(HAR report): Single-family home prices set new October highs. The median price (the figure at which half of the homes sold for more and half sold for less) increased 2.1 percent to $239,900 while the average price rose 1.3 percent to $298,354. Despite the record prices, the increases are among the smallest of 2019 and reflect signs of pricing moderation as the year draws to a close.
In addition to the incentive that lower mortgage rates create, buyers benefited from a slightly larger supply of homes on the market with housing inventory up to a 4.0-months supply in October versus 3.9 months in 2018. So far this year, the peak inventory was reached in June and July when it grew to a 4.3-months supply.
Sales of all property types climbed 6.2 percent in October, totaling 8,579 units. Total dollar volume rose 7.9 percent to $2.4 billion.
“Consumers continue to take advantage of attractive buying conditions, between low interest rates, a healthy supply of homes on the market and a strong overall Houston economy,” said HAR Chair Shannon Cobb Evans with Better Homes and Gardens Real Estate Gary Greene. “Interest rates are currently forecast to remain low into the new year, so it’s possible that we get through the holidays without too much of a seasonal slowdown in home sales, but we’ll just have to see how things go.”
The 30-year fixed mortgage rate fell slightly to 3.69 percent the week ending November 7, approaching levels last seen in November 2016, according to figures released by Freddie Mac. It was 3.78 percent the prior week and 4.94 percent a year ago.