Sales volume and pricing reach new highs
Neither scorching temperatures nor vacation plans could stop homebuyers from pushing the Houston real estate market into record territory in June, as they generated the greatest one-month sales volume of all time and sent average and median prices to new highs. Single-family home rentals were also in strong demand.
According to the latest monthly report from the Houston Association of REALTORS® (HAR), 8,518 single-family homes sold in June compared to the last record high of 8,367 homes exactly one year earlier. That represents a 1.8 percent increase.
The single-family home median price (the figure at which half of the homes sold for more and half sold for less) rose 2.6 percent to $245,000 and the average price climbed 4.3 percent to $316,463. Those prices broke records set just last month and are the result of strong activity in the luxury market – homes priced at $750,000 and above – which saw an 18.4 percent year-over-year jump in sales volume
“If there were concerns about rising home prices in the Houston market, you wouldn’t know it from all the homebuying that took place in June,” said HAR Chair Kenya Burrell-VanWormer with JPMorgan Chase. “We continue to outperform last year’s record pace of home sales, but we’ll keep a close eye on inventory levels in the weeks ahead to ensure they are meeting demand.”
June sales of all property types broke the 10,000-mark for the first time in history, totaling 10,115. That represents an increase of 1.7 percent versus the same month last year. Total dollar volume was up 6.6 percent, reaching more than $3 billion.
Lease Property Update
Activity among leased property staged a mixed performance in June. Single-family home rentals rose 4.7 percent while leases of townhomes and condominiums fell 4.2 percent. The average rent for single-family homes increased 3.9 percent to $1,877 and the average rent for townhomes and condominiums rose 6.7 percent to $1,662.
June Monthly Market Comparison
Indicators for the Houston real estate market’s June performance were mostly positive, with single-family home sales, total property sales, pricing and total dollar volume all up compared to June 2017. Month-end pending sales for single-family homes totaled 8,396, a 10.2 percent increase over last year. Total active listings, or the total number of available properties, fell 3.9 percent to 40,198.
Single-family homes inventory recorded a 4.1-months supply in June, its highest level since last August when it reached a 4.3-months supply. For perspective, housing inventory across the U.S. also stands at a 4.1-months supply, according to the latest report from the National Association of REALTORS® (NAR).
Single-Family Homes Update
Single-family home sales rose 1.8 percent in June with 8,518 units sold across the greater Houston area compared to 8,367 a year earlier. That is the greatest one-month sales volume of all time. On a year-to-date basis, home sales are 2.6 percent ahead of 2017’s record pace.
Prices reached historic highs in June. The median price increased 2.6 percent to $245,000. The average price rose 4.3 percent to $316,463.
Days on Market (DOM), or the number of days it took the average home to sell, declined from 50 to 48 days. Inventory registered a 4.1-months supply which is its highest level since August 2017 and equal to the current national inventory level reported by NAR.
Broken out by housing segment, June sales performed as follows:
- $1 – $99,999: decreased 29.0 percent
- $100,000 – $149,999: decreased 23.7 percent
- $150,000 – $249,999: increased 16.1 percent
- $250,000 – $499,999: increased 18.0 percent
- $500,000 – $749,999: increased 13.5 percent
- $750,000 and above: increased 18.4 percent
HAR also breaks out the sales figures for existing single-family homes. Existing home sales totaled 7,186 in June, up 1.2 percent versus the same month last year. The average sales price increased 4.1 percent to $305,583 while the median sales price rose 4.4 percent to $235,000.
After a 7.2 percent decline in May, sales of townhomes and condominiums turned around in June, increasing 4.9 percent with 709 units sold versus 676 a year earlier. The average price fell 1.7 percent to $211,050 while the median price dropped 4.1 percent to $163,000. Inventory was unchanged at a 4.2-months supply.
Houston Real Estate Highlights in June
- Single-family home sales rose 1.8 percent year-over-year, with 8,518 units sold, the largest one-month sales volume of all time;
- Days on Market (DOM) for single-family homes declined from 50 to 48 days;
- Total property sales reached record levels, rising 1.7 percent, with 10,115 units sold – the first time that number has broken the 10-thousand mark;
- Total dollar volume increased 6.6 percent to slightly more than $3 billion;
- The single-family home median price rose 2.6 percent to $245,000, reaching an all-time high;
- The single-family home average price increased 4.3 percent to a record high of $316,463;
- Single-family homes months of inventory was at a 4.1-months supply, the highest level since last August and equal to the national inventory level;
- Townhome/condominium sales rose 4.9 percent, with the average price down 1.7 percent to $211,050 and the median price down 4.1 percent to $163,000;
- Leases of single-family homes climbed 4.7 percent with the average rent up 3.9 percent to $1,877;
- Volume of townhome/condominium leases fell 4.2 percent with the average rent up 6.7 percent to $1,662.