Interest rates put ‘downward pressure’ on Texas new-home sales last month
by Emily Marek
New-home sales fell in Texas as interest rates sidelined buyers in February, according to the Texas New Home Sales Report from HomesUSA.
Across Texas’ four largest cities, new-home sales increased year over year, but decreased month over month.
In Houston, there were 2,029 new-home sales in February, up from 1,827 a year prior. However, there were 2,046 sales in January — slightly higher than last month.
Prices decreased annually: Houston’s average new-home price fell to $396,276, down from $402,706 in February 2024. Month over month, however, the average new-home price increased by about $1,000.
“Texas new-home sales softened last month largely due to high mortgage rates and economic uncertainty,” Ben Caballero, CEO of HomesUSA, said in a press release. “This is concerning because spring is the traditional start of the home sales season, but right now, the numbers are telling us to expect only a moderate bounce. This is confirmed by modest pending sales numbers that are forecasting weak sales the first half of 2025.”
Caballero added, “that could change if interest rates moderate.”
Original copy can be found in Houston Agent Magazine here.
