News
Single-Family Homes Update
Sales of single-family homes fell 5.8 percent in September, with 6,548 units sold across the greater Houston area compared to 6,953 a year earlier. However, on a year-to-date basis, home sales are 5.6 percent ahead of 2017’s record pace.
Prices reached the highest levels ever for a September. The median price increased a fractional 0.2 percent to $232,500. The average price rose 1.7 percent to $295,765.
Single-family homes inventory remains constrained, reaching a 4.0-months supply in September versus the 3.9-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).
September Monthly Market Comparison
Measurements of the Houston real estate market’s September trends were mixed, with single-family home sales, total property sales and total dollar volume all down compared to September 2017, and pricing up slightly. Month-end pending sales for single-family homes totaled 6,630, a 9.0 percent increase over last year. Total active listings, or the total number of available properties, climbed 5.7 percent to 41,560.
Lease Property Update
Activity among lease properties was down sharply in September. Single-family home rentals fell 35.4 percent while leases of townhomes and condominiums dropped 44.5 percent. With the decline in volume came a decline in rents. The average rent for single-family homes slid 4.0 percent to $1,812 while the average rent for townhomes and condominiums dipped 1.0 percent to $1,584.
The employment landscape across Houston remains robust and has served as a solid driver for real estate throughout 2018. In the October 2018 edition of The Economy at a Glance, the Greater Houston Partnership (GHP) reported that metro Houston created 110,200 jobs in the 12 months ending August 2018. That is a 3.7 percent increase and the strongest 12-month pace in more than three years
September sales of all property types totaled 7,842, a 4.4-percent decrease over the same month last year. Total dollar volume was down 3.5 percent at $2.2 billion.
“With tight inventory, rising interest rates and families focused on back-to-school, it wasn’t a huge surprise to see market activity slow down at this time,” said HAR Chair Kenya Burrell-VanWormer with JPMorgan Chase. “The Houston economy is strong. As we head into the fall months, it will definitely take a healthy supply of homes and some pricing moderation to keep prospective buyers engaged in the market.”
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.
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 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 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.
