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Houston’s Median Home Price Hits a Record High in June

June provided a continued boost to Houston’s housing inventory as new listings entered the market. Home sales volume was unchanged year-over-year, but as the local real estate market has seen for the past several months, most of the homes consumers purchased were priced in the $150,000 to $500,000 range.

According to the latest monthly report prepared by the Houston Association of REALTORS® (HAR), a total of 7,696 homes sold in June compared to 7,710 a year earlier—  statistically unchanged. However, on a year-to-date basis, home sales rose 2.7 percent versus June of 2015. Inventory levels enjoyed another bump, rising from a 3.2-months supply to 3.7 months.

“We continued to see solid buying activity among middle-range housing in June,” said HAR Chairman Mario Arriaga with First Group. “Even though sales overall leveled off compared to last June, volume is up for the year, and we anticipate a sufficient supply of inventory and low interest rates to draw more home buyers into the market in the weeks ahead.”

The single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 2.5 percent to a record high of $230,538 in June. The average price declined a fractional 0.8 percent in June to $300,178, the second highest level of all time (the highest was $302,599 in June 2015).

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June sales of all property types in Houston totaled 9,139, down 0.9 percent from the same month last year. Total dollar volume for properties sold in June declined 1.7 percent to $2.6 billion.

June Monthly Market Comparison
Houston’s monthly housing indicators were mixed in June compared to those from a year earlier, but nevertheless continue to reflect market sustainability. On a year-over-year basis, single-family homes sales were flat, the median price reached a record high while the average price hit the second highest level of all time, total dollar volume declined and inventory grew.

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Month-end pending sales for single-family homes totaled 7,801, an increase of 8.6 percent compared to last year. Total active listings, or the total number of available properties, at the end of June climbed 13.8 percent from June 2015 to 35,857.

An increase in new listings in June elevated single-family homes inventory, with levels rising from a 3.2-months supply to 3.7 months. For perspective, housing inventory across the U.S. currently stands at a 4.7-months supply, according to the latest report from the National Association of REALTORS® (NAR).

Single-Family Homes Update
Single-family home sales totaled 7,696 in June, down a fractional 0.2 percent from June 2015.

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The median price rose 2.5 percent to an all-time record high of $230,538. The average price declined 0.8 percent to $300,178, second only to last June’s record of $302,599. Days on Market (DOM), or the number of days it took the average home to sell, edged up to 51 days versus 45 last year.

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

  • $1 – $79,999: decreased 20.0 percent
  • $80,000 – $149,999: decreased 19.1 percent
  • $150,000 – $249,999: increased 3.5 percent
  • $250,000 – $499,999: increased 2.5 percent
  • $500,000 and above: decreased 8.7 percent

HAR also breaks out the sales figures for existing single-family homes. Existing home sales totaled 6,669 in June, up 0.6 percent versus the same month last year. The average sales price edged up 0.5 percent year-over-year to $286,773 while the median sales price rose 4.6 percent to $218,750.

Townhouse/Condominium Update
Townhome and condominium sales fell 5.8 percent with 665 units selling in June versus 706 a year earlier. The average price declined 2.4 percent to $197,937 while the median price climbed 2.1 percent to $164,450. Inventory grew from a 2.7-months supply to 3.3 months.

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Lease Property Update
Renters were once again out in force in June. Single-family home leases rose 4.8 percent, while townhome/condominium leases jumped 12.9 percent. The average rent for single-family homes ticked up to $1,883 and the average rent for townhomes/condominiums dropped 5.6 percent to $1,658.

Houston Real Estate Highlights in June

  • Single-family home sales were basically unchanged with a total of 7,696 units sold;
  • On a year-to-date basis, single-family home sales are up 2.7 percent;
  • Total property sales fell 0.9 percent to 9,139 units;
  • Total dollar volume declined 1.7 percent to $2.6 billion;
  • At $230,538, the single-family home median price rose 2.5 percent to a record high;
  • The single-family home average price declined 0.8 percent to the second highest level of all time, $300,178 (the highest was $302,599 in June 2015);
  • Single-family homes months of inventory climbed to a 3.7-months supply versus 3.2 months a year earlier;
  • Townhome/condominium sales fell 5.8 percent with the average price down 2.4 percent to $197,937 and the median price up 2.1 percent to $164,450;
  • Leases of single-family homes were up 4.8 percent with rents up slightly to $1,883;
  • Leases of townhomes/condominiums soared 12.9 percent with rents down 5.6 percent to $1,658.

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