Buyers should expect the competitive market for housing to continue into 2015, an economist said Monday in a quarterly real estate report.

“Developers are building homes about as fast as they can, but continued shortages in labor and vacant developed lots are keeping homebuilders from increasing production even further,” Jim Gaines, an economist with the Texas A&M Real Estate Center, said in a statement. “Combined with higher home prices and tougher lending standards, the Texas housing market will remain very competitive for homebuyers into 2015.”

Houston-area home prices shot up 7.4 percent in the third quarter as housing inventory remained at historic lows, according to the Texas Quarterly Housing Report, which is compiled by the Real Estate Center using statistics from multiple listing services in nearly 50 markets throughout Texas. The report includes data for single-family home sales.

From July through September, 23,645 homes sold throughout this area, an increase of 1.35 percent over the same period in 2013. The median price during that time was $198,700. Housing inventory fell to 2.9 months.

Across Texas, 80,851 single-family homes traded hands during the quarter, up just slightly over a year earlier.

Inventory across the state was up to 3.7 months from the previous quarter, but down from 2013. The statewide median price was $188,900, up 6.8 percent.

“The third quarter of the year is typically a much slower sales period — summer is over, school has started and families are staying put for the upcoming holiday season. That was not the case this year,” Dan Hatfield, chairman of the Texas Association of Realtors, said in a statement “Texas home sales continue to slightly exceed last year’s levels. If this trend continues, 2014 will surpass 2013 to become the second-best year ever for Texas real estate.”

The report below details housing activity across Texas markets.