Houston Housing market

(HAR report)Sales of all property types jumped 9.5 percent in September, totaling 8,430 units. This comes on the heels of two consecutive months of record-high total sales that broke the 10,000 mark for the first time – the highest being July with 10,444 units sold. Total dollar volume for the month of September climbed 10.8 percent to $2.4 billion.  

“I cannot recall a fall in Houston when home sales and rentals were quite this brisk,” said HAR Chair Shannon Cobb Evans with Better Homes and Gardens Real Estate Gary Greene. “Historically low interest rates and a strong overall local economy have drawn more buyers than usual to the market and kept Realtors like myself extremely busy. We remain on track for another record year.”

Freddie Mac this week reported an average 3.64 percent rate on 30-year, fixed-rate loans – down more than one percent from a year ago. Freddie Mac economists predict the fourth quarter of 2019 will average a 3.7 percent interest rate on 30-year, fixed-rate loans, with 2019 claiming a 4.0 percent average overall. Fannie Mae expects the year to average out at 3.9 percent, while the Mortgage Bankers Association predicts 3.8 percent.

Houston single family homes market

(HAR report)The median price of a single-family home (the figure at which half of the homes sold for more and half sold for less) reached the highest level ever for a September, climbing 4.7 percent to $244,000. The average price also achieved a September record, rising 1.5 percent to $298,947.

Buyers have had a more plentiful supply of homes from which to choose in 2019 compared to last year. In September, housing inventory edged up to a 4.1-months supply versus 4.0 months in September 2018. So far this year, the peak of inventory was reached in June and July when it registered a 4.3-months supply. 

Houston Housing market

HOUSTON — (October 9, 2019-HAR report) — Houston home sales registered the seventh positive month of 2019 in September as consumers continued to take advantage of low mortgage interest rates, keeping a market that normally slows down this time of year buzzing. According to the latest monthly report from the Houston Association of Realtors (HAR), sales of single-family homes across the Houston area totaled 7,035 in September. That is up 9.5 percent year-over-year and marks the second largest one-month sales volume of the year. On a year-to-date basis, home sales are running 3.8 percent ahead of 2018’s record volume. 

For the second month in a row, homes in the $250,000 to $500,000 range saw the greatest sales gains, jumping 18.7 percent compared to September 2018. That was followed by homes in the $500,000 to $750,000 range, which rose 12.6 percent. The luxury segment, which is comprised of homes priced from $750,000 and up, declined 2.6 percent.

Houston real estate for rent/sale highlights

Houston Real Estate Highlights in August(HAR report)

• Single-family home sales rose 3.9 percent year-over-year, with 8,679 units sold – the second biggest one-month sales volume of all time;

• On a year-to-date basis, single-family home sales are running 3.1 percent ahead of 2018’s record pace;

• Days on Market (DOM) for single-family homes edged up from 49 to 52 days;

• Total property sales rose 4.1 percent, with 10,375 units sold – the second greatest one-month total property sales volume ever and only the second time in Houston real estate history that the total has surpassed 10,000.

• Total dollar volume increased 6.6 percent to $3.1 billion;

• The single-family home median price rose 4.5 percent to $249,000, achieving an August high;

• The single-family home average price was up 3.4 percent to $312,727 – also a record high for an August;

• Single-family homes months of inventory reached a 4.2-months supply, up from 4.0 months last August and just slightly below the 4.3-months supply maintained in June and July. For comparison, the national housing inventory is also at a 4.2-months supply, according to NAR;

• Townhome/condominium sales fell 2.9 percent year-over-year, with 641 units sold. The average price was flat at $209,075 and the median price rose 3.9 percent to $172,500;

• Single-family home rentals increased 7.6 percent with the average rent unchanged at $1,914;

• Volume of townhome/condominium leases climbed 6.3 percent with the average rent also unchanged at $1,645.

Townhouse/Condominium for sale in Houston

Townhouse/Condominium Update(HAR report)

The townhouse and condominium segment continues to experience sales ups and downs throughout 2019. After a 14.6 percent year-over-year increase in July, August sales fell 2.9 percent, with 641 units sold compared to 660 in August 2018. The average price was unchanged at $209,075 while the median price rose 3.9 percent to $172,500. Inventory grew from a 4.2-months supply to 4.7 months.

