YTD September 30, 2017
2,501 single family homes closed during the first nine months of 2017 as compared with 2,749 closed sales during the first nine months 2016; a decrease of 9.02%, well behind the record pace of the 2016 housing market, yet still on pace to close nearly 3,200 homes and be the third best year in the past ten.
Other market metrics showed considerable strength including the average sales price which was up 4.33% to $189,424 along with the median sales price increasing 3.10% to $162,900, both at all-time highs for sold prices during the first nine months of the year. The average days on market fell to 86 days from 92 days a year ago. At the same time, the sales price to list price ratio rose slightly to 97.18% of listed prices from 97.14% a year ago. The available inventory of homes for sale continues to challenge the market with only 1,167 active MLS listings as of September 30, 2017, an increase of 99 more homes for sale from one year ago.
Factors influencing the local housing market include the local unemployment rate which stood at 3.14% according to the July report from the Texas Workforce Commission with 1,047 more people employed than one year ago (an increase of .82%); conventional 30-year mortgage loan interest rates as of September 30, 2017 were 4.125%, up one-half percent from where rates stood a year ago. One of the stronger indicators of overall economic health in our local economy is the continuing decrease in foreclosure activity. During the first nine months of 2017 there were only 181 foreclosures; down 28% from one year ago and down 38% from the five-year moving average. Foreclosures in 2017 are on track to number well less than 300.
Buyers remain most challenged by the lack of available MLS inventory which stands at 4.20 months of inventory as compared to Texas A&M’s Real Estate Center’s definition of a balanced market as being 6.5 months of available inventory. Buyers continue to have fewer choices and higher sales prices, especially for those homes priced below $250,000 where the months of available inventory stands at 3.16. Multiple offers remain quite normal for those homes that are competitively priced and in good condition.
2017 Amarillo Housing Market Activity YTD September 30, 2017
2,501 closed sales in 2017 compared with 2,749 closed sales in 2016, a (9.02%) decrease from one year ago.
Single-Family Home Prices
Average single-family home prices were up 4.33% to $189,424. Median single-family home prices were up 3.10% to $162,900.
There were 1,167 active single-family listings in the (MLS) as of September 30, 2017. This represents an increase of 99 listings from one year ago.
As a result of the decreased sales activity and slight increase in inventory, the number of months of available inventory is 4.20 months as compared to 3.37 months one year ago.
369 new single-family homes were permitted during the first nine months of 2017 compared with 461 in 2016, a decrease of (19.96%). The decrease is somewhat misrepresented by the fact that the 2016 total included 122 single-family attached homes (townhomes), thus, single-family detached permits are up by 30 units, an increase of 8.85%. For the first time in several years the inventory of buildable lots is at a level that is not stifling new construction activity. However, a tight labor supply challenges new home construction within the Amarillo city limits and the effects of the recent hurricanes along the Texas coast and Florida on building costs have not been realized.
Foreclosure Activity (Single-family foreclosures only)
Properties posted for foreclosure and actual foreclosures were down from the first nine months of 2016. Postings fell from 452 in the first nine months of 2016 to 387 in the first nine months of 2017 (a 14% decrease) while actual foreclosures fell from 251 in 2016 to 181 in 2017 (a 28% decrease).
*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.
Therefore, beginning with this report, the data considered is specific to the five counties that comprise the Amarillo Metropolitan Statistical Area (Armstrong, Carson, Oldham, Potter, and Randall counties). This change mirrors recent reporting changes at the Real Estate Center at Texas A&M University.