Houston Housing market

“We entered 2018 cautiously optimistic that the Houston real estate market would continue the resilience it showed after Hurricane Harvey, but no one that I know anticipated it being a record year,” said HAR Chair Shannon Cobb Evans with Heritage Texas Properties. “Now, as we look ahead to the new year, federal workers are on edge about the ongoing government shutdown and how that might hurt their cash flow, which could affect housing. And our market is still challenged in terms of housing inventory, which is something that truly needs to improve in 2019 to ensure that real estate remains a vibrant player in the overall Houston economy."

House for sale in Houston

HOUSTON — (January 9, 2019) — The Houston real estate market set new records in 2018 despite uncertainty across the region when the year began, with many survivors of Hurricane Harvey still rebuilding their homes and lives. Single-family home sales for the full year surpassed 2017’s record volume by nearly four percent. However, as 2019 gets underway, housing inventory remains constrained – still sitting below its more balanced pre-Harvey levels.

According to the Houston Association of Realtors’ (HAR) 2018 annual report, single family home sales rose 3.8 percent to 82,177 while sales of all property types totaled 98,323, a 3.7-percent increase over 2017’s record volume. Total dollar volume for full-year 2018 jumped 21.5 percent to a record-breaking $28 billion.

Houston real estate

Houston Real Estate Highlights in November

  • Single-family home sales fell 2.0 percent year-over-year, with 6,159 units sold;

  • On a year-to-date basis, home sales are up 4.6 percent and on track for breaking 2017’s record performance when December data are compiled;

  • Days on Market (DOM) for single-family homes was 60 versus 62 a year earlier;

  • Total property sales were statistically flat, with 7,400 units sold;

  • Total dollar volume rose 3.9 percent to $2.1 billion;

  • The single-family home median price climbed 4.4 percent to $235,000, a November high;

  • The single-family home average price also achieved a November record, rising 4.3 percent to $295,084;

  • Single-family homes months of inventory reached a 3.9-months supply, up from 3.6 months last November, but below the national supply of 4.3 months reported by NAR;

  • Townhome/condominium sales dropped 2.8 percent, with the average price up 9.0 percent to $213,043 and the median price up 4.5 percent to $165,000;

  • Leases of single-family homes jumped 15.3 percent with the average rent down 1.3 percent to $1,743;

  • Volume of townhome/condominium leases rose 0.6 percent with the average rent up 0.5 percent to $1,505.

Houston Housing Segment

Broken out by housing segment, November sales performed as follows:

  • $1 - $99,999: decreased 25.3 percent

  • $100,000 - $149,999: decreased 24.3 percent

  • $150,000 - $249,999: increased 2.3 percent

  • $250,000 - $499,999: increased 7.2 percent

  • $500,000 - $749,999: increased 1.9 percent

  • $750,000 and above: increased 12.3 percent

Houston for sale/rent single family homes

Single-Family Homes Update

Sales of single-family homes declined 2.0 percent in November, as 6,159 units sold across the greater Houston area compared to 6,285 a year earlier. However, on a year-to-date basis, sales volume is running 4.6 percent ahead of 2017’s record pace and is expected to remain in record territory as we close out 2018. Prices reached the highest levels ever for a November. The median price increased 4.4 percent to $235,000 while the average price rose 4.3 percent to $295,084. Days on Market (DOM), or the number of days it took the average home to sell, improved to 60 from 62 a year earlier. Inventory registered a 3.9-months supply, up slightly from 3.6 months a year ago.

Houston Housing market

November Monthly Market Comparison

The Houston real estate market had a largely positive performance in November and remains on track to set new sales records when the books are closed on 2018. As consumers turned their attention to holiday shopping, single-family home sales fell slightly and total property sales were statistically flat compared to November 2017; total dollar volume and pricing were up. Month-end pending sales for single-family homes totaled 6,052, which represents a 5.8 percent increase over last year. Total active listings, or the total number of available properties, climbed 8.9 percent to 40,530. Single-family homes inventory saw some growth in November, reaching a 3.9-months supply versus a 3.6-months supply a year earlier. For perspective, housing inventory nationally stands at a 4.3-months supply, according to the latest report from the National Association of Realtors® (NAR).

Houston lease properties

Lease Property Update

Consumers kept Houston’s lease market humming in November. Single-family home rentals soared 15.3 percent while leases of townhomes and condominiums rose 0.6 percent. The average rent for single-family homes declined 1.3 percent to $1,743 while the average rent for townhomes and condominiums edged up 0.5 percent to $1,505.

Houston Housing market

“The Houston housing market remains on track for another record year, which was an almost unimaginable concept when the year began, on the heels of so much devastation from Hurricane Harvey,” said HAR Chair Kenya Burrell-VanWormer with JPMorgan Chase. “As 2018 draws to a close, we see slow but steady growth in the supply of housing as well as a strong job market, which together make for a healthy real estate climate.”