House days on market in Houston(HAR report)

Days on Market (DOM), or the number of days it took the average home to sell, was 52 compared to 49 a year ago. Inventory expanded to a 4.2-months supply. That is up from 4.0 months year-over-year and is just under the 2019 peak of 4.3 months reached in June and July. It matches the national inventory of 4.2 months reported by NAR.

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

• $1 - $99,999: decreased 18.8 percent

• $100,000 - $149,999: decreased 16.7 percent

• $150,000 - $249,999: increased 0.9 percent

• $250,000 - $499,999: increased 14.7 percent

• $500,000 - $749,999: increased 7.0 percent

• $750,000 and above: decreased 3.0 percent

HAR also breaks out sales activity for just existing single-family homes. Existing home sales totaled 7,251 in August, up 3.9 percent versus the same month last year. The average sales price rose 4.0 percent to $301,695 while the median sales price increased 4.7 percent to $235,500

Houston for sale/rent single family homes

Single-Family Homes Update(HAR report)

August was another strong month for single-family home sales, which rose 3.9 percent with 8,679 units sold across greater Houston compared to 8,355 a year earlier. That represents the second largest one-month sales volume of all time. On a year-to-date basis, sales are running 3.1 percent ahead of 2018’s record pace.

Home prices climbed to the highest levels ever for an August. The median price was $249,000, up 4.5 percent from August 2018. The average price rose 3.4 percent to $310,409.

Houston housing market Comparison

August Monthly Market Comparison(HAR report)

The Houston housing market registered across-the-board gains in August. Single-family home sales, total property sales, pricing, total dollar volume and inventory all increased compared to August 2018. Month-end pending sales of single-family homes totaled 8,547, a 16.8 percent increase over last year. Total active listings, or the total number of available properties, rose 8.2 percent to 45,062.

Single-family homes inventory expanded to a 4.2-months supply in August. That compares to 4.0 months a year earlier and is only slightly below the 2019 peak of 4.3-months supply reached in June and July. For perspective, housing inventory across the United States also currently stands at a 4.2-months supply, according to the latest National Association of Realtors (NAR) report.

Lease/Rent property in Houston

Lease Property Update(HAR report)

August proved a solid month for Houston-area rental properties. Single-family home rentals jumped 7.6 percent while rentals of townhomes and condominiums rose 6.3 percent. The average rent for single-family homes was flat at $1,914 and the average rent for townhomes and condominiums was also unchanged at $1,645.

Houston for sale/rent single family homes

HAR report:The median price of a single-family home (the figure at which half of the homes sold for more and half sold for less) reached the highest level ever for an August, climbing 4.5 percent to $249,000. The average price also achieved an August record, rising 3.4 percent to $310,409.

Housing inventory still remains ahead of 2018 levels. It reached a 4.2-months supply in August compared to 4.0 months a year earlier. So far in 2019, June and July marked the peak of inventory – a 4.3-months supply. Robust inventory and mortgage interest rates currently averaging 3.49 percent (according to Freddie Mac) have created a favorable climate for home buyers and paved the way for one of the strongest summers in Houston real estate history.

Sales of all property types increased 4.1 percent in August, totaling 10,375 units. That marks the second highest one-month volume of all time. The record for total property sales in a single month was 10,444 set just last month, in July 2018, which also was the first time that figure broke the 10,00 mark. Total dollar volume for the month climbed 6.6 percent to $3.1 billion.  

“This has been one of the hottest summers in Houston history, both in terms of temperatures and home sales,” said HAR Chair Shannon Cobb Evans with Better Homes and Gardens Real Estate Gary Greene. “The Houston real estate market typically slows a bit once school starts and we get into fall, but with interest rates as low as they’ve been and a steadily growing supply of homes, it’s possible that sales don’t let up until closer to the holidays. The rental segment has also been extremely active and looks to remain that way a while longer.”