The Houston Association of Realtors (HAR) released their February 2017 report last week revealing that the Houston real estate market continues to grow at a healthy pace.
Average single-family home prices rose 6.7% year over year, which we continue to call a “Goldilocks market,” (not too hot, not too cold.) In stable, appreciating real estate environments, it becomes easier to predict future values. Home buyers have confidence that they don’t have to time the market.
Months of inventory went up to 3.5 from 3.4 a year ago, which signifies a slight move toward a buyers market. Typically we see 6 months of inventory as the tipping point between a buyer’s and seller’s market. Under that measure, Houston has been a seller’s market for several years.
Most interestingly, the upper end of the real estate market is experiencing the biggest bump. 19.8% and 27.9% sales volume increase for the top 2 tiers of homes represents a robust high-end market. Those considering purchasing a high end home may want to make the leap sooner rather than later.
Broken out by housing segment, February sales performed as follows:
- $1 – $99,999: decreased 21.0 percent
- $100,000 – $149,999: decreased 15.8 percent
- $150,000 – $249,999: increased 9.4 percent
- $250,000 – $499,999: increased 21.1 percent
- $500,000 – $749,999: increased 19.8 percent
- $750,000 and above: increased 27.9 percent
Here are some interesting quotes and statistics from the report:
“Homes priced at $250,000 and above saw the strongest sales volume, and the luxury market ($750,000 and above) enjoyed a fourth consecutive month of positive sales.”
“The single-family home median price (the figure at which half of the homes sold for more and half sold for less) jumped 7.3 percent to $220,000. That marks the highest median price ever for a February. The average price rose 6.7 percent to $280,175, which also represents a February high.”
“Houston real estate recorded gains in all statistical indicators during the month of February, with single-family home sales, total property sales, total dollar volume and pricing all up compared to February 2016.”
|CATEGORIES||FEBRUARY 2016||FEBRUARY 2017||CHANGE|
|Total property sales||5,707||6,111||7.1%|
|Total dollar volume||$1,429,474,154||$1,616,113,461||13.1%|
|Total active listings||33,159||35,685||7.6%|
|Single-family home sales||4,743||4,933||4.0%|
|Single-family average sales price||$262,546||$280,175||6.7%|
|Single-family median sales price||$204,990||$220,000||7.3%|
|Single-family months inventory*||3.4||3.5||0.1 mos.|
|Single-family pending sales||6,106||6,908||13.1%|
* 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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