2019 was a record year in Houston real estate and the high end luxury market was especially hot. According to a press release by The Houston Association of Realtors (HAR), the median single-family home price in 2019 rose 3.2% over 2018 and the number of sales of homes over $750,000 rose 12.7% in December 2019 over December of 2018.
The month of July set a record for the highest one-month single-family sales volume of all time with 8,918 homes sold. A record high high median single-family home price of $252,700 was set in June.
HAR attributes the success of the Houston real estate market to low mortgage interest rates, healthy employment and a stable supply of homes. Interest rates steadily declined from a peak in the 30 Year Fixed National Average in January of 4.5% to where they are today at around 3.75%.
Low interest rates increase the buying power of luxury real estate purchasers, meaning that some people who may not have thought they could afford luxury real estate a year ago, might be in a better position today.
Bryan Upton, President and CEO of Refined Custom Builders, LLC, thinks that it’s a great time to buy. “Although we can’t predict the future, we do know that interest rates are at historic lows and present an excellent opportunity to maximize the dream home you purchase in 2020.
Refined Custom Builders builds luxury custom homes in some of Houston’s finest neighborhoods. See some of our latest projects here.
Broken out by housing segment, December sales performed as follows:
- $1 – $99,999: decreased 20.0 percent
- $100,000 – $149,999: decreased 15.8 percent
- $150,000 – $249,999: increased 13.7 percent
- $250,000 – $499,999: increased 27.2 percent
- $500,000 – $749,999: increased 11.8 percent
- $750,000 and above: increased 12.7 percent
Some interesting statistics from the report:
- Total dollar volume for full-year 2019 rose 6.7 percent to a record-setting $30 billion.
- December single-family home sales jumped 14.3 percent year-over-year with 7,505 units sold. That marks the greatest one-month percentage increase of the year.
- At $251,000, the single-family home median price rose 4.6 percent to a December high.
- The single-family home average price climbed 2.5 percent to a December high of $312,922.
- Single-family homes months of inventory narrowed slightly to a 3.4-months supply.
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