Although incomes for Texans looking to purchase a house are growing, according to an annual report from the Texas Association of Realtors, real estate agencies in the state are noticing that first-time buyers are subdued by increasing home prices.
The Texas Homebuyers and Sellers Report found that from July 2013 to June 2014, the median household income of Texas homebuyers increased 5.9 percent year-over-year to $97,500. This is more than four times the increase in median household income among homebuyers nationally, which rose 1.4 percent to $84,500 during the same time frame.
However, increased restrictions in lending standards and rising home prices in certain local markets continue to suppress the growth of first-time homebuyers in Texas. The percentage of first-time homebuyers in Texas decreased four percent to 29 percent of all Texas homebuyers between July 2013 and June 2014. Nationally, the percentage of first-time homebuyers decreased five percent to 33 percent of all U.S. homebuyers during the same time span.
According to Texas Realtors, new homebuyers are becoming older and more likely to be married couples. The average first-time homebuyer in Texas was 32 years old, up from 31 years in 2012-2013. From July 2013 to June 2014, the typical Texas homebuyer age was 45 years old, an increase of two years from the previous time frame. The percentage of married homebuyers increased one percent year-over-year to 72 percent, compared to a one percent decrease to 65 percent nationally.
Further analysis of Texas home buyers found that the most difficult step in the home-buying process for first-time and repeat homebuyers was finding the right property. Texas still outpaces the nation in new home sales (28 percent of homes vs 16 percent of homes nationally), but fell from 30 percent of the previous year.