Back to School: The State of Texas’ Housing Market 

Learn About Texas’ School Seasonality and Housing Industry Changes  

Every seasoned real estate agent knows the ebb and flow of the seasonality of real estate and its effects on the industry’s activity. What’s important about this change in seasonal activity is how it affects your market. Having a firm understanding of your community and your clientele that inhabit it will determine your success throughout the year. 

We can look at this upcoming school year and hope for a return to normalcy as we shift into a post-pandemic world and real estate market. However, Texans are dealing with a stagnating economy, record high inflation, interest rates, and mortgage rates. What we need to focus on now is how to move forward and recover.  

Texas Housing Market Report 

Texas has always remained resilient when it comes to the state’s economy and housing market compared to the U.S. overall. Looking back at the surge in prices during the 2008 housing bubble, Texas home prices did not mirror the growing bubble Americans experienced nationally. Over the past three years though, Texas’ housing market was one of the hottest in the nation, with the median home price rising 21% year-over-year, and 25% since January 2022.  

Typically, coming out of the high activity of the summer season, the Texas real estate market is strong heading into the fall. The Lone Star state’s summer season is still moving today, however, this year looks different. According to Texas REALTORS®, total Texas housing sales peaked in January with nearly 39,000 transactions, and home sales have declined each month since. Total housing sales fell 5.6% in Q2 of 2022, and sales in all major metros declined under the pressure of high prices and mortgage rates. 

To see May 2022’s housing data for your market, use this interactive Metro Map explorer, from REALTOR.com: 

Texas’ School Year Seasonal Effect 

Historically, spring and summer tend to be busy seasons for Texas real estate for a host of reasons, with both inventory and prices peaking in the summer when school is out of session. Entering the school year, real estate activity slows down as homeowners become busy with their kid’s school activities and holiday events.  

This summer, home prices have climbed, but home sales and mortgage applications have declined along with demand which usually declines entering the fall, yet we’ve seen this drop already. Naturally, this is raising concerns for many as we begin to enter the fall season.  

What Does This Mean for Texas’ Real Estate Market? 

With the state of the economy and buyer confidence low, the current slump can be deflating. However, successful real estate agents always find an opportunity in uncertain times. If you look at the current market, there are ways to get creative and help those looking to buy or sell.  

Utilizing tech tools like PropStream, can help real estate professionals create unique customer profile lists and discover properties that aren’t found on common MLS sites. Thinking outside the box will help agents find solutions for homeowners that haven’t listed their homes yet, as well as addressing the concerns sellers have regarding buying a new home after they’ve sold.