Amarillo Market

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Amarillo Area Housing Market Commentary

YTD March 31, 2024


Closed Sales

659 closed sales in 2024 compared with 686 closed sales in 2023, a 3.94% decrease from one year ago. The 659 closed sales were the lowest number of 1st quarter sales for the MSA since 2014. Interest rates are one-half percent higher at 6.79% than one year ago along with an inventory of homes for sale that is lacking in the high demand price ranges. The first quarter was expected to be a challenge for the Amarillo housing market. 

 


Single-Family Home Prices

The average sales price for YTD 2024 increased 1.39% to $267,499 while the median sales price increased by 3.71% to $237,500. These prices are all-time highs for the first quarter. Over the past 20 years, average sales prices increased 3.94% per year and the median price increase is 4.54%.

The Real Estate Center at Texas A&M University provides a more accurate basis for measuring price increases with their Home Price index that measures increases on a “paired sale” calculation. The latest calculation available is 4th Quarter 2023 that showed Amarillo MSA prices increasing by 7.55%% during 2023. This index has averaged 3.57% over the past 19 years (the index was established in 2004).


Days on Market

During the first quarter of 2024 the average days on market was 107, up from 83 a year ago. The median days on market was 77, up from 53 a year ago. Both these measurements are calculated from list date to close date. The 4th Quarter of 2020 was the last quarter when Average Days on Market exceeded 100 days.

Sales Price to List Price Ratio

The sales price to list price ratio during the 1st quarter of 2024 was 97.27% of listed prices, up from 96.97% a year ago.


Months of Inventory

One of the most telling market metrics is total months of inventory which takes into consideration the current listing inventory (891) and the number of total sales in 1Q 2024 (659). Texas A&M’s Real Estate Center’s definition of a buyer-seller balanced market is 6.5 months of available inventory. Overall, the total months of inventory as of March 31, 2024 is 4.06 months as compared to 2.63 months in 1Q 2023. However, that doesn’t tell the full story; for homes priced under $250,000, the total months of inventory stands at 2.60 months. For homes priced between $250,000 and $500,000, the total months of inventory stands at 4.53 months. For homes priced over $500,000, the total months of inventory stands at 13.73 months.


Listing Inventory

There were 891 active single-family listings in the MLS as of March 31, 2024; up 290 listings from one year ago; or a 48% increase from one year ago.

 

Building Permits

140 new single-family homes were permitted during the first three months of 2024 compared with 119 during those same three months in 2023, up 18% from last year. Additionally, 74 permits were issued for new residential Off Site Sewer Facilities (septic systems) in Potter and Randall counties. Builders (and would-be buyers) continue to be challenged by increasing prices for building materials and lots, a persistent shortage of labor and subcontractors, and supply chain interruptions. All of which result in delays and increased prices.

 

Foreclosure Activity (Potter and Randall Counties)

Foreclosure activity is another indicator of the overall health of the local economy in general as well as the housing market, specifically. Residential properties posted for foreclosure increased in 1Q 2024 to 109 postings compared with 93 one year ago. Actual foreclosure sales totaled 32 compared to 17 during the 1st Quarter of 2023. 1st  Quarter 2024 foreclosure sales are 33% above the five-year moving average for foreclosures. After the expiration of the pandemic-era moratorium on foreclosure sales,  activity has returned to pre-pandemic levels.

Unemployment and Job Creation

The Amarillo MSA unemployment rate stood at 3.4% according to the February report from the Texas Workforce Commission (the Texas rate was 4.4%, the US rate was 4.2%). That same report shows 1,900 more people employed today than one year ago, an increase of 1.43%.

Interest Rates

The conventional 30-year mortgage loan interest rate as of March 31, 2024 was 6.79% compared to 6.28% a year ago according to Freddie Mac.

Sources:

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

Freddie Mac


*Amarillo MSA includes Armstrong, Carson, Oldham, Potter, and Randall Counties

*CB First Equity 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. 

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