Neighborhood Listings Search Amarillo Area Housing Market Commentary
YTD June 30, 2017
1,645 single family homes closed during the first six months of 2017 as compared with 1,818 closed sales during the first six months 2016; a decrease of 9.52%. However, the 1,645 closed sales in the first half of 2017 is the third best first half total in the past ten years as reported by the Amarillo Association of Realtors’ Multiple Listing Service (MLS).
Other measurements of the market were very positive including the average sales price which was up 2.90% to $183,610 along with the median sales price increasing 5.20% to $159,900, both at all-time highs for sold prices during the first half of the year. The average days on market fell to 90 days from 95 days a year ago. At the same time, the sales price to list price ratio rose slightly to 97.14% of listed prices from 96.99% a year ago. The available inventory of homes for sale continues to challenge the market with only 1,118 active MLS listings as of June 30, 2017, an increase of 36 more homes for sale from one year ago.
Factors influencing the local housing market include the local unemployment rate which stood at 3.08% according to the May report from the Texas Workforce Commission with 902 more people employed than one year ago; conventional 30-year mortgage loan interest rates as of June 30, 2017 were 4.125%, up one-half percent from where rates stood a year ago. On another positive economic note, foreclosure activity continued to drop in the first half to 127 foreclosures from 168 foreclosures in the first half of 2016, the lowest number of first half foreclosures reported in the past ten years.
Buyers remain most challenged by the lack of available MLS inventory which stands at 4.08 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. Multiple offers remain quite normal for those homes that are competitively priced and in good condition.
2017 Amarillo Housing Market Activity YTD June 30, 2017
1,645 closed sales in 2017 compared with 1,818 closed sales in 2016, a (9.52%) decrease from one year ago.
Single-Family Home Prices
Average single-family home prices were up 2.90% to $183,610. Median single-family home prices were up 5.20% to $159,900.
There were 1,118 active single family listings in the (MLS) as of June 30, 2017. This represents an increase of 36 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 4.08 months as compared to 3.57 months one year ago.
226 new single-family homes were permitted during the first half of 2017 compared with 237 in 2016, a decrease of (4.64%). The decrease is somewhat misrepresented by the fact that the 2016 total included 57 single-family attached homes (townhomes), thus, single-family detached permits are up by 46 units, an increase of 25.55%. The continued shortage of a ready-to-build lot inventory and a tight labor supply challenges new home construction within the Amarillo city limits. Fortunately, an increase in developed lots is forecast by year end.
Foreclosure Activity (Notice: there is no breakdown between residential and commercial foreclosures)
Properties posted for foreclosure and actual foreclosures were down from the first half of 2016. Postings fell from 293 in the first half of 2016 to 263 in the first half of 2017 (a 10% decrease) while actual foreclosures fell from 168 in 2016 to 127 in 2017 (a 24% decrease).