News
Single-Family Homes Update(HAR Report)
Single-family home sales dipped 0.9 percent in May with 9,627 units sold across the Greater Houston area compared to 9,714 a year earlier. Strong sales among higher-end homes once again pushed pricing to historic highs. The median price climbed 16.0 percent to $351,000 while the average price rose 14.3 percent to $440,670. The average price first broke the $400,000 mark in March of 2022.
May Monthly Market Comparison(HAR Report)
Between home prices reaching historic highs and mortgage interest rates on the rise, the Houston real estate market eased up a bit in May as some consumers put off purchases or turned to rentals as an alternative. Single-family home sales declined a fractional 0.9 percent, however on a year-to-date basis, sales are 4.4 percent ahead of last year’s record pace.
Of all the monthly housing metrics for May, only single-family home sales and total property sales experienced declines. Active listings (the total number of available properties) jumped 14.9 percent and total dollar volume for May rose 12.0 percent to $4.9 billion.
Helped by a 9.0 percent increase in new listings, months of inventory reached a 1.6-months supply, the highest level since October 2021 when it was 1.7 months. Housing inventory nationally stands at a 2.2-months supply, according to the latest report from the National Association of Realtors (NAR). A 6.0-months supply is traditionally considered a “balanced market,” in which neither the buyer nor the seller has an advantage.
HAR Report: The continued lack of below-$250,000 housing inventory has driven consumers toward more expensive properties as well as into for-lease homes [HAR’s first Monthly Rental Home Update for May will be released next Wednesday, June 15]. Mortgage rates are still on the rise with the average rate on a 30-year fixed rate mortgage up to 6.059 percent as of June 7.
The march into record territory continued in May, with buyers pushing Houston home prices to new highs. The average price of a single-family home rose 14.3 percent to $440,670 while the median price jumped 16.0 percent to $351,000. The average price for a single-family home in Houston first broke the $400,000 mark in March of this year.
“Conditions appear to be calming a bit across the Houston housing market, so we are not seeing the frenetic pace of buying we did a couple of months ago with dozens of competing offers on new listings,” noted HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene. “New listings increased nine percent in May, helping boost inventory to its highest level of the year, so hopefully we can begin to see signs of normalcy in terms of supply, demand and pricing in the months ahead.”
For the second month in a row, the ‘Close to Original List Price Ratio’ for single-family homes broke the 100 percent mark, rising 100.9 percent — the highest percentage ever. That means that a majority of buyers paid above list price for homes on the market. The ratio first broke the 100 percent mark last summer, as high-dollar buying began to permeate the market. It was up 100.6 percent last month.
HOUSTON ,HAR Report— (June 8, 2022) — Home sales maintained a healthy pace in May even as prices climbed to new record highs and mortgage interest rates edged further upward. Individual consumers and investment companies kept up demand, snapping up properties almost as quickly as they were listed. By the time the final closing of the month was tallied, volume of single-family home sales was down slightly under one percent compared to last year’s record pace. And thanks, in part, to an increase of new listings, housing inventory reached its highest level of 2022.
According to the Houston Association of Realtors’ (HAR) May 2022 Market Update, single-family home sales fell 0.9 percent, marking the second consecutive monthly year-over-year decline with 9,627 units sold compared to 9,714 in May of 2021. On a year-to-date basis, however, the market is running 4.4 percent ahead of 2021’s record-setting volume.
The $500,000 to $1 million housing segment was the “hot” performer of the month, registering a 38.3 percent year-over-year sales volume gain. That was followed by the luxury segment – made up of homes priced at $1 million and above – which jumped 30.2 percent. The $250,000 to $500,000 housing segment landed third place with a 10.7 percent increase.
