A healthier supply of inventory helps meet strong buyer demand; sales volume reaches historic high
After a down month in July, Houston single-family home sales roared back in August with an 8.2 percent year-over-year increase that was fueled by a growing supply of inventory for buyers. August also marked the highest one-month single-family home sales volume of all time, and the first time in a year that homes priced above $500,000 experienced a sales gain. In fact, only homes priced below $150,000 saw sales volume decline,
According to the latest monthly report prepared by the Houston Association of REALTORS® (HAR), a total of 7,914 homes sold in August. That is the greatest one-month volume since July 2015, when 7,898 homes sold. On a year-to-date basis, home sales are up 1.5 percent compared to this point in 2015.
Inventory levels rose from a 3.5-months supply to 4.0 months. “August proved to be a strong month for the Houston real estate market, which was welcome news after the slowdown in July,” said HAR Chairman Mario Arriaga with First Group. “It’s possible that summer vacations meant consumers put home buying on the back burner in July, but whatever the cause, home sales appear to once again be moving at a healthy pace.”
The single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 4.2 percent to $225,000. That is the highest median price ever for an August. The average price climbed 2.4 percent to $289,519, which is also an August record high.
August sales of all property types in Houston totaled 9,319, up 7.1 percent from the same month last year. Total dollar volume for properties sold in August surged 10.6 percent to $2.6 billion.
August Monthly Market Comparison
Houston’s monthly housing market indicators were positive across the board compared to August 2015. On a year-over-year basis, single-family homes sales, total property sales and total dollar volume all rose while both the median and average home prices climbed to record August highs. August also marked the greatest one-month single-family home sales volume of all time.
Month-end pending sales for single-family homes totaled 7,359, an increase of 10.1 percent compared to last year. Total active listings, or the total number of available properties, at the end of August rose 12.4 percent from August 2015 to 38,056.
Single-family homes inventory jumped from a 3.5-months supply to 4.0 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 7,914, up 8.2 percent from August 2015. That represents the highest one-month sales volume of all time.
The median price rose 4.2 percent to an August high of $225,000. The average price climbed 2.4 percent to $289,519, also a record high for an August. Days on Market (DOM), or the number of days it took the average home to sell, edged up to 50 days versus 45 last year.
Broken out by housing segment, August sales performed as follows:
- $1 – $79,999: decreased 32.5 percent
- $80,000 – $149,999: decreased 10.0 percent
- $150,000 – $249,999: increased 13.5 percent
- $250,000 – $499,999: increased 12.7 percent
- $500,000 and above: increased 5.8 percent
HAR also breaks out the sales figures for existing single-family homes. Existing home sales totaled 6,815 in August, up 8.2 percent versus the same month last year. The average sales price rose 3.4 percent to $272,720 while the median sales price increased 5.0 percent to $210,000.
Townhome and condominium sales increased 5.1 percent with 656 units selling in August versus 624 a year earlier. The average price rose 1.0 percent to $202,669 while the median price climbed 4.0 percent to $156,000. Inventory grew from a 3.1-months supply to 3.7 months.
Lease Property Update
The lease market had a mixed performance in August. Single-family home leases declined 2.2 percent, while townhome/condominium leases rose 5.7 percent. The average rent for single-family homes was down 1.2 percent at $1,878 and the average rent for townhomes/condominiums fell 2.6 percent to $1,604.
Houston Real Estate Highlights in August
- Single-family home sales rose 8.2 percent with a total of 7,914 units sold —the greatest one-month sales volume of all time
- On a year-to-date basis, single-family home sales are up 1.5 percent;
- Total property sales rose 7.1 percent to 9,319 units;
- Total dollar volume shot up 10.6 percent to $2.6 billion;
- At $225,000, the single-family home median price rose 4.2 percent to an August high;
- The single-family home average price increased 2.4 percent to $289,519, which was also the highest level for an August;
- Single-family homes months of inventory climbed to a 4.0-months supply;
- Townhome/condominium sales rose 5.1 percent, with the average price up 1.0 percent to $202,669 and the median price up 4.0 percent to $156,000;
- Leases of single-family homes were down 2.2 percent with average rent down slightly to $1,878;
- Leases of townhomes/condominiums rose 5.7 percent with average rent down 2.6 percent to $1,604.