News
Lease Property Update(HAR Report):
Consumer demand for lease properties waned in May while rent figures rose. Single-family lease homes fell 26.8 percent year-over-year and leases of townhomes and condominiums declined 3.5 percent. The average rent for single-family homes jumped 10.6 percent to a record $2,025 while the average rent for townhomes and condominiums increased 8.5 percent to $1,716.
(HAR Report): Homes priced from $750,000 and above led the way in May sales volume, shattering all previous measurements with a whopping 291.0 percent year-over-year increase. That was followed by the $500,000 to $750,000 segment, which rocketed 166.0 percent. This unprecedented surge in high-dollar homebuying is responsible for pushing pricing to record-setting levels. The single-family home average price rose 29.7 percent to $387,105 and the median price increased 21.7 percent to $304,000.
Sales of all property types totaled 12,100 – the second highest volume of all time. That is up 55.5 percent from May 2020. Total dollar volume for the month soared 100.5 percent to $4.4 billion.
“We are witnessing the most energized Houston real estate market in history,” said HAR Chairman Richard Miranda with Keller Williams Platinum. “Sellers maintain the upper hand, and buyers are not just meeting their demands. They are exceeding them, as we hear endless accounts of offers coming in that are thousands of dollars above list price. It’s difficult to predict how and when this incredible housing run will end.”
HOUSTON,HAR Report — (June 9, 2021) — Houston area home sales set new records in May as consumers took advantage of historically low interest rates in snapping up an ever-dwindling supply of properties for sale. What resulted was a nearly 50 percent jump in sales volume compared to the same month last year, when real estate was still in the process of recovering from coronavirus-related lockdown orders. Limited supply, strong buyer demand and increased construction costs all contributed to record high home prices.
According to the latest Houston Association of Realtors (HAR) Market Update, single-family homes sales surged 48.2 percent compared to last May, with 9,702 units sold versus 6,546 a year earlier. That marks the greatest one-month year-over-year sales volume increase of all time and is the market’s twelfth consecutive positive month of sales. On a year-to-date basis, home sales are leading 2020’s record pace by 29.5 percent.
Houston Real Estate Highlights in April(HAR Report):
Single-family home sales increased for the eleventh consecutive month, up a dramatic 47.4 percent year-over-year with 9,105 units sold;
The Days on Market (DOM) figure for single-family homes dropped from 58 to 40;
Total property sales rose 58.3 percent with 11,348 units sold;
Total dollar volume increased 85.9 percent to about $4.0 billion;
The single-family average price reached a record high, rising 20.0 percent to $371,854;
The single-family median price climbed 17.6 percent to $295,000 – also a record high;
Single-family homes months of inventory registered an historic low 1.4-months supply, down from 3.4 months year-over-year and below the national inventory of 2.1 months;
On a year-to-date basis, single-family homes sales are running 24.4 percent ahead of 2020’s record pace.
Townhome/condominium sales shot up 112.7 percent and reached record-level pricing with the average price up 8.8 percent to $246,940 and the median price up 11.0 percent to $200,000;
Single-family home rentals fell 3.4 percent with the average rent up 11.0 percent to $1,960;
Townhome/condominium leases rose 15.1 percent with the average rent up 8.0 percent to $1,688.
Townhouse/Condominium Update(HAR Report):
Sales of townhouses and condominiums increased for the eighth consecutive month in April, rocketing 112.7 percent with 787 closed sales versus 370 a year earlier. Pricing reached record highs with the average price increasing 8.8 percent to $246,940 and the median price climbing 11.0 percent to $200,000. Inventory fell from a 4.4-months supply to 2.8 months
(HAR Report): The time it took to sell a home fell by more than two weeks versus April 2020. Days on Market (DOM) went from 58 to 40. Due to strong buyer demand and surging home sales, inventory registered a record low 1.4-months supply compared to 3.4 months a year earlier. That figure is unchanged from March 2021 and is below the current national inventory level of 2.1 months recently reported by NAR.
Broken out by housing segment, April sales performed as follows:
$1 - $99,999: decreased 27.6 percent
$100,000 - $149,999: decreased 23.7 percent
$150,000 - $249,999: increased 5.1 percent
$250,000 - $499,999: increased 80.6 percent
$500,000 - $749,999: increased 132.2 percent
$750,000 and above: increased 164.3 percent
HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 7,340 in April, up 54.0 percent compared to the same month last year. The average sales price jumped 24.5 percent to $372,884 while the median sales price climbed 23.6 percent to $293,000.
Single-Family Homes Update(HAR Report):
Single-family home sales surged 47.4 percent in April with 9,105 units sold across the greater Houston area compared to 6,175 a year earlier. Heavy sales volume among homes at the high end of the market boosted pricing to record highs. The single-family home average price climbed 20.0 percent to $371,854 while the median price rose 17.6 percent to $295,000.
April Monthly Market Comparison(HAR Report:
With frenzied buying taking place at the high end of the market and inventory holding at its lowest level of all time, the Houston housing market achieved the eleventh straight month of positive sales in April. HAR again notes that some of the data in this report are distorted because the sales activity is being compared to April of 2020 when the real estate business was just ramping back up following COVID-related lockdowns.
April sales trends were largely positive. Single-family home sales, total property sales and total dollar volume all rose compared to April 2020. Pending sales shot up 72.4 percent. However, total active listings – or the total number of available properties – fell 42.9 percent with new listings dramatically outpaced by sales.
Despite a 26.8 percent year-over-year increase in new listings in April, strong buyer demand and surging sales dropped single-family homes inventory to a 1.4-months supply versus 3.4 months a year earlier. That is unchanged from last month’s level, which remains the lowest inventory of all time. Housing inventory nationally stands at a 2.1-months supply, according to the National Association of Realtors (NAR).
Lease Property Update(HAR Report):
Lease properties staged a mixed performance in April. Single-family lease homes fell 3.4 percent year-over-year while leases of townhomes and condominiums increased 15.1 percent. The average rent for single-family homes jumped 11.0 percent to $1,960 while the average rent for townhomes and condominiums rose 8.0 percent to $1,688.
(HAR Report): “In my 20 years in real estate, I have never seen such dramatic forces sweeping across the Houston housing market as we have experienced since the coronavirus pandemic began,” said HAR Chairman Richard Miranda with Keller Williams Platinum. “The market is humming along at a record pace, fueled by low mortgage rates despite dwindling inventory and rising prices. However, without a healthy boost in new listings in the weeks and months ahead, the current pace of sales cannot be sustained.”