Houston Real Estate Highlights in April(HAR Report):
Single-family home sales were statistically flat (down 0.2 percent) year-over-year;
Days on Market (DOM) for single-family homes dropped from 40 to 33;
The ‘Close to Original List Price Ratio’ for single-family homes reached 100.6 percent — the highest ever — as a majority of buyers paid above list price for homes on the market;
Total property sales were statistically flat (up 0.2 percent) with 11,384 units sold;
Total dollar volume increased 14.5 percent to $4.5 billion;
The single-family average price rose 14.9 percent to $426,061, the highest of all time, and only the second time that pricing has exceeded $400,000;
The single-family median price increased 16.6 percent to $343,990 – also a record;
Single-family home months of inventory registered a 1.4-months supply, up from 1.3 months a year earlier;
Townhome/condominium sales rose 3.4 percent with the average price up 11.6 percent to $273,575 and the median price up 17.5 percent to $234,950. Both are record-setting highs;
Single-family home rentals rose 17.2 percent with the average rent up 10.2 percent to $2,164;
Townhome/condominium leases fell 3.0 percent with the average rent up 8.4 percent to $1,831.
Townhouse/Condominium Update(HAR Report):
Townhouses and condominiums scored another positive month in April. Sales volume rose 3.4 percent with 818 closed sales versus 791 a year earlier. The average price rose 11.6 percent to $273,575 and the median price jumped 17.5 percent to $234,950. Both figures represent the highest pricing of all time. Inventory fell from a 2.6-months supply to 1.5 months.
HAR Report: Days on Market, or the actual time it took to sell a home, dropped from 40 to 33 days. Inventory registered a 1.4-months supply compared to 1.3 months a year earlier. That is only slightly above Houston’s lowest inventory level of all time – 1.2 months, which was recorded in February and March 2022. The current national inventory stands at 2.0 months, as reported by NAR.
Broken out by housing segment, April sales performed as follows:
$1 - $99,999: decreased 6.8 percent
$100,000 - $149,999: decreased 15.5 percent
$150,000 - $249,999: decreased 44.7 percent
$250,000 - $499,999: increased 13.5 percent
$500,000 - $999,999: increased 45.0 percent
$1M and above: increased 24.9 percent
HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 7,296 in April. That was up 0.8 percent from the same month last year. The average sales price rose 15.3 percent to a record high $429,620 while the median sales price climbed 15.8 percent to $337,500, also an historic high.
Single-Family Homes Update(HAR Report):
Single-family home sales were statistically flat in April with 9,079 units sold across the Greater Houston area compared to 9,100 a year earlier. Strong sales volume among higher-end homes pushed pricing to historic highs. The median price climbed 16.6 percent to $343,990 while the average price rose 14.9 percent to $426,061. These prices are not only new record highs, but the average price represents only the second time in history that single-family pricing exceeded $400,000. The first time was a month earlier, in March 2022.
April Monthly Market Comparison(HAR Report):
Record high home prices, rising mortgage interest rates and dwindling inventory caused the Houston real estate market to slow its roll in April, with many consumers putting off purchases and sitting tight or opting to rent instead. Single-family home sales were statistically unchanged year-over-year, however on a year-to-date basis, they are 7.4 percent ahead of last year’s record pace.
With the exception of single-family home sales and pending sales, the monthly market metrics showed positive readings. Active listings (the total number of available properties) rose 5.2 percent. Sales of all property types were statistically unchanged, totaling 11,384, and total dollar volume for April jumped 14.5 percent to $4.5 billion.
Months of inventory edged up to a 1.4-months supply, which is just slightly above the lowest level of all time. Over the past year, its highest level was a 1.7-months supply from July through October of 2021. Housing inventory nationally stands at a 2.0-months supply, according to the latest report from the National Association of Realtors (NAR). A 6.0-months supply is traditionally considered a “balanced market,” in which neither the buyer nor the seller has the upper hand.
Lease Property Update (HAR Report):
Houston’s lease market registered a mixed performance in April. Single-family rental homes benefited strongly from consumers that postponed homebuying plans, rising 17.2 percent year-over-year. Leases of townhomes and condominiums, however, fell 3.0 percent. The average single-family rent rose 10.2 percent to $2,164 while the average rent for townhomes and condominiums increased 8.4 percent to $1,831.
