues to be one of the top states in median household income growth and new home sales, with the median household income of Texas homebuyers increasing 5.9% year-over-year to $97,500, the 2015 Texas Homebuyers and Sellers Report said. This is more than four times the increase in median household income among homebuyers nationally, which rose 1.4% to $84,500 during the same time frame.
“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.
Additionally, 28% of Texas homes purchased between July 2013 and June 2014 were new homes, a 1% decrease from the previous time period yet still nearly double the share of new homes among U.S. home sales during the same time period. Nationally, the share of new home sales remained constant at 16% of all U.S. home purchases.
However, Texas still struggles in some areas due to increased restrictions in lending standards and rising home prices in certain local markets, which stifles the growth of first-time homebuyers in Texas. The percentage of first-time homebuyers in Texas decreased 4% to 29% of all Texas homebuyers between July 2013 and June 2014. Nationally, the percentage of first-time homebuyers decreased 5% to 33% of all U.S. homebuyers during the same time frame.
Here are several other facts showing what’s truly behind Texas pride:
1. Everyone is moving here:
According to the TAR report, Texas currently gains more out-of-state residents than any other state and is a leader in home sales from international buyers. An October TAR report showed that that more than 584,000 people moved to Texas from out of state in 2013.
“It’s a great time to live in Texas. The high demand for Texas real estate is not being fueled by speculation and investment activity – it’s driven by the thousands of people who move to the Lone Star State daily,” said Dan Hatfield, chairman of the Texas Association of Realtors.
2. Luxury homes sales:
According to the 2015 Texas Luxury Home Sales Report released by the Texas Association of Realtors, sales volume increased from 9% up to more than 25% for homes sold at $1 million or more in markets including Austin, Dallas-Fort Worth, Houston and San Antonio.
“The overall economic growth and prosperity in Texas have contributed heavily to the luxury market, making it one of the strongest segments of housing in Texas in 2014,” said Jim Gaines, Ph.D., economist at the Real Estate Center at Texas A&M University.
3. The state is consistent:
“When it comes to the Texas mortgage market, 2015 looks to be both bigger and better than last year, which was a pretty decent year,” Marcus McCue, executive vice president and chief business development officers with Guardian Mortgage, said in a HousingWire blog. “The housing industry is concerned about falling energy prices, but Texas, compared to other oil prominent states, is still well positioned.”