Texas Housing Market Report Halfway Through 2022

Facing record-high year-over-year rates of inflation, the Fed has been trying to combat it with a series of rate hikes that many Americans haven’t seen in decades. Rising mortgage rates have certainly had an impact on housing markets in the United States, with the number of home sales nationally declining by 7.4%, from 636,507 home sales in May 2021 to 589,146 home sales in May 2022, according to the latest data from Redfin
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Texas has always displayed exceptional traits when it comes to its economy and housing market compared to the U.S. overall. Indeed, looking back at the surge in prices during the late-2000s housing bubble, the graph for Texas home prices barely reflects the growing bubble displayed in the national graph. Thus, when it comes to the 2022 housing market, the Texas housing market is naturally an interesting one to investigate. Using housing data from Redfin, we broke down in detail the 2022 Texas housing market and where it’s headed.

10 Cities in Texas Where Home Prices Have Risen the Most

Looking at the increase in median sale price from May 2021 to May 2022, 10 Texas housing markets really stand out. Here’s a look at the 10 Texas cities with the largest growth in home prices over the last year:

1. Waco, Texas

Median sale price – May 2021: $155,000

Median sale price – May 2022: $247,000

Home price growth YOY: 59.4%

2. Allen, Texas

Median sale price – May 2021: $456,000

Median sale price – May 2022: $672,475

Home price growth YOY: 47.5%

3. College Station, Texas

Median sale price – May 2021: $252,175

Median sale price – May 2022: $347,501

Home price growth YOY: 37.8%

4. Longview, Texas

Median sale price – May 2021: $188,000

Median sale price – May 2022: $257,500

Home price growth YOY: 37.0%

5. Temple, Texas

Median sale price – May 2021: $240,000

Median sale price – May 2022: $328,101

Home price growth YOY: 36.7%

6. McKinney, Texas

Median sale price – May 2021: $425,000

Median sale price – May 2022: $577,700

Home price growth YOY: 35.9%

7. Frisco, Texas

Median sale price – May 2021: $541,750

Median sale price – May 2022: $725,000

Home price growth YOY: 33.8%

8. Plano, Texas

Median sale price – May 2021: $430,000

Median sale price – May 2022: $570,000

Home price growth YOY: 32.6%

9. Flow
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er Mound, Texas

Median sale price – May 2021: $510,000

Median sale price – May 2022: $664,000

Home price growth YOY: 30.2%

10. Mission, Texas

Median sale price – May 2021: $185,005

Median sale price – May 2022: $240,000

Home price growth YOY: 29.7%

10 Cities in Texas Where Inventory Has Decreased the Most

Available inventory took a major hit in the course of 2021 and early 2022, with many housing markets across the U.S. witnessing their supply of available homes for sale cut in half, or worse. Here’s a look at the 10 Texas housing markets where inventory has declined the most from May 2021 to May 2022:

1. Bryan, Texas

Available inventory – May 2021: 51

Available inventory – May 2022: 23

Decline in inventory YOY: 54.9%

2. Dallas, Texas

Available inventory – May 2021: 2,121

Available inventory – May 2022: 1,374

Decline in inventory YOY: 35.2%

3. Atascocita, Texas

Available inventory – May 2021: 233

Available inventory – May 2022: 151

Decline in inventory YOY: 35.2%

4. The Woodlands, Texas

Available inventory – May 2021: 240

Available inventory – May 2022: 161

Decline in inventory YOY: 32.9%

5. Richardson, Texas

Available inventory – May 2021: 133

Available inventory – May 2022: 90

Decline in inventory YOY: 32.3%

6. Carrollton, Texas

Available inventory – May 2021: 147

Available inventory – May 2022: 104

Decline in inventory YOY: 29.3%

7. Tyler, Texas

Available inventory – May 2021: 66

Available inventory – May 2022: 47

Decline in inventory YOY: 28.8%

8. Irving, Texas

Available inventory – May 2021: 181

Available inventory – May 2022: 133

Decline in inventory YOY: 26.5%

9. Houston, Texas

Available inventory – May 2021: 6,172

Available inventory – May 2022: 4,635

Decline in inventory YOY: 24.9%

10. Pearland, Texas

Available inventory – May 2021: 147

Available inventory – May 2022: 114

Decline in inventory YOY: 22.4%

10 Cities in Texas Where Homes Are Selling for the Most Above Their List Price

Sales-to-list ratio measures the average price a home sold for above or below its list price in a given area. Thus, a sales-to-list ratio of over 100% indicates that the average home is selling for more than it was listed for; a sales-to-list ratio below 100% indicates that the average home is selling for less than the price it was listed for. As a result, sales-to-list ratio can be a useful metric for gauging how popular certain housing markets are by showing which markets are seeing homebuyers willing to pay well above the original list price. Here’s a look at the 10 Texas cities ranked by the highest sales-to-list price ratios in May 2022:

1. Allen, Texas

Sales-to-list ratio – May 2021: 106.7%

Sales-to-list ratio – May 2022: 109.6%

Change in sales-to-list ratio YOY: 2.7%

2. Frisco, Texas

Sales-to-list ratio – May 2021: 106.3%

Sales-to-list ratio – May 2022: 109.5%

Change in sales-to-list ratio YOY: 3.0%

3. Plano, Texas

Sales-to-list ratio – May 2021: 105.1%

Sales-to-list ratio – May 2022: 109.5%

Change in sales-to-list ratio YOY: 4.1%

4. McKinney, Texas

Sales-to-list ratio – May 2021: 107.1%

Sales-to-list ratio – May 2022: 109.1%

Change in sales-to-list ratio YOY: 1.9%

5. Flower Mound, Texas

Sales-to-list ratio – May 2021: 105.9%

Sales-to-list ratio – May 2022: 108.6%

Change in sales-to-list ratio YOY: 2.5%

6. Carrollton, Texas

Sales-to-list ratio – May 2021: 105.1%

Sales-to-list ratio – May 2022: 108.6%

Change in sales-to-list ratio YOY: 3.3%

7. Richardson, Texas

Sales-to-list ratio – May 2021: 103.8%

Sales-to-list ratio – May 2022: 108.2%

Change in sales-to-list ratio YOY: 4.2%

8. Lewisville, Texas

Sales-to-list ratio – May 2021: 105.2%

Sales-to-list ratio – May 2022: 107.8%

Change in sales-to-list ratio YOY: 2.4%

9. Cedar Park, Texas

Sales-to-list ratio – May 2021: 113.1%

Sales-to-list ratio – May 2022: 107.3%

Change in sales-to-list ratio YOY: -5.2%

10. Round Rock, Texas

Sales-to-list ratio – May 2021: 111.7%

Sales-to-list ratio – May 2022: 107.0%

Change in sales-to-list ratio YOY: -4.2%

The Bottom Line on the Texas Housing Market 2022

In the statewide Texas housing market, the median sale price for a home rose by 19.2%, from $327,700 in May 2021 to $390,600 in May 2022. That year-over-year increase in home prices is greater than the U.S. overall, which saw its median sale price increase by 14.8% from May 2021 to May 2022. However, the median sale price for a home in Texas is still more affordable than the U.S. median: $390,600 versus $430,621 in May 2022, respectively.

Home sales in the Texas housing market have declined over the last year, by 4.3%, from 31,758 home sales in May 2021 to 30,386 home sales in May 2022. However, the year-over-year decline of 4.3% is not as steep as the U.S. overall decline of 7.4%. In terms of sales-to-list ratio, the Texas housing market is just a little below the national average, with Texas having a sales-to-list ratio of 102.7% and the U.S. having one of 103.1% in May 2022.