Houston Housing Market Trends
The Houston housing market kicked off 2016 with a strong month of sales, only about 2 percent off the January record, despite the ongoing effects of strains in the energy industry. Single-family homes priced between $150,000 and $250,000 saw year-over-year sales increase by nearly 9 percent while total property sales remained unchanged.
According to the latest monthly report prepared by the Houston Association of Realtors (HAR), January single-family home sales were down 2.1 percent versus January 2015 with a total of 4,024 sales compared to 4,109 a year earlier. An increase in new listings helped buoy a growth in inventory from a 2.5-months supply to 3.3 months.
“A lot of folks have nervously anticipated that falling oil prices would have a devastating effect on real estate, but so far, the Houston market has weathered the energy downturn without dramatic shifts in sales and pricing, said HAR Chairman Mario Arriaga with First Group. The most noticeable impact has been declines in the luxury market, but mid-range housing actually saw a healthy sales volume in January and inventory levels grew. HAR will continue to closely monitor the economic climate.”
In the February edition ofThe Economy at a Glance, the Greater Houston Partnership (GHP) reports that 23,200 jobs were added across the Houston metropolitan area in 2015, an increase of less than one percent, according to the Texas Workforce Commission. GHP is forecasting the creation of approximately 22,000 jobs in 2016.
In January, the single-family home average price eked out a fractional 0.3 percent year-over-year increase, reaching $262,663 while the median pricethe figure at which half of the homes sold for more and half sold for lessrose 5.3 percent to $200,000. Both figures represent all-time highs for a January in Houston.
The average price increased a fractional 0.3 percent to $262,663 while the median price rose 5.3 percent year-over-year to $200,000. Both are record highs for a January in Houston. Days on Market (DOM), or the number of days it took the average home to sell, edged up to 61 days versus 57 in 2015.
Broken out by housing segment, January sales performed as follows:
- $1 – $79,999: decreased 40.6 percent
- $80,000 – $149,999: decreased 16.2 percent
- $150,000 – $249,999: increased 8.8 percent
- $250,000 – $499,999: decreased 1.0 percent
- $500,000 and above: decreased 9.3 percent
Source: Houston Association of Realtors and Multiple Listing Service Press Release 2/10/2016