Gone are the days of the Lone Star State rush.
Texas, a popular COVID-era landing pad for out-of-staters fleeing pandemic closures and restrictions, has seen its fortune turn on its head.
Now, four Texas cities top the list of the nation’s “most motivated” seller markets, according to new data from Parcl. Those cities are Sherman, Austin, San Antonio and Dallas — and, by most motivated, the study means that more than one in two home sellers in each are discounting below their original asking prices to lure in buyers.
“What is going on in Texas right now?” said Parcl’s Jason Lewris in a post on X.
“I’ll tell you EXACTLY what it is,” said one in the replies. “There was a blitz of new construction 2021 – 2023. These homes were still selling at 2020 prices but had mid/high interest rates. These folks are in over their heads. Layoffs, cost of living, etc. Now they need to sell, but are underwater 10 – 15 %”
Austin, in particular, has become a prime example of housing oversupply with a rush of construction during that timeframe. The state capital has seen the steepest home price drop of any major US metro since 2022, according to a separate analysis from Realtor.com. What’s more, a May report from Clever Real Estate and Best Interest Financial found Austin to be the slowest-selling housing market in the nation.
Austin ranked No. 3 on the Parcl list. There, 54.4% of sellers — more than one in two — have slashed the listing prices for their homes. Of the 18,217 listings there, there’s a 5.4% median cut and 9.3% are priced below the original ask. Parcl also gives the city a motivated seller index of 7.3, with zero meaning holding firm to 10 being a fire sale.
Sherman, located north of Dallas, was the most motivated metro in America, with an index of 7.47. More than 55% of sellers discounted their listings, of which Sherman has 1,783. There was a nearly 6% median cut and 8% of that sum were priced below.
San Antonio and Dallas were the respective Nos. 4 and 5. Kingsport, Tennessee was the only non-Texas metro in the top five.
San Antonio, with an index of 7.19, saw more than 54% of sellers make discounts.
Of the more than 20,200 listings in the metro, 8% were below and the median discount was 5%. Dallas had 53% of sellers discount their listings, of which the metro has 45,583 total. With an index of 7.03, 8.9% of listings were priced below with a median cut of 4.5%.
Meanwhile, the study also rounded up the least motivated seller metros in the nation. On top, and located clear across the nation, is Rochester, NY.
A rising housing market for years due to its low cost of living and abundant employment opportunities, only 16% of sellers are cutting their asking prices. With an index of 2.27 percent, which Parcl calls “neutral,” the city’s 3,419 listings see a 7% median cut, and 4.5% are priced below.
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