Dive Brief:
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Despite the struggling oil economy in Texas, home prices in the Lone Star State hit an all-time high in the second quarter of 2015. But the rising values have not dampened demand from buyers, the Texas Association of Realtors said on Monday.
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The Texas Quarterly Housing Report noted that Texas real estate seems to be having a delayed reaction to the tanking oil industry, as home sales were stronger in the second quarter than they were at the same time last year, when oil was selling for nearly $100 a barrel.
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Home sales increased by 46.3% between the first and second quarters, and 4.7% year over year, the report said. At the same time, the median price of a Texas home increased by 8.1% from the first quarter and 9% year over year.
Dive Insight:
The median price of a home in Texas topped $200,000 in the second quarter for the first time, the report said.
The rising prices in Texas mirror a national trend: The median sales price of an existing U.S. home reached $236,400, an all-time high, in June, according to the National Association of Realtors.
In Texas as around the country, rising home prices — fueled in large part by a lack of inventory — have led to concern that low-income and first-time buyers are being priced out of the market.
Record-breaking home prices have been reported around the world in the last few weeks. Residential real estate values in the UK, Hong Kong and Sydney, Australia, have reached highest-ever prices as well.
