Texas home sales fell shy of an all-time record last year, but 2015 is proving to be a banner year for the housing market. According to the Texas Annual Housing Report, which features insights from research performed throughout the year, the Lone Star State could close the year with record-breaking sales.
"The Texas real estate market has been firing on all cylinders in 2015. People are relocating to Texas from far and wide, homes in all price classes are in high demand, and the number of available properties is slowly rising," said Scott Kesner, chairman of the Texas Association of Realtors, in a release.
Contributing factors to the market's consistent growth include an influx of out-of-state residents as well as international homebuyers. According to the report, home purchases by international homebuyers contributed more than $8.32 billion to the Texas economy during a 12-month period.
Among the market's strongest segments were luxury home sales and small land sales. Dallas-Fort Worth and Houston led the state in luxury home sales, those priced at $1 million or higher, with 15 percent and 13 percent year-over-year growth, respectively. Small land sales throughout the state increased 20 percent from the previous year.
In quarter three of 2015, Texas housing inventory rose to four months, its highest level in two years. Also during quarter three, median home prices rose 7.7 percent year-over-year to $199,900, and home sales were up 7.8 percent.
"The Texas housing market has exceeded expectations and is on pace to possibly set another record for home sales," Kesner said. "The market will remain highly competitive in 2016, making housing development and affordability key areas of focus throughout the state."