Houston Housing market

HOUSTON,HAR Report — (February 10, 2021) — Even as the supply of homes across the greater Houston area continues to shrink, homebuyers were out in force in January, snapping up properties that were still on the market and extending the breakneck momentum with which 2020 ended. The luxury housing segment drew the strongest sales activity during the first month of the new year, with homebuyers also driving brisk sales among mid-range homes.

According to the latest Houston Association of Realtors (HAR) Market Update, 6,088 single-family homes sold in January compared to 4,769 a year earlier. That accounted for a 27.7 percent increase and marked the eighth straight month of positive sales.

Homes priced at $750,000 and above rocketed 73.9 percent compared to January 2020. That was followed by the $500,000 to $750,000 housing segment, which jumped 70.4 percent year-over-year. Homes between $250,000 and $500,000, which comprise the market’s biggest share of sales, shot up 61.9 percent. The single-family home average price climbed 12.5 percent to a January high of $326,063 while the median price increased 12.1 percent to $263,500 – also a January high.

Houston real estate Highlights

Houston Real Estate Highlights for December and Full-Year 2020(HAR Report):

  • Despite a devastating global pandemic, 2020 proved to be a record year for Houston real estate with 96,151 single-family homes sold versus 86,996 in 2019, the last record-setting year. That represents an increase of 10.5 percent;

  • Total dollar volume for full-year 2020 rose 18.1 percent to a record-setting $35.3 billion;

  • December single-family home sales jumped 25.5 percent year-over-year with 9,652 units sold;

  • Total December property sales increased 27.2 percent to 11,572 units;

  • Total dollar volume for December soared 39.3 percent to $3.9 billion;

  • At $273,443, the single-family home median price rose 8.7 percent, establishing a new record high;

  • The single-family home average price climbed 11.4 percent to an all-time high of $347,164;

  • Single-family homes months of inventory narrowed sharply to a record low 1.9-months supply;

  • Townhome/condominium sales rose 10.9 percent year-over-year with the average price unchanged at $227,856 and the median price down 2.7 percent to $180,000;

  • Leases of single-family homes fell 14.5 percent with average rent up 7.5 percent to $1,899;

  • Leases of townhomes/condominiums climbed 13.1 percent with average rent up 3.6 percent to $1,641.

Houston townhouse/condominium for sale/rent report

Townhouse/Condominium Update(HAR Report)

Townhome and condominium sales staged a strong finish to a year that, as with all other housing types, experienced sharp declines in April and May as a result of the COVID-19 pandemic. December volume rose 10.9 percent with 659 units sold versus 594 a year earlier. The average price was statistically flat at $227,856 while the median price fell 2.7 percent to $180,000. Inventory dwindled from a 3.9-months supply to 3.3 months.

Houston Housing market segment

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

  • $1 - $99,999: decreased 15.7 percent

  • $100,000 - $149,999: decreased 20.2 percent

  • $150,000 - $249,999: increased 13.2 percent

  • $250,000 - $499,999: increased 44.6 percent

  • $500,000 - $749,999: increased 80.8 percent

  • $750,000 and above: increased 54.0 percent

HAR also breaks out the sales figures for existing single-family homes. Existing home sales totaled 7,647 in December. That is up 31.6 percent versus the same month last year. The average sales price rose 14.2 percent to $340,400 while the median sales price increased 12.8 percent to $265,000.

Houston for sale/rent single family homes

December Single-Family Homes Update(HAR Report)

Single-family home sales totaled 9,652, a 25.5 percent increase from December 2019. That marked the seventh consecutive month that sales were on the rise. The median price rose 8.7 percent to an all-time high of $273,443. The average price increased 11.4 percent to $347,164 – another record-setting figure. Days on Market (DOM), or the number of days it took the average home to sell, dropped from 63 to 46.

Houston housing market Comparison

December Monthly Market Comparison(HAR Report):

The Houston housing market generated positive readings across the board in December with the exception of active listings and inventory. Single-family home sales, total property sales, total dollar volume and pricing were all up compared to December 2019. Month-end pending sales for single-family homes totaled 7,469, an increase of 40.5 percent versus one year earlier. Total active listings, or the total number of available properties, fell 28.6 percent from a year earlier to 26,821.

Single-family homes inventory narrowed dramatically from a 3.2-months supply to 1.9 months. For perspective, housing inventory across the U.S. currently stands at a 2.3-months supply, according to the latest National Association of Realtors (NAR) report.

Houston Housing market

(HAR Report):Sales increased each month for the remainder of 2020, but without new listings to backfill that supply, inventory by year’s end was down to its lowest level in history – a 1.9-months supply. Months of inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. A 6.0-months supply has traditionally been considered to constitute a “balanced market.”

New real estate records were set throughout the year, with July going down as Houston’s greatest one-month sales volume of all time – 10,815 single-family units sold. A record high average price of $347,164 and record high median price of $273,443 were achieved in December.

By the time the books were closed on December transactions, a record 96,151 single-family homes had sold across greater Houston in 2020. That represents an increase of 10.5 percent from the previous record of 86,996 in 2019.

On a year-to-date basis, the average price rose 5.9 percent to $324,069 while the median price increased 6.1 percent to $260,000. Total dollar volume for full-year 2020 jumped 18.1 percent to a record-setting $35.3 billion.

Houston Housing market

2020 Annual Market Comparison(HAR Report)

The Houston real estate market entered 2020 carrying positive momentum from 2019, but faced shrinking inventory resulting from a combination of brisk sales and a dwindling supply of new listings. There were also lingering concerns about possible fallout from widespread layoffs within the energy industry. Nevertheless, sales held to positive territory for the first three months of the year until the COVID-19 pandemic struck, sending sales volumes plummeting in April and May as stay-at-home orders temporarily halted real estate activity. The designation of real estate as an ‘essential service’ and HAR’s rollout of virtual technology that enabled consumers to remotely tour listed properties helped the market stage a turnaround in June

Houston single family homes

HAR Report: Single-family home sales for the month of December jumped 25.5 percent compared to December 2019. The strongest sales activity took place among homes priced between $500,000 and $750,000, which rocketed 80.8 percent. The luxury market, consisting of homes priced at $750,000 and up, came in second place, climbing 54.0 percent. That was followed by homes in the $250,000 to $500,000 range, which rose 44.6 percent.

Prices of single-family homes established new December highs. The median price – the figure at which half of the homes sold for more and half sold for less – rose 8.7 percent to $273,443 while the average price rose 11.4 percent to $347,164..