Texas Real Estate News

North Cypress Land Ventures LLC has broken ground on the first building of Grand Cypress Medical Pavilions in Harris County, Texas. The first phase includes Grand Cypress Doctors Pavilion One, a three-story, 60,000-sf multidisciplinary medical office building with a 12,000-sf endoscopy surgery center. It is slated to be completed in June 2025 and is already 80 percent preleased. Plans for the campus include four to five buildings to be built over the next five years.

Source: Texas A&M University.

The surge in home sales is a testament to the robustness of the Texas housing market. Major cities like Houston witnessed an impressive 37.3 percent increase in housing sales, with over 2,000 additional sales compared to December 2023.
Despite the surge in home sales, mortgage rates continue to remain below their elevated levels seen in 2023. This creates a dynamic market environment where buyers and sellers are actively engaged.

Source: Norada Real Estate Investments.

February 2024 existing home sales see highest monthly gain in 12 months. Sales rose by 9.5% from January to 4.38 million, but still fall short of the year-ago pace by 3.3%.
Monthly gains were seen in every region except the Northeast. Mortgage rates tumbled from late October through mid-January, steadying through early February at some of the lowest rates since May 2023. With prices still going up, and the number of homes on the market still limited, homeowners who choose to pursue a sale in 2024 face rather healthy market conditions. Those hoping to capitalize on the best conditions of the spring market, however, would do well to start planning now.

Source: Realtor.com®.

A new Zillow® analysis of the U.S. Census Bureau's 2022 American Community Survey (ACS) finds Generation Z interstate movers increasingly choose Texas over any other state.
Texas far and away gained the most Gen Z movers. When adding up inbound and subtracting outbound moves, the Lone Star State had a net gain of more than 76,000 Gen Z movers. California gained the remote second number (43,913), followed by Florida (41,394).
Gen Z may prioritize job opportunities and sunshine over affordability when moving to another state.

Source: PR Newswire®.

The median home price for the U.S. was $406,900 in Q3 of 2023—or about $67,000 higher than the median price in Texas. The national price went up 2.2% compared to the year before. Now, what to expect in 2024:
1. The market won’t be as hot but supply will stay tight.
2. Prices will relax, but not crash.
3. Demand for buying a house will stay strong.

Source: Ramsey Solutions.

U-Haul Announces Top Growth States of 2023 and Texas netted the largest number of movers in one-way U-Haul® equipment in 2023, marking the third consecutive year it has finished atop the U-Haul Growth Index.
Florida ranks right behind Texas among growth states for the third year in a row, followed by North Carolina, South Carolina and Tennessee. Idaho, Washington, Arizona, Colorado and Virginia round out the top 10 states for growth.
Texas is the No. 1 growth state for the sixth time in the last eight years and has ranked no lower than second on the U-Haul Growth Index throughout that stretch.

Source: U-Haul Report.

Recent analysis of migration data from the U.S. Census reveals Texas as a popular destination for people moving from other U.S. states. In 2021, Texas experienced an influx of more than half a million people from other states, with the most new residents arriving from California, Florida, and Colorado.
Texas was a top choice for Californians in 2021 with an estimated inflow of more than 107,500 people, the most from any U.S. state.

Source: Texas REALTORS®.

In 2023, the Texas Legislature achieved a significant milestone as Governor Greg Abbott endorsed an $18 billion tax cut initiative tailored for Texas property owners. This groundbreaking move aims to provide substantial relief for residents burdened by property taxes. By implementing this tax cut package, Texas residents stand to experience reduced financial strain, stimulating economic growth and bolstering local spending. In comparison to other states, Texas distinguishes itself by prioritizing property owner benefits through such a substantial tax reduction. This action not only promotes a favorable environment for current homeowners but also enhances the state's appeal for potential residents, reinforcing its reputation as a business-friendly and citizen-focused locale.

Source: The Texas Tribune.

Texas has seen a lot of population growth in the last 2 years, especially in Austin, Dallas and Houston. We predict that population growth in Texas won’t slow down in the next two years. Current job growth in Texas is faster than many other states in the US, and we do not expect a slowdown in job growth in Texas. And this will keep driving migration to Texas.
Recent interest rate hikes have impacted the Texas housing market negatively, causing home sales to slow down. This trend might continue for a while until rates stabilize and buyers get acclimated to the high rates.

Source: RealWealth.