Houston Housing market

HAR Report:Sales of all property types totaled 11,153, up 18.3 percent from June 2019. Total dollar volume for the month increased 15.1 percent to $3.3 billion. Leases of single-family homes were another bright spot in HAR’s monthly report, climbing more than 15 percent.

 “Coronavirus has driven the Houston housing market into uncharted territory, however, we do know for certain that consumers have shown unwavering interest in real estate since the pandemic began,” said HAR Chairman John Nugent with RE/MAX Space Center. “HAR’s early introduction of virtual open houses and virtual showings has enabled consumers to forge ahead with house-hunting plans without compromising health and safety, and historically low interest rates have remained a strong incentive to buy.”

For the latest weekly report on housing market trends throughout the greater Houston area, please see the HAR Weekly Activity Snapshot for the week ending July 6, available HERE as a downloadable PDF file.

Houston Housing market

HOUSTON, HAR Report — (July 8, 2020) — A flurry of homes going under contract in May after COVID-19-related stay-at-home orders expired led to a surge of closings in June, driving home sales volumes back up to levels considered more normal for summertime in Houston – and even beyond 2019’s record pace. However, renewed coronavirus concerns, stemming from a spike in cases across greater Houston and in other parts of Texas, may bring this taste of normalcy to an end by the fall.

According to the latest Market Update from the Houston Association of Realtors (HAR), 9,328 single-family homes sold in June compared to 8,063 a year earlier. That translated to a 15.7 percent jump – a strong rebound from two straight months of declines brought on by coronavirus and ongoing strains in the energy industry.

Homes priced between $250,000 and $500,000 led the way among all housing segments, soaring 28.3 percent year-over-year. The second-best performer consisted of homes in the $500,000 to $750,000 range, which jumped 18.6 percent. Year-to-date sales are now on par with 2019’s record pace after lagging by 4.3 percent in May.

The single-family home median price increased 3.6 percent to an historic high of $262,000 while the average price dipped less than one percent to $319,881.

Houston Housing market highlights

Houston Real Estate Highlights in May

  • Single-family home sales fell 20.2 percent year-over-year, with 6,671 units sold, marking the second straight month of declines fueled by the COVID-19 pandemic;

  • The Days on Market (DOM) figure for single-family homes grew from 54 to 58 days;

  • Total property sales dropped 20.7 percent, with 7,917 units sold;

  • Total dollar volume dove 25.9 percent to $2.23 billion;

  • The single-family home average price fell 7.4 percent to $298,199, the first decline since January 2018;

  • The single-family home median price was statistically flat at $249,000;

  • Single-family homes months of inventory was at a 3.5-months supply, down from 4.1 months last May and below the national inventory level of 4.1 months;

  • Townhome/condominium sales dropped 36.0 percent, with the average price down 2.3 percent to $206,146 and the median price up 2.9 percent to $175,000;

  • Single-family home rentals jumped 11.9 percent with the average rent down 2.8 percent to $1,822;

  • Volume of townhome/condominium leases fell 4.6 percent with the average rent down 4.6 percent to $1,586.

Townhouse/Condominium for sale in Houston

Townhouse/Condominium Update(HAR Report):

Townhome and condominium sales, which took a hit in April along with the single-family segment, experienced another dramatic fall in May, plunging 36.0 percent. A total of 417 units sold compared to 652 one year earlier. The average price tumbled 2.3 percent to $206,146 while the median price rose 2.9 percent to $175,000. Inventory grew slightly from a 4.5-months supply to 4.6 months.

Houston Housing market

(HAR Report): Days on Market (DOM), or the number of days it took the average home to sell, rose slightly from 54 to 58. Inventory registered a 3.5-months supply compared to 4.1 months a year earlier and is below the current national inventory level of 4.1 months recently reported by NAR.

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

  • $1 - $99,999: decreased 37.7 percent

  • $100,000 - $149,999: decreased 26.1 percent

  • $150,000 - $249,999: decreased 16.2 percent

  • $250,000 - $499,999: decreased 15.3 percent

  • $500,000 - $749,999: decreased 29.0 percent

  • $750,000 and above: decreased 56.3 percent

HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 5,114 in May, down 28.2 percent compared to the same month last year. The average sales price fell 8.9 percent to $287,606 while the median sales price dropped 2.1 percent to $235,000.

Houston for sale/rent single family homes

Single-Family Homes Update(HAR Report)

Single-family home sales fell 20.2 percent in May, with 6,671 units sold throughout greater Houston compared to 8,359 a year earlier. That marked the second straight monthly decline as a result of the COVID-19 pandemic with additional impact from the strained energy industry. On a year-to-date basis, sales now lag behind last year’s record pace by 4.3 percent. Pricing saw its first declines since January of 2018. The average price dropped 7.4 percent to $298,199. The median price was down a fractional 0.4 percent to $249,000.

Houston housing market Comparison

May Monthly Market Comparison(HAR REPORT)

The lingering coronavirus pandemic layered on top of strains in the energy sector weighed heavily on the Houston real estate market for a second consecutive month in May. Single-family home sales, total property sales, pricing and total dollar volume all fell compared to May 2019. Pending sales, however, jumped 23.1 percent. Total active listings, or the total number of available properties, was down 8.3 percent.

With a slowdown in new listings to the marketplace, single-family homes inventory shrank, registering a 3.5-months supply in May versus 4.1-months a year earlier. For perspective, housing inventory across the U.S. stands at a 4.1-months supply, according to the most recent report from the National Association of Realtors (NAR).

