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THE HOUSTON REAL ESTATE MARKET ENTERS AUTUMN ON STEADY FOOTING

Home sales volume keeps pace with 2015 while pricing achieves October highs

HOUSTON — (November 9, 2016) — Despite continued strains within the energy industry and jitters surrounding the outcome of the presidential election, the Houston housing market held steady for a second straight month. Home sales in October were statistically unchanged compared to October 2015. Homes priced between $150,000 and $500,000 experienced positive sales volume while the market’s high and low ends saw declines, mirroring September’s trends. Both median and average price reached record highs for an October.

According to the latest monthly report prepared by the Houston Association of Realtors (HAR), a total of 5,916 single-family homes sold in October compared to 5,893 a year earlier. On a year-to-date basis, home sales are up 1.2 percent compared to this point in 2015. Inventory levels grew slightly from a 3.5-months supply to 3.8 months.

"The Houston housing market continues to demonstrate its strength by holding steady in the midst of a weakened energy sector and uncertainty about the presidential election,” said HAR Chairman Mario Arriaga with First Group. “Even without those influences, autumn traditionally marks a period of slower sales, so we are extremely pleased to see the market keeping pace with last year’s record levels."

The single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 6.3 percent to $218,000 That marks the highest median price ever for an October. The average price increased 2.2 percent to $277,904, which also represents an October high.

October sales of all property types in Houston totaled 7,120, up a fractional 0.7 percent from the same month last year. Total dollar volume for properties sold in October rose 1.4 percent to $1.9 billion.

October Monthly Market Comparison

Houston's monthly housing market indicators yielded positive readings compared to October 2015. On a year-over-year basis, single-family homes sales were statistically unchanged, total property sales rose fractionally, total dollar volume grew, and both the median and average home prices climbed to record October highs.

Month-end pending sales for single-family homes totaled 6,589, an increase of 16.4 percent compared to last year. Total active listings, or the total number of available properties rose 9.2 percent from October 2015 to 37,111.

Single-family homes inventory edged up from a 3.5-months supply to 3.8 months. For perspective, housing inventory across the U.S. currently stands at a 4.5-months supply, according to the latest report from the National Association of Realtors (NAR).

CATEGORIES OCTOBER 2015 OCTOBER 2016 CHANGE
Total property sales 7,071 7,120 0.7%
Total dollar volume $1,837,260,865 $1,863,107,351 1.4%
Total active listings 33,993 37,111 9.2%
Single-family home sales 5,893 5,916 0.4%
Single-family average sales price $271,964 $277,904 2.2%
Single-family median sales price $205,000 $218,000 6.3%
Single-family months inventory* 3.5 3.8 0.3 mos.
Single-family pending sales 5,660 6,589 16.4%
* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

Single-Family Homes Update

Single Family

Single-family home sales totaled 5,916, up 0.4 percent (considered statistically flat) from October 2015. The median price rose 6.3 percent to an October high of $218,000. The average price climbed 2.2 percent to $277,904, also a record high for an October. Days on Market (DOM), or the number of days it took the average home to sell, edged up to 55 days versus 53 last year.

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

  • $1 - $79,999: decreased 24.7 percent
  • $80,000 - $149,999: decreased 23.7 percent
  • $150,000 - $249,999: increased 12.0 percent
  • $250,000 - $499,999: increased 9.5 percent
  • $500,000 and above: decreased 2.0 percent

 

Single Family Average Home Price

HAR also breaks out the sales figures for existing single-family homes. Existing home sales totaled 4,963 in October, down 1.4 percent versus the same month last year. The average sales price rose 2.6 percent to $259,534 while the median sales price increased 7.7 percent to $202,800.

Townhouse/Condominium Update

Townhome and condominium sales were flat in October, with 517 units selling in versus 515 a year earlier. The average price was unchanged at $197,558, while the median price jumped 4.7 percent to $157,000. Inventory grew from a 3.3-months supply to 3.7 months.

Townhouse/Condominium Sales

Lease Property Update

TThe lease market cooled in October. Single-family home leases declined 1.0 percent, while townhome/condominium leases dropped 2.3 percent. The average rent for single-family homes was up 1.2 percent to $1,728, while the average rent for townhomes/condominiums was down 2.1 percent to $1,488.

Houston Real Estate Highlights in October
  • Single-family home sales were statistically unchanged with 5,916 units sold;
  • On a year-to-date basis, single-family home sales were up 1.2 percent;
  • Total property sales rose 0.7 percent to 7,120 units;
  • Total dollar volume increased 1.4 percent to $1.9 billion;
  • At $218,000, the single-family home median price rose 6.3 percent to an October high;
  • The single-family home average price increased 2.2 percent to $277,904, which was also the highest level for an October;
  • Single-family homes months of inventory climbed to a 3.8-months supply;
  • Townhome/condominium sales were flat, with the average price unchanged at $197,558 and the median price up 4.7 percent to $157,000;
  • Leases of single-family homes declined 1.0 percent with average rent down slightly to $1,728;
  • Leases of townhomes/condominiums fell 2.3 percent with average rent down 2.1 percent to $1,488.
The computerized Multiple Listing Service of the Houston Association of REALTORS® includes residential properties and new homes listed by 32,000 REALTORS® throughout Harris, Fort Bend and Montgomery counties, as well as parts of Brazoria, Galveston, Waller and Wharton counties. Residential home sales statistics as well as listing information for more than 50,000 properties may be found on the Internet at http://www.har.com.

The information published and disseminated to the HAR Multiple Listing Services is communicated verbatim, without change by Multiple Listing Services, as filed by MLS participants.

The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported since November 1998 includes a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures. (Single-family detached homes were broken out separately in monthly figures beginning February 1988.)

Founded in 1918, the Houston Association of REALTORS® (HAR) is a 32,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest individual dues-paying membership trade association in Houston as well as the second largest local association/board of REALTORS® in the United States.

Remember, Danny Frank is always looking to hire new and experienced real estate agents for the team at Keller Williams Realty, Greater Northwest.  Are you ready to move to the next level in your career? Call me to join today.  You can see my entire blog at: http://www.pearlandrealtyblog.com .

If you would like, you can visit my career site at: https://goo.gl/DCqeBG

 

Call Danny Frank, at 713-581-4702 to start looking for the JUST right house or to sell your house at the best price ever and in the quickest amount of time.

 
Danny Frank Realtor

Chat: Google Talk: DanFrankTX Skype: DanFrankTX

  

 

Comment balloon 1 commentDanny Frank • November 10 2016 02:13PM
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