How is the Texas housing market? What is the state of the Lone Star State? Everyone realizes that Texas has grown in population since the pandemic. According to Dave Ramsey’s research, “In the last two years, the population of Texas has grown five times the rate of the United States as a whole.” Wow! So today let’s look at the Texas housing market as a whole, then focus on Montgomery County.

Texas as a Whole

We are always hearing about the growth of Austin; however, it is not the fastest growing city in Texas. It falls under the Dallas-Ft. Worth (DFW) Metroplex. In fact, McKinney and Frisco recently ranked #1 and #2 respectively as the “Best Real Estate Markets in the US” for 2023. To further strengthen the point, Denton is #4 and Allen is #6. Additionally, Ft. Worth, Plano, and Richardson are in the top 30 cities. So seven cities in the DFW area are in the top list of all cities in the United States. By the way, Austin came in as #8, which is not shabby at all. Therefore, compared to the United States, Texas’ real estate market is robust.

So how do they judge which is the best? They use 17 factors to determine the health of a real estate market including but not limited to “home value forecasts, share of underweight mortgages, vacancy rates, housing affordability, credit scores and unemployment rates.”

Inventory and Home Prices

According to Dave Ramsey, the inventory of homes in the state of Texas has doubled in the last year. However, it is still below pre-pandemic levels. As far as the median home price is concerned in Texas, it has risen 0.6% from last year to $326,800. Likewise, days of the market have also risen from 78 to 100 days.

Ramsey Predictions for 2023

Based on his research, Dave Ramsey has made three predictions on the Texas Housing Market.

1. The market will not be as hot—meaning that the crazy, feeding-frenzy days are over for now. Instead, we have entered a more normal zone.
2. Prices will relax but not crash—it is simply a result of supply and demand. There are buyers still wanting homes in a market with lower inventory to buy.
3. Demand for buying a house is still strong—people are still moving to Texas from other states. In fact, Texas is the #3 destination for international home buyers.

So now that we have looked at Texas as a whole with regard to its housing market, let’s compare it to Montgomery County.

Montgomery County

According to Rocket Homes, Montgomery County is still considered a seller’s market. This means houses are expected to sell quickly for top dollar. The median home price has fallen slightly from 2022 to $364,733. On the other hand, days on the market has increased to 40 from 27 days. Regardless of the changes, the prices are steady and the days on the market is still very strong. Additionally, there are currently 1.2% more houses on the market this month than last month for a total of 3,967.

With all of this data and Dave Ramsey’s predictions, the Texas housing market is robust in 2023 and looking healthy for years to come. Likewise, the real estate market in Montgomery County is very strong, too. If you are looking to buy in the Lake Conroe area or sell your home, contact Mike Goins at 936-444-5929.