Home sales hit two-year low as Texas markets slow

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1. Luxury home prices continue to slide, with Austin leading declines

The national entry point for luxury homes fell 2.7% year over year to $1.25 million in July, the 29th consecutive month of annual declines, according to Realtor.com's housing report.

The broader high-end market is showing signs of normalization rather than distress. The top 5% price threshold fell 1.2%, and the top 1% ultra-luxury threshold declined 1.7%, while homes across every luxury tier sold faster than a year ago, a median 68 days nationally for luxury homes (3 days faster) and 91 days for ultra-luxury (five days faster).

Austin led the nation in luxury price declines, with its entry-level threshold dropping 9.6% to $1.26 million. The metro's million-dollar listings fell 17.8%, while its luxury homes took a median 78 days to sell.

2. Texas ranks 36th among the best states to live

A new WalletHub ranking places Texas at No. 36 out of 50 for overall livability, even as the state continues to draw new residents.

Texas scored well on quality of life, ranking No. 7 with a score of 48.35 out of 100 — but it fell much lower on affordability (No. 35), economy (No. 37), education (No. 40), and safety (No. 33).

The state also ranked No. 46 for homeownership and No. 49 for share of adults with a high school diploma or higher. Texas placed last among all states for its share of insured residents.

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3. Catch up quick

🏘️ Texas is home to some of America's hottest ZIP codes. (MySA)

🏞️ FDR's grandson's Texas ranch hits the market for $21.5 Million. (CultureMap)

💰 320,000 homeowners are underwater and behind on their mortgage payments. (ICE)

🚨 Trump may consider higher capital gains exclusion for home sellers. (Investing)

🚀 Elon Musk plans to build the world's largest building in Texas. (Realtor.com)

4. Home sales hit two-year low as Texas markets slow

Home sales fell 4.1% in July to their lowest level in nearly two years, as near-record prices and economic uncertainty kept buyers on the sidelines, according to a Redfin report.

Pending sales dropped 2.5%, while the median sale price rose 3.2% year over year to $407,730 — the highest July level on record.

San Antonio posted the largest annual decline in home sales at 12.6%, followed by Dallas at 10% and Fort Worth at 9.9%. Pending sales also slid sharply in Houston, down 14.3%.

New listings dropped to their lowest level since October 2024, with about 375,000 homes listed in July. Meanwhile, 14% of home-sale agreements fell through, the highest share since 2023.

5. Existing home sales down 1.7% in July

Existing-home sales fell 1.7% in July to a seasonally adjusted annual rate of 4.06 million, the NAR said Tuesday. Sales were still up 0.7% from a year earlier, while the median home price rose 2% to $434,100, the highest July level on record.

Inventory remains tight, with 1.54 million homes for sale at the end of July, down 1.9% from June and 0.6% from a year earlier. That represents a 4.6-month supply, below the 5- to 6-month level typically considered balanced.

First-time buyers accounted for just 29% of sales, well below the historical norm of about 40%.

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