HOUSTON -HAR Report— (April 13, 2022) — Undaunted by rising mortgage interest rates and a record low supply of homes across Greater Houston, consumers kept the local real estate market in positive territory in March. While new listings are entering the market each week, buyer demand has consistently outpaced that supply, and multiple offers on homes continues to push pricing into record territory, solidly positioning Houston as a sellers’ market.
According to the Houston Association of Realtors’ (HAR) March 2022 Market Update, single-family home sales increased 4.1 percent with 9,693 units sold compared to 9,309 in March of 2021. On a year-to-date basis, the market is running 10.8 percent ahead of last year’s record pace. The rental market is also strong as consumers that find themselves unable to purchase a home for the time being are instead opting to lease.
Homes priced between $500,000 and $1 million led the way in sales for the month, registering a 36.1 percent year-over-year gain. The $250,000 to $500,000 housing segment came in second place, climbing 24.0 percent. That was followed by the luxury market – consisting of homes priced at $1 million and above – which increased 16.0 percent.
A continued shortage of available homes below $250,000 has left consumers no choice but to shop for higher-priced homes or to lease. It remains to be seen if mortgage rates, which topped 5 percent last week for the first time in years, will slow the pace of homebuying in April.