Houston Area Real Estate Market Report for May 2017 

Sales of homes priced from $750000 and above led the way in April with a 15.8% increase from the same month in 2016, marking the sixth consecutive month of rising sales for the luxury market. Homes priced from $250,000 to $499999 sales increased 11.3% from April 2016.  Sales of homes priced $150,000 and less fell, likely because there are very few homes on the market in this price range. Overall property sales volume was up by 4.2%.  While homebuyers remained very active, sellers were putting homes on the market at a quicker pace helping to increase inventory levels to 4.0 months from a 3.6 month supply 12 months prior.

A Look At The Housing Stats

Single family home sales volume and prices both rose, with 6583 units sold city-wide compared to 6387 in April of 2016. City wide inventory levels rose slightly to a 4.0 month supply from a 3.6 month supply during the 4th month of 2016. Months of Inventory is a measure of how long all the existing homes on the market would last assuming no more listings are added, and the remainder of the inventory sells at the current rate of sales. Housing inventory across the U.S. is also at about a 3.8 month supply according to The National Association of Realtors. Lower inventory levels indicate a strong market. A balanced market is usually considered to be around 6 months.

CATEGORIES

APRIL 2016

APRIL 2017

CHANGE

Total property sales

7,694

8,014

4.2%

Total dollar volume

$2,050,177,042

$2,216,093,233

8.1%

Total active listings

34,855

39,567

13.5%

Single-family home sales

6,387

6,583

3.1%

Single-family average sales price

$278,658

$291,770

4.7%

Single-family median sales price

$218,000

$228,000

4.6%

Single-family months inventory*

3.6

4.0

0.4 mos.

Single-family pending sales

7,289

8,381

15.0%

* 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.

The median sales price of Houston homes increased 4.6% to set a record high for an April at $228000. Median price is the price point at which ½ the homes were sold above and ½ the homes were sold below. Average sales price also set a  record of $291770, a strong increase of 4.7% over April 2016.

There were 8381 properties under contract at month’s end, which is an increase of 15% from April 2016. Also, active listings of available properties was up by 13.5% from last year to 39567.

 Average days on the market declined slightly from April of last year, selling in an average of 55 days, one day quicker than in 2016.

Townhome and condominium sales increased again in April 2017. There were 599 units sold versus 577 in 2016. The median price was 171500, an increase of 8.5% from 2106. Average price declined to $207527, which was 0.6% lower than one year ago. Inventory increased to a 4.1 month supply from 3.5 months in April of last year.

 

So, what does this data mean?

Housing inventory levels are slowly increasing but remain tight. The biggest increase in sales numbers was in the higher price ranges that were hardest hit by the oil price slump. Optimism remains high with the local economy and according to the latest Texas Workforce Commission employment report 13,300 jobs were created throughout greater Houston in March.  The concern of rising interest continues to motivate many buyers to get off the fence and competition among buyers for available properties should remain high.  Demand for nicer, well-maintained homes that are priced correctly remains strong. We see this in our daily business where these homes receive multiple offers in the first days and in some cases the first hours of being on the market.

What does this mean if you are looking to sell a house in the Houston area?

Strong demand and low inventory levels is a trend that is likely to continue into the last half of 2017 and we expect to see a strong seller’s market throughout the summer. Sellers, especially those around the median sales price, should expect to see quick sales and strong sales prices for homes that are priced correctly, nicely maintained and updated.

Curious About YOUR Home’s value? 

 What does this mean if you are buying a house in the Houston area?

Buyers will likely continue to face stiff competition when submitting offers to purchase nice properties. While rates are up slightly over historical lows, they are still very attractive and make home ownership affordable. Many times a monthly payment will be less than the rent on a comparable home. As a result, there may not be a better time to buy than right now.

So, get started now, if you wait you may be costing yourself money!

Take a look at Last Month's Real Estate Market Update

 

About The Freund Group

 

With 86 years of combined Real Estate experience, The Freund Group consists of a team of six knowledgeable and experienced agents, a listing and marketing coordinator and a transaction coordinator.

We view real estate as not just a monetary investment, we view it as piece of a larger life puzzle. The Freund Group makes it a priority to understand your goals, not just in the short term but also in the years to follow. This allows us help our clients visualize their goals and understand their options and make the best possible decisions.

Our mission is to provide our clients with the most innovative approach to Real Estate services available. We want to assure that each of our clients receive a quality of service exceeding their expectations. The Freund Group maintains the highest standards of honesty and integrity to develop long term professional relationships with each of our clients.