The Texas real estate market finished 2013 strong, with continued year-over-year increases in sales volume and prices for single-family homes, according to the Texas Association of Realtors’ Texas Quarterly Housing Report released this week.

The report, which uses MLS data compiled by the Real Estate Center, showed 60,998 single-family homes were sold in Texas in fourth quarter 2013, which is 6.78 percent more than the same quarter in 2012. The median price for Texas homes was $172,600, up 8.48 percent from the year before. The average price was up 8.88 percent to $226,216.

“One thing that is notable about the price increases seen in the fourth quarter is that they are relatively consistent across the state,” said Center Research Economist Dr. Jim Gaines. “Those increases are being seen in markets of every size, not just in the largest Texas markets, so that indicates broad-based appreciation for Texas real estate.”

This high demand continued to contribute to a shrinking inventory. During the fourth quarter, the statewide inventory of homes decreased by one full month to 3.6 months, well below the 6.5 months that the Center cites as a balanced market.

“Demand for Texas homes in 2014 should continue,” Gaines said, “but it’s possible that a shortage of inventory could inhibit sales volumes. The steady price increases we’ve seen recently should help alleviate that, enticing more sellers into the market, but buyers should continue to expect to compete for desirable properties.”

Source: Texas Association of Realtors