Amarillo Area Housing Market Commentary
YTD September 30, 2023
2,381 closed sales in 2023 compared with 2,796 closed sales in 2022, a -14.84% decrease from one year ago. The 14.85% decrease in closed sales in the Amarillo MSA compares to a 12% decrease statewide and a 20% decrease nationally.
Single-Family Home Prices
Both Average and Median single-family home prices reached new highs during the first nine months of 2023. Average single-family home prices are up 2.37% to $273,766. Median single-family home prices are up 4.35% to $240,000.
Days on Market
During the first nine months of 2023 the average days on market was 80 and the median days on market was 53, compared to 66 and 46 days on market, respectively in 2022.
Sales Price to List Price Ratio
The sales price to list price ratio moved down to 97.28% compared to 98.02% a year ago. This metric along with Months of Inventory illustrates the continued overall bias of the market being 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 and first nine months of sales activity. 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 September 30, 2023 in the Amarillo MSA is 2.97 months versus 1.69 months one year ago. However, there’s more to the story. For homes priced under $300,000, the total months of inventory stands at 1.94 months. For homes priced between $300,000 and $499,999, the total months of inventory stands at 4.15 months. For homes priced between $500,000 and $999,999, the total months of inventory stands at 6.47 months. For homes priced between $1,000,000 and $1,499,999 the total months of inventory stands at 23 months. The inventory of homes priced over $1,500,000 stands at 135 months.
There were 786 active single-family listings in the MLS as of September 30, 2023; up 262 listings from one year ago; an increase of 50%. 3,833 single family listings have come on the market through the first nine months of 2023 compared to 3,745 in the same time period in 2022, an increase of 2.35%.
338 new single-family homes were permitted by the city of Amarillo during the first nine months of 2023 compared with 511 in 2022, a decrease of -33.86%. On average there is an equal number of homes under construction outside incorporated areas in Potter and Randall counties. Thus, 750 or so new homes have started during the first nine months of 2023.
Foreclosure activity is another indicator of the overall health of the local economy in general as well as the housing market, specifically. 66 properties have been foreclosed on YTD September 30, 2023. That’s down -8.33% from the same time-period one year ago and down -27.42% compared to the five-year moving average of foreclosure sales. 286 properties have been posted for foreclosure during the first nine months of 2023, up 23.81% compared to 2022 and up 11.72% compared to the five-year moving average of foreclosure postings.
Unemployment and Job Creation
The Amarillo MSA unemployment rate stood at 3.60% compared to the statewide rate of 4.50% and national rate of 3.90% according to the August employment report from the Texas Workforce Commission. Likewise, other West Texas cities reported the following unemployment rates: Abilene – 3.90%, Lubbock – 3.90%, Midland – 2.80%, Odessa – 3.80%, San Angelo – 4.10%, and Wichita Falls – 4.40%. That same report shows 1,100 more people employed than one year ago in the Amarillo MSA.
Conventional 30-year mortgage loan interest rate as of September 30, 2023 is 7.31%, up 0.61% from 6.70% one year ago According to FreddieMac’s Primary Mortgage Survey.
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
*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.