Houston COVID-19 update

TMC Report and UPDATE | July 9, 2020, 9 p.m.: People are dying at home from COVID-19 before help arrives, according to information from Houston’s health authority and the city fire chief as well as a new ProPublic/NBC News analysis.

“There’s a distinct possibility that there is an undercounting of the COVID-related deaths. In order for a death to be recorded as COVID-related, the death certificate needs to have something from the physician indicating a COVID-related illness,” David Persse, M.D., Houston’s health authority, said today at Houston Mayor Sylvester Turner’s news conference.

The Houston Fire Department has been finding people not breathing and not having a pulse. Some are DOA, dead on arrival, while others can be resuscitated.

Three days ago, HFD had 18 DOA calls—the most in one day all year, said Houston Fire Department Chief Samuel Peña.

“They’re having critical medical emergencies and there is nothing we can do by the time we get to the scene,” Peña said. “Do not wait to call 911 if you are having cardiac issues, respiratory issues, signs and symptoms of a stroke.”

The fire chief noted that fewer firefighters are in quarantine, but the agency is running at a heightened 1,100-plus calls a day.

new ProPublica/NBC News report reveals that many COVID-related deaths in the Bayou City are people who never receive medical care, but end up at the morgue where their infections are counted among the COVID-19 deaths.

“In Houston, one of the nation’s fastest-growing coronavirus hot spots, more residents are dying before they can make it to a hospital. Medical examiner data shows that an increasing number of these deaths are the result of COVID-19,” the story said. “In the Houston area, the trend can be seen in autopsies performed by the Harris County Institute of Forensic Sciences. In May, among people who had died unexpectedly at home, the county medical examiner attributed just six deaths to COVID-19. In June, the number jumped to 19, with most of those cases coming in the second half of the month, coinciding with a surge in the number of confirmed coronavirus cases locally. Because the medical examiner only performs autopsies in a fraction of cases, these numbers are not comprehensive.

More broadly, Houston emergency responders have also seen an increase in deaths during cardiac arrest calls.”

Houston Mayor Sylvester Turner wore a Census 2020 mask today at his news conference to emphasize the continuing need for more people to respond to the decennial count.

“With all of the federal dollars and resources that we need to combat the pandemic, quite frankly, it’s all tied to the Census,” he said.

Houston’s response—about 52.5 percent of the city’s estimated 2.32 million residents—falls below the average national response, which is above 60 percent, according to the most recent data.

“I want to encourage people to take the time to respond to the census—2020Census.gov—online. Nine questions. It doesn’t take very long at all,” the mayor said. “For each person who goes unaccounted, Houston loses about $1,500 … per year in government funds for the next 10 years. So, even a 1 percent undercount could cost the City of Houston $250 million in federal dollars. … We need that money for education, housing, health care—and representation for the Census is very important when you are trying to fight COVID-19.”

The Houston Health Department is reporting 412 new COVID-19 cases, bringing the city’s total to 26,012, with five new deaths for 250 fatalities in all. The new deaths include a Hispanic male in his 30s with underlying health conditions.

“The COVID-19 virus in the city, and quite frankly, in the state is out of control. What we do today and over the next few weeks is critical to getting this virus back in a manageable state,” Turner said, adding that the goal is to bring the number of new cases reported daily in the city to 300 or fewer. “That makes it then much more practical for us to engage with our contact tracing.”

New free testing sites will be opening in Second Ward and the Alief area soon.

Additionally, the ongoing saga of the Republican Party of Texas v. Turner—tension over a state GOP convention scheduled next week in Houston that was canceled Wednesday by the city because of the coronavirus transmission risk—became a lawsuit Thursday. Later in the day, state District Judge Larry Weiman denied the party’s request to block the city from canceling the contract. In a statement, the party announced its intention to “proceed in filing its appeal directly to the Texas Supreme Court given the time sensitivity of the matter as the Convention was scheduled to begin its committee meetings on Monday at the George R. Brown Convention Center.” — Cindy George

Houston Housing market for rental homes

(HAR report):Consumers snapped up rental homes in strong numbers in May. Leases of single-family homes surged 11.9 percent year-over-year. However, leases of townhomes and condominiums slid 4.6 percent. The average rent for single-family homes was down 2.8 percent to $1,822 while the average rent for townhomes and condominiums was fell 4.6 percent to $1,586.

Houston COVID-19 update

UPDATE | July 7, 2020, noon(TMC Report): The U.S. is set to exceed 3 million cases of COVID-19, according to a STAT News tracker, which draws datasets from more than 15 sources. The 3 million mark comes nearly one month after the case count exceeded 2 million in the U.S. Meanwhile, Texas is reporting a 13.5 percent positivity rate as of July 5, and the City of Houston reports 19,343 active cases, with 239 deaths.

The New York Times reported this morning that the United States plans to pay $1.6 billion for the development of 100 million doses of a vaccine for COVID-19 disease. The deal, made by the Trump administration with Maryland-based vaccine development company Novavax, is part of the administration’s “Operation Warp Speed”—which aims to make treatments for COVID-19 available to the American public as soon as possible. According to the New York Times report, Novavax has never before brought a product to market.

The Texas Medical Association recently released a chart rating activities based on their risk for contracting COVID-19 disease. Opening the mail ranked least risky, while activities such as going to a bar, attending a religious service with more than 500 worshipers and going to a sports stadium or large concert were among the riskiest behaviors. Moderate risk activities included backyard barbecues, sending kids to camp or daycare and going to the beach.