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
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.”
* 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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