Amarillo Area Housing Market Commentary
YTD June 30, 2018
1,678 single family homes closed during the first six months of 2018 as compared with 1,587 closed sales during the first six months 2017; an increase of 5.73%. The 1,678 closed sales in the first half of 2018 is the third best first half total in the past ten years as reported by the Amarillo Association of Realtors’ Multiple Listing Service (MLS).
Other measurements of the market were mixed; such as an increase in the average sales price of 3.41% to $192,761 while the median sales price decreased by (0.93%) to $160,500.
The average days on market increased to 88 days from 85 days a year ago. However, the sales price to list price ratio increased to 97.35% of listed prices from 96.90% a year ago. The available inventory of homes for sale rose slightly to 1,150 active MLS listings as of June 30, 2018, an increase of 32 more homes for sale from one year ago.
Factors influencing the local housing market include the local unemployment rate which stood at 2.60% according to the May report from the Texas Workforce Commission with 3,100 more people employed than one year ago; conventional 30-year mortgage loan interest rates as of June 30, 2018 were 4.75%, up .625% from where rates stood a year ago. On another positive economic note, foreclosure activity fell slightly in the first half to 123 foreclosures from 127 foreclosures in the first half of 2017, the lowest number of first half foreclosures reported in the past ten years.
However, the most interesting market metric is total months of inventory which takes into consideration the current listing inventory and first six months of sales. Texas A&M’s Real Estate Center’s definition of a balanced market is 6.5 months of available inventory. Overall, the total months of inventory as of June 30, 2018 is 4.11 months, but that doesn’t tell the full story. For homes priced under $250,000, the total months of inventory stands at 2.71 months. For homes priced between $250,000 and $500,000, the total months of inventory stands at 8.73 months. For homes priced over $500,000, the total months of inventory stands at 13.67 months.
2018 Amarillo Housing Market Activity YTD June 30, 2018
1,678 closed sales in 2018 compared with 1,587 closed sales in 2017, a 5.73% increase from one year ago.
Single-Family Home Prices
Average single-family home prices were up 3.41% to $192,761. Median single-family home prices were down (0.93%) to $160,500.
There were 1,150 active single-family listings in the (MLS) as of June 30, 2018. This represents an increase of 32 listings from one year ago.
Considering increases in both YTD Sales Closed and the available single-family inventory, the number of months of available inventory is 4.11 months as compared to 4.08 months one year ago.
306 new single-family homes were permitted during the first half of 2018 compared with 226 in 2017, an increase of 35.40%. For the first time in nearly a decade, the amount of ready-to-build lot inventory no longer inhibits the number of homes that can be built in the market. Available subcontractors and labor appear to be the only governor on the new home market currently.
Residential properties posted for foreclosure and actual foreclosures were basically flat in the first half of 2018. Postings were up 2 in the first half of 2018 to 265 postings, while actual foreclosures were down 4 to 123 foreclosures. YTD 2018 foreclosures were 26% below the five-year moving average.
Amarillo Association of Realtors’ Multiple Listing Service
Texas A&M Real Estate Center
City of Amarillo Building Safety Department
Texas Workforce Commission
Amarillo Foreclosure Report
*CB First Equity, Realtors has reported on the Amarillo Area housing market since 1977. Those reports have been based on reported sales/listings provided by the Amarillo Association of Realtors’ Multiple Listing Service (MLS). The MLS has grown, territorially, over the years and technological advances have made it easier for data to be processed from virtually every corner of the Texas panhandle. We have always focused on the immediate Amarillo area, including Canyon, Claude, Bushland, and Panhandle. However, as the MLS has grown, it has become more difficult to filter out data from outside the immediate Amarillo, resulting in minor distortions in our reports.
Data now considered is specific to five counties that comprise the *Amarillo Metropolitan Statistical Area (MSA). Armstrong, Carson, Oldham, Potter, and Randall counties. This mirrors current reporting at the Real Estate Center at Texas A&M University.