Amarillo Market
Amarillo Area Housing Market Commentary
YTD December 31, 2024
Closed Sales
3,026 closed sales in 2024 compared with 3,010 closed sales in 2023, an increase of 0.53% from one year ago as higher interest rates and lack of inventory continued to challenge the local housing market. The Texas A&M Real Estate Center reports statewide sales down (-0.43%) YTD through November, while the National Association of Realtors projects closed sales across the nation to be flat compared to 2023 at 4,000,000 sales nationwide.
Single-Family Home Prices
The number of unit sales may be down, but prices continued to rise in 2024 as a result of continued buyer demand in the market and increased listing inventory. The average sales price for 2024 increased 0.40% to $278,985 while the median sales price increased by 2.90% to $246,950; both dollar amounts being all-time highs.
Days on Market
During 2024 the average days on market (listing date to closing date) was 101, up from 81 days in 2023. The median days on market was 71, compared to 55 days on the market in 2023.
Sales Price to List Price Ratio
The sales price to list price ratio in 2024 was 98.00% of listed prices, an increase from 97.07% a year ago. This metric along with Months of Inventory illustrates the overall bias of the market still firmly in favor of Sellers.
Months of Inventory
One of the most telling market metrics is total months of inventory which takes into consideration the current listing inventory (1,012) and the number of total sales in 2024 (3,026). 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 December 31, 2024, is 4.01 months, the highest experienced since 2018, yet firmly in favor of Sellers. There is strength in virtually every price range with 3.04 months of inventory for homes priced between $100,000 and $249,999. For homes priced between $250,000 and $499,999, the total inventory stands at 3.80 months. For homes priced between $500,000 and $999,999, the total inventory stands at 9.70 months. For homes priced at $1,000,000 and above, the total inventory stands at 23.25 months.
Listing Inventory
There were 1,012 active single-family listings in the (MLS) as of December 31, 2024; up 124 listings from one year ago; an increase of 13.96% from one year ago. The higher inventory provides more choices for buyers and has cooled off the pace of price increases.
Building Permits
551 new single-family homes were permitted by the city of Amarillo during 2024 compared with 484 in 2023, an increase of 67 units or 13.84% more homes permitted. The number of homes being built outside the city limits continues to grow with builders and buyers seeking to avoid city taxes/fees and being able to operate in a friendlier regulatory environment. Our best estimate of the number of homes started outside the city limits in Potter/Randall counties in 2024 is approximately 500 based on new residential construction septic permits issued during the year.
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. 139 residential properties sold at foreclosure in 2024, up 49 properties or 54.44% compared to 2023. However, the 139 foreclosures in 2024 is up 27.52% from the five-year moving average of 109 annual foreclosures. For additional context, the number of foreclosures in 2019 (pre-COVID) was 205, 66 greater that 2024.
Unemployment and Job Creation
The Amarillo MSA unemployment rate stood at 3.10% compared to the statewide rate of 4.20% and national rate of 4.00% according to the November 2024 employment report from the Texas Workforce Commission. Likewise, other West Texas cities reported the following unemployment rates: Abilene – 3.50%, Lubbock – 3.60%, Midland – 2.80%, Odessa – 3.80%, San Angelo – 3.80%, and Wichita Falls – 4.10%. That same report shows 2,600 more people employed than one year ago in the Amarillo MSA, an increase of 1.93%.
Interest Rates
The conventional 30-year mortgage loan interest rate as of December 31, 2024, was 6.85%, up 0.24% from a year ago.
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
City of Amarillo Environmental Health
*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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