By Rye Druzin
Midland’s real estate prices have risen again after a one-month drop, according to data released by the Real Estate Center at Texas A&M University.
Median home prices rose $2,400 year-over-year for August, from $246,800 in 2013 to $249,200 in 2014. The number of homes sold also rose by 29, and the overall dollar value of sold homes rose by over $6 million, an almost 13 percent increase from August of last year, according to the data.
While median home sale prices have continued to rise, the range of home prices has also changed dramatically in the last 10 years. In 2006, homes priced below $100,000 made up 33.1 percent of the real estate market. In 2013, the last full year that data is available, homes worth less than $100,000 made up only 5.4 percent of Midland’s real estate market, an 83.6 percent decrease in market availability over nine years for homes priced under $100,000, according to the data.
The decrease in the number of cheaper homes on the market has been coupled with a massive increase in homes on the market worth more than $200,000. Since 2004, property priced more than $200,000 has grown from 21.6 percent of the market to 59.6 percent in 2013. Homes between $100,000 and $199,000 saw their share drop 10.7 percent to just over one-third of the real estate market, according to the data.
The rapid growth in prices has been attributed to the booming oil industry, which has brought to Midland and the Permian Basin thousands of jobs and a skyrocketing demand for homes. The growth has led to a severe housing shortage in Midland and also has driven construction of housing and apartment developments throughout Midland, especially in the north and west parts of the city.
More than 1,300 residential lots have been platted, and more than 2,300 apartment units built since January 2013, according to the city.
On the heels of……………
Home Values Up, Rank First In State: Sales volume tops record-high 200 in June
Home values in Midland grew by more than 23 percent year-over-year in June, pushing the Tall City’s median price back to the No. 1 slot statewide for the second time this year.
The volume of homes sold is traditionally strongest during summer months, but the number of transactions in June surged beyond the average and to the highest level in Midland’s documented history.
More than $70.8 million was either financed or spent on real estate purchases last month, about 55 percent more than June 2013, according to the latest data from the Real Estate Center at Texas A&M University.
The median home price last month was $283,100, as 208 single-family homes, townhouses and condominiums were sold. The sales volume grew about 14.3 percent year-over-year, up from 182 transactions in June last year.
Previously, the highest number of homes sold in one particular month was 202, recorded in August 2011.
No other Texas city recorded a higher June median home price than Midland, which hasn’t happened since January. The Tall City also broke its own record for highest median home price.
The new record tops the previous milestone, $251,500, by $31,600.
Midland’s growth mirrors the statewide trend. There were 29,412 home sales completed in Texas last month, the most since June 2006 when 31,431 transactions took place, the data show.
Additionally, the median home value statewide increased by about 7.1 percent year-over-year, up to a new Texas record: $193,700. The total value of home sales throughout the Lone Star State topped $7.4 billion last month, setting yet another record.
It’s less common to see a West Texas city boast such high home values, the Real Estate Center’s data indicate. Counties surrounding Austin, Houston and Dallas typically record the highest median home prices.
Collin County, near Dallas, ranked No. 1 in May for its relatively steep home prices. The area was still strong in June, boasting the third-most expensive homes in Texas.
Home values in Odessa are also among the highest in West Texas, yet still fall well below the median price in Midland. Last month, the median value of an Odessa home was $176,500.
Highest June home values statewide:
1. Midland — $283,100
2. Fort Bend County — $280,800
3. Collin County — $272,700
4. Montgomery County — $251,400
5. Austin — $249,800