Amarillo Market

Amarillo Housing Market


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Amarillo Area Housing Market Commentary

YTD December 31, 2023

Closed Sales

3,010 closed sales in 2023 compared with 3,554 closed sales in 2022, a (15.31%) decrease from one year ago as higher interest rates and lack of inventory continue to put a chill on the local housing market. The Texas A&M Real Estate Center reports statewide sales down (11.20%) YTD through November, while the National Association of Realtors projects closed sales across the nation to be down (18-20%) in 2023.

 

Single-Family Home Prices

The number of unit sales may be down, but prices continued to rise in 2023 as a result of continued buyer demand in the market. The average sales price for 2023 increased 4.23% to $277,880 while the median sales price increased by 3.45% to $240,000; both dollar amounts being all-time highs. The percentage increases were approximately half the amount of the increases experienced in 2022, but closer to the market’s historical increases than we’ve experienced since 2019.


Days on Market

During 2023 the average days on market (listing date to closing date) was 81, up from 68 days in 2022. The median days on market was 55, compared to 48 days on the market in 2022.

Sales Price to List Price Ratio

The sales price to list price ratio in 2023 was 97.07% of listed prices, a decrease from 97.90% 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 (888) and the number of total sales in 2023 (3,010). 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, 2023, is 3.54 months, the highest experienced since 2018, yet firmly in favor of Sellers. There is strength in virtually every price range with 2.63 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 3.89 months. For homes priced between $500,000 and $999,999, the total inventory stands at 6.57 months.  For homes priced at $1,000,000 and above, the total inventory stands at 28 months. Thus, the only real weakness in the market is above $1,000,000.


Listing Inventory

There were 888 active single-family listings in the (MLS) as of December 31, 2023; up 317 listings from one year ago; an increase of 55.52% from one year ago. The higher inventory provides more choices for buyers and has cooled off the pace of price increases.

 

Building Permits

484 new single-family homes were permitted by the city of Amarillo during 2023 compared with 680 in 2022, a decrease of 196 units or 28.82% fewer homes permitted. However, the number of homes being built outside the city limits continues to grow significantly with 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 2023 is approximately 600 based on new 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. 90 residential properties sold at foreclosure in 2023, down 11 properties or 10.89% compared to 2022. Additionally, the 90 foreclosures in 2023 is down 26.23% from the five-year moving average of 122 annual foreclosures.

Unemployment and Job Creation

The Amarillo MSA unemployment rate stood at 2.6% according to the November 2023 report from the Texas Workforce Commission. That same report shows 2,800 more people employed from one year ago, an increase of 2.12%.


Interest Rates

The conventional 30-year mortgage loan interest rate as of December 31, 2023, was 6.61%, up 0.19% from a year ago. There was a nice decrease in rates during November-December and the market experienced an uptick.

Sources:

Amarillo Association of Realtors’ Multiple Listing Service

National Association of Realtors

Texas A&M Real Estate Center

City of Amarillo Building Safety Department

City of Amarillo Environmental Health 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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