Prices edge upward even as the supply of homes improves
HOUSTON — (June 13, 2018) —The greater Houston real estate market remained in positive territory in May with a one percent rise in home sales and new record highs for both average and median prices. However, consumers showed waning interest in renting single-family homes and townhomes/condominiums.
According to the latest monthly report from the Houston Association of REALTORS® (HAR), 8,157 single-family homes sold in May versus 8,078 a year earlier. That represents a 1.0 percent increase and marks the second greatest one-month sales volume in history.
Home prices reached the highest levels of all time. The single-family home median price (the figure at which half of the homes sold for more and half sold for less) increased 3.4 percent to $243,000 and the average price edged up 1.3 percent to $305,511, beating the previous record of $305,065 set last month.
For the fourth straight month, the best-performing segment of the market consisted of homes priced in the $500,000 to $749,999 range, which jumped 10.3 percent. The luxury market – those homes priced at $750,000 and above – was unchanged year-over-year.
“We saw textbook seasonality at play across most of Houston in May as the spring homebuying season got underway, and an improving supply of homes definitely helped,” said HAR Chair Kenya Burrell-VanWormer with JPMorgan Chase. “Slower sales among luxury homes should ease pricing pressure going forward which we know would be welcomed news for those concerned about affordability, but for now, Houston remains a seller’s market.”
May sales of all property types totaled 9,721, an increase of 0.6 percent versus the same month last year. Total dollar volume rose 2.0 percent to $2.8 billion.