As we head towards summer, the real estate market in our area is picking up pace. While inventory continues to increase slightly, it is still well below pre-COVID averages. The absorption rate has remained steady at just under 2 months, which means that if no new homes were listed, we would run out of houses to sell in less than 2 months. Compared to 2019, where the rate was nearly 5 months, there is still a lot of ground to cover, and as per the rules of economics, low supply keeps prices up.
Speaking of prices, the average sales price rose by 9.86% over the last year, reaching $275,380, owing to a prolonged inventory shortage and high demand. While the number of homes sold increased by 29% from February, it was about 24% less than the same time last year, with 241 homes sold in March. Additionally, the average days on market increased by 7% from February to 55 days. For a statewide perspective, the latest report from Texas Real Estate Research Center can provide more information.
Data indicates that there is a growing difference between what we call a first-time and a trade-up product. The first-time homes are still seeing multiple offers and competition between buyers. However, the trade-up product, which includes homes priced between $250,000 to $500,000, is sitting longer on the market and even experiencing price reductions. Buyers looking to upgrade might find good deals in today’s real estate market.
If you want to stay up-to-date with the latest local trends, make sure you stay in the know.
*Data provided by the Amarillo Association of Realtors and MLS.