The August 2017 Houston Association of Realtors (HAR) report revealed the initial impact of Harvey on the city’s real estate market.  The volume of home sales saw a drastic decline of 25.4%, which was the first slow down in almost a year.  By contrast, single family home prices remained resilient with average and median home prices rising 2.6% and 3.0% respectively.

Despite the setback, volume remains 1.8% ahead of last year on a year-to-date basis.

The volume of luxury home sales declined less than the overall market at 17.2%

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

  • $1 – $99,999: decreased 40.0 percent
  • $100,000 – $149,999: decreased 40.0 percent
  • $150,000 – $249,999: decreased 21.7 percent
  • $250,000 – $499,999: decreased 20.6 percent
  • $500,000 – $749,999: decreased 31.9 percent
  • $750,000 and above: decreased 17.2 percent

 

 

Harvey Slows Houston’s Real Estate Volume, but Prices Remain Resilient – August 2017 HAR Report 1

Months of inventory rose to 4.4 from 4.0 a year ago, another indicator of a moderating market and a move toward a buyers market, (which we consider to be more than 6 months of inventory).

Here are some interesting quotes and statistics from the report:

“Hurricane Harvey ended ten consecutive months of positive single-family home sales, as volume plunged 25.4 percent year-over-year with 5,917 units sold.”

“Despite Harvey’s rampage, single-family home sales remain 1.8 percent ahead of the 2016 volume on a year-to-date basis.”

“Single-family homes months of inventory grew to a 4.4-months supply, but is expected to shrink with strong consumer demand for housing in the wake of Harvey.”

CATEGORIES AUGUST 2016 AUGUST 2017 CHANGE
Total property sales 9,335 7,077 -24.2%
Total dollar volume $2,562,458,783 $1,993,970,105 -22.2%
Total active listings 38,086 42,822 12.4%
Single-family home sales 7,927 5,917 -25.4%
Single-family average sales price $288,920 $296,418 2.6%
Single-family median sales price $225,000 $231,700 3.0%
Single-family months inventory* 4.0 4.4 0.4 mos.
Single-family pending sales 6,680 6,295 -4.7%

* 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.

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If you would like more detail on a particular building step, or have any questions, please email bryan@refinedcustombuilders.com or call/text Bryan at 713.851.4698.

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