Housing market in Houston

HOUSTON — (October 10, 2018) — After a sizzling summer of home sales and rentals, the Houston housing market cooled in September, showing no apparent lingering effects of Hurricane Harvey as it did in August.

According to the latest monthly report from the Houston Association of REALTORS® (HAR), 6,548 single-family homes sold in September compared to 6,953 a year earlier. That represents a 5.8-percent decline. On a year-to-date basis, however, home sales are running 5.6 percent ahead of 2017’s record volume.

Houston real estate report

Home sales and rentals rebound and prices reach record highs

After a sluggish March, the Houston real estate market rebounded in April with a nearly seven percent jump in home sales and the highest average and median prices of all time. Consumers also kept the lease market humming with gains in the rental of single-family homes and townhomes/condominiums. According to the latest monthly report from the Houston Association of REALTORS® (HAR), 7,070 single-family homes sold in April versus 6,611 a year earlier. For the third straight month, the best-performing segment of the market consisted of homes priced in the $500,000 to $749,999 range, which shot up nearly 30 percent. The luxury market – those homes priced at $750,000 and above – rose almost five percent after being flat for two consecutive months. 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 5.3 percent to $240,000 and the average price climbed 5.2 percent to $305,092. 

Houston real estate update

Houston Real Estate Highlights in August
(* asterisk denotes that the “Harvey effect” has been removed):

  • Single-family home sales rose 7.6 percent year-over-year, with 5,844 units sold*;

  • Days on Market (DOM) for single-family homes declined slightly to 49 days;

  • Total property sales jumped 36.8 percent, with 9,978 units sold;

  • Total dollar volume increased 40.1 percent to $2.86 billion;

  • The single-family home median price rose 3.0 percent to $236,870, reaching an August high;

  • The single-family home average price also achieved an August record, rising 1.9 percent to $300,670;

  • Single-family homes months of inventory was at a 4.1-months supply, down from 4.3 months last August and equal to the national level;

  • Townhome/condominium sales rose 12.3 percent year-over-year, with 457 units sold in 2018 compared to 407 one year earlier*;

  • Leases of single-family homes rose 7.6 percent with the average rent up 3.4 percent to $1,926*;

  • Volume of townhome/condominium leases fell 8.6 percent with the average rent up 5.5 percent to $1,639*.

Townhouse, condominium in Houston

Townhouse/Condominium Update
Sales of townhomes and condominiums rose in August, with or without the “Harvey effect.” The traditional full-month comparison shows that 665 units sold versus 465 a year earlier, accounting for a 43.0 percent increase.

When isolating the August 1 - 24 time period, sales rose 12.3 percent year-over-year, with 457 units sold in 2018 compared to 407 one year earlier. The average price increased 5.4 percent to $207,185 and the median price rose 3.3 percent to $164,240. Inventory declined slightly from a 4.4-months supply to 4.3 months.

Houston Housing market data

This first set does not factor out the “Harvey effect”:

  • $1 - $99,999: increased 33.5 percent

  • $100,000 - $149,999: increased 8.0 percent

  • $150,000 - $249,999: increased 46.0 percent

  • $250,000 - $499,999: increased 46.0 percent

  • $500,000 - $749,999: increased 53.9 percent

  • $750,000 and above: increased 34.6 percent

This data set reflects the pre-Harvey (August 1 - 24) comparison:

  • $1 - $99,999: decreased 2.4 percent

  • $100,000 - $149,999: decreased 12.4 percent

  • $150,000 - $249,999: increased 7.3 percent

  • $250,000 - $499,999: increased 13.7 percent

  • $500,000 - $749,999: increased 16.7 percent

  • $750,000 and above: increased 15.4 percent

HAR also breaks out the sales figures for existing single-family homes. Existing home sales totaled 7,116 in August, an increase of 36.3 percent versus the same month last year when not removing the distortions caused by Hurricane Harvey. The average sales price increased 3.7 percent to $291,723 while the median sales price rose 2.7 percent to $225,000.

Houston single family for sale

Single-Family Homes Update

Sales of single-family homes jumped 9.1 percent in July, with 8,108 units sold across the greater Houston area compared to 7,433 a year earlier. On a year-to-date basis, home sales are 3.4 percent ahead of 2017’s record pace. Prices reached the highest levels ever for a July. The median price increased 5.9 percent to $243,500. The average price rose 2.4 percent to $305,910.

Days on Market (DOM), or the number of days it took the average home to sell, held steady at 48 days. Inventory registered a 4.2-months supply, down slightly from 4.3 months a year ago, but still at the highest level since August 2017

Houston housing market

July Monthly Market Comparison

Measurements of the Houston real estate market’s July trends were largely positive, with single-family home sales, total property sales, pricing and total dollar volume all up compared to July 2017. Month-end pending sales for single-family homes totaled 8,467, an 18.2 percent increase over last year. Total active listings, or the total number of available properties, fell 3.5 percent to 41,459. 

Single-family homes inventory remains constrained, reaching a 4.2-months supply in July, which is down fractionally from the 4.3-months supply a year earlier. For perspective, housing inventory across the U.S. stands at a 4.3-months supply, according to the latest report from the National Association of REALTORS® (NAR).

Houston for lease property

Lease Property Update

Consumer interest among lease properties slowed in July. Single-family home rentals declined 1.9 percent while leases of townhomes and condominiums were down 6.6 percent. The average rent for single-family homes rose 5.6 percent to $1,916 and the average rent for townhomes and condominiums increased 7.7 percent to $1,666.

Houston real estate in July 2018

Houston Real Estate Highlights in July

  • Single-family home sales rose 9.1 percent year-over-year, with 8,108 units sold;

  • Days on Market (DOM) for single-family homes remained unchanged at 48 days;

  • Total property sales increased 8.5 percent, with 9,559 units sold;

  • Total dollar volume jumped 11.4 percent to nearly $2.8 billion;

  • The single-family home median price rose 5.9 percent to $243,500, reaching a July high;

  • The single-family home average price also achieved a July record, rising 2.4 percent to $305,910;

  • Single-family homes months of inventory was at a 4.2-months supply, down fractionally from 4.3 months last July, but nonetheless at the highest level since August 2017;

  • Townhome/condominium sales rose 6.1 percent, with the average price up 6.9 percent to $215,110 and the median price up 9.3 percent to $165,000;

  • Leases of single-family homes fell 1.9 percent with the average rent up 5.6 percent to $1,916;

  • Volume of townhome/condominium leases dropped 6.6 percent with the average rent up 7.7 percent to $1,666.