Houston Housing market

HOUSTON(HAR Report)— (November 11, 2020) — Even with an ever-dwindling supply of housing and a lingering pandemic, consumers bought homes at a frenzied pace in October, keeping the Houston real estate market on the path to a record year. The high end of the market once again registered the greatest sales volume increase, with mid-range homes also attracting heavy activity.

According to the latest Houston Association of Realtors (HAR) Market Update, 9,287 single-family homes sold in October compared to 7,187 a year earlier. That represents a 29.2 percent increase and marks the fifth straight month of positive sales.

Houston real estate Highlights

Houston Real Estate Highlights in September(HAR Report)

  • Single-family home sales increased for a fourth consecutive month, rocketing 29.1 percent year-over-year with 9,101 units sold;

  • The Days on Market (DOM) figure for single-family homes lowered from 56 to 51 days;

  • Total property sales shot up 31.9 percent with 11,137 units sold;

  • Total dollar volume soared 43.6 percent to $3.4 billion;

  • The single-family home median price rose 8.3 percent to $265,000 – the highest median price for a September;

  • The single-family home average price increased 10.1 percent to $329,801 – the highest average price for a September;

  • Single-family homes months of inventory registered a 2.5-months supply, down from 3.9 months last September and below the national inventory level of 3.0 months. The last time inventory was that low was in December 2014;

  • Townhome/condominium sales jumped 21.3 percent, with the average price up 7.0 percent to $214,337 and the median price up 4.4 percent to $177,500;

  • Single-family home rentals were down 3.9 percent with the average rent up 5.5 percent to $1,940;

  • Townhome/condominium leases were flat with the average rent up 6.5 percent to $1,690.

Houston Housing market segment

(HAR Report): Broken out by housing segment, September sales performed as follows:

  • $1 – $99,999: decreased 23.1 percent

  • $100,000 – $149,999: decreased 22.3 percent

  • $150,000 – $249,999: increased 18.2 percent

  • $250,000 – $499,999: increased 46.7 percent

  • $500,000 – $749,999: increased 58.1 percent

  • $750,000 and above: increased 81.5 percent

HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 7,454 in September, up 31.6 percent compared to the same month last year. The average sales price rose 13.4 percent to $325,683 while the median sales price jumped 10.9 percent to $255,000.

Houston Housing days in the market

(HAR Report): Days on Market (DOM), or the number of days it took the average home to sell, dropped from 56 to 51. Despite a 7.0 percent increase in new listings in September, inventory registered a 2.5-months supply compared to 3.9 months a year earlier and is at levels last seen nearly six years ago, in December 2014. It is also below the current national inventory level of 3.0 months recently reported by NAR.

Houston single family homes for sale/rent

Single-Family Homes Update(HAR Report):

Single-family home sales jumped 29.1 percent in September with 9,101 units sold throughout the greater Houston area compared to 7,050 a year earlier. On a year-to-date basis, sales are outpacing last year’s historic volume by 5.4 percent. Strong sales volume at the high end of the market once again pushed pricing upward. The single-family home median price rose 8.3 percent to $265,000 while the average price increased 10.1 percent to $329,801. Both figures are historic highs for a September.

Houston housing market Comparison

(HAR Report): The sluggish pace of new listings combined with another month of strong sales drove single-family homes inventory down to a 2.5-month supply versus 3.9 months a year earlier. The last time inventory dropped that low was in December 2014. For September, however, new listings saw a 7.0 percent year-over-year increase. Housing inventory nationally stands at a 3.0-months supply, according to the National Association of Realtors (NAR).

Houston housing market Comparison

September Monthly Market Comparison(HAR Report):

Despite the ongoing coronavirus pandemic, home buyers were out in force in September, still taking advantage of historically low mortgage interest rates even as the selection of available housing dwindled. Houston real estate saw its fourth consecutive month of positive sales. On a year-to-date basis, the market is running 5.4 percent ahead of 2019’s record pace. Single-family home sales, total property sales and total dollar volume all rose compared to September 2019. Pending sales jumped 43.7 percent. However, total active listings – or the total number of available properties – fell 25.4 percent.

Houston Housing market

(HAR Report): Sales of all property types totaled 11,137 – up 31.9 percent from September 2019. Total dollar volume for the month surged 43.6 percent to $3.4 billion. The lease market cooled in September, with declines in single-family housing while townhouse/condo leases were unchanged year-over-year.

 “September sales defied expectations with many Realtors busier than ever, however we anticipate that the pace of sales will soon slow down since there just aren’t a whole lot of homes out there for consumers to buy,” said HAR Chairman John Nugent with RE/MAX Space Center. “Houston real estate has been performing so well, as a matter of fact, that our HAR membership now exceeds 41,000, so a lot of folks are energized about our flourishing industry.”