The Multiple Listing Service of the Lubbock Association of REALTORS® includes residential properties and new homes listed by over 1,700 REALTORS®.
Lubbock Real Estate Inventory Marches Upward while Closed Sales Decline
The Lubbock real estate market for the Lubbock Metropolitan Statistical Area (MSA) saw mixed indicators in March 2024, according to the latest data published by the Lubbock Association of REALTORS®.
Closed Sales Dip
The number of closed sales in Lubbock saw a significant decrease, down 6.3% compared to March 2023. This is due in part to increased mortgage rates and buyers delaying purchase plans while waiting to see how rates may change.
Median Home Price Stable
Despite the decline in sales, the median home price in Lubbock was almost unchanged, settling at $242,000. This indicates there’s still steady demand despite indicators of a potential cooling in the market.
Active Listings and Inventory
Like many markets, Lubbock has seen a signicant increase in listings. March continues that trend, with active listings showing a substantial increase of 42.4% from the previous year to a total of 1,458. This increase contributed to a rise in the months of inventory, which now stands at 3.6 months, up 43.6% year-over-year. A balanced market typically has around six months of inventory, so while the increase in listings is providing more options for buyers, Lubbock is still a seller’s market.
Market Dynamics
Homes in Lubbock are taking longer to sell, with the average days on market at 57 days, which is 16 more days than in March 2023. The total days to close a transaction has also increased to 87 days, 17 days longer than last year.
Price Distribution
The price distribution of homes in Lubbock shows that the majority of sales fall below $200,000, accounting for 62.8% of the market. Homes priced below $100,000 make up 25.5%, while those in the $100,000 to $199,000 range constitute 37.3%. Higher price brackets see progressively fewer sales, with homes priced between $750,000 and $999,000 comprising just 1.1% of the market.
The Lubbock housing market is exhibiting a mixed performance. The slight increase in median home prices indicates steady demand, yet the significant drop in closed sales and the surge in active listings suggest a potential cooling in the market. The extended days on market and days to close also highlight a slower transaction pace compared to the previous year.
The increase in active listings and months of inventory could provide more options for buyers, potentially leading to more competitive pricing and negotiations. However, sellers might face challenges in achieving quick sales, necessitating strategic pricing and marketing efforts.
