Entering the final weeks of the year, home sales continue to outpace 2017’s record levels
HOUSTON — (December 12, 2018) — In a display of textbook seasonality, with the holidays sending consumers into their annual retail frenzy, Houston home sales slowed slightly in November. However, it was not enough to knock the real estate market off its record-setting pace.
According to the latest monthly report from the Houston Association of Realtors® (HAR), 6,159 single-family homes sold in November compared to 6,285 a year earlier, representing a 2.0-percent decline. On a year-to-date basis, home sales are 4.6 percent ahead of 2017’s record volume. Inventory edged up from a 3.6-months supply to 3.9 months.
The median price of a single-family home (the figure at which half of the homes sold for more and half for less) rose 4.4 percent to $235,000 and the average price increased 4.3 percent to $295,084. Both represent the highest prices ever for a November. All housing segments experienced gains except for homes priced at $150,000 and below The best-performing segment was the luxury market, consisting of homes priced at $750,000 and above, which climbed 12.3 percent.
Sales of all property types totaled 7,400 – statistically flat versus last year. November’s total dollar volume increased 3.9 percent to $2.1 billion.
“The Houston housing market remains on track for another record year, which was an almost unimaginable concept when the year began, on the heels of so much devastation from Hurricane Harvey,” said HAR Chair Kenya Burrell-VanWormer with JPMorgan Chase. “As 2018 draws to a close, we see slow but steady growth in the supply of housing as well as a strong job market, which together make for a healthy real estate climate.”
Lease Property Update
Consumers kept Houston’s lease market humming in November. Single-family home rentals soared 15.3 percent while leases of townhomes and condominiums rose 0.6 percent. The average rent for single-family homes declined 1.3 percent to $1,743 while the average rent for townhomes and condominiums edged up 0.5 percent to $1,505.
November Monthly Market Comparison
The Houston real estate market had a largely positive performance in November and remains on track to set new sales records when the books are closed on 2018. As consumers turned their attention to holiday shopping, single-family home sales fell slightly and total property sales were statistically flat compared to November 2017; total dollar volume and pricing were up. Month-end pending sales for single-family homes totaled 6,052, which represents a 5.8 percent increase over last year. Total active listings, or the total number of available properties, climbed 8.9 percent to 40,530. Single-family homes inventory saw some growth in November, reaching a 3.9-months supply versus a 3.6-months supply a year earlier. For perspective, housing inventory nationally stands at a 4.3-months supply, according to the latest report from the National Association of Realtors® (NAR).
Single-Family Homes Update
Sales of single-family homes declined 2.0 percent in November, as 6,159 units sold across the greater Houston area compared to 6,285 a year earlier. However, on a year-to-date basis, sales volume is running 4.6 percent ahead of 2017’s record pace and is expected to remain in record territory as we close out 2018. Prices reached the highest levels ever for a November. The median price increased 4.4 percent to $235,000 while the average price rose 4.3 percent to $295,084. Days on Market (DOM), or the number of days it took the average home to sell, improved to 60 from 62 a year earlier. Inventory registered a 3.9-months supply, up slightly from 3.6 months a year ago.
Broken out by housing segment, November sales performed as follows:
- $1 – $99,999: decreased 25.3 percent
- $100,000 – $149,999: decreased 24.3 percent
- $150,000 – $249,999: increased 2.3 percent
- $250,000 – $499,999: increased 7.2 percent
- $500,000 – $749,999: increased 1.9 percent
- $750,000 and above: increased 12.3 percent
HAR also breaks out sales data for existing single-family homes. Existing home sales totaled 4,945 in November, a decline of 3.2 percent versus the same month last year. The average sales price rose 5.7 percent to $283,523 while the median sales price increased 3.1 percent to $218,000.
November saw a drop of 2.8 percent in townhome and condominium sales, with 488 units sold versus 502 a year earlier. The average price rose 9.0 percent to $213,043 and the median price increased 4.5 percent to $165,000. Inventory grew from a 3.7-months supply to 4.1 months.
Houston Real Estate Highlights in November
- Single-family home sales fell 2.0 percent year-over-year, with 6,159 units sold;
- On a year-to-date basis, home sales are up 4.6 percent and on track for breaking 2017’s record performance when December data are compiled;
- Days on Market (DOM) for single-family homes was 60 versus 62 a year earlier;
- Total property sales were statistically flat, with 7,400 units sold;
- Total dollar volume rose 3.9 percent to $2.1 billion;
- The single-family home median price climbed 4.4 percent to $235,000, a November high;
- The single-family home average price also achieved a November record, rising 4.3 percent to $295,084;
- Single-family homes months of inventory reached a 3.9-months supply, up from 3.6 months last November, but below the national supply of 4.3 months reported by NAR;
- Townhome/condominium sales dropped 2.8 percent, with the average price up 9.0 percent to $213,043 and the median price up 4.5 percent to $165,000;
- Leases of single-family homes jumped 15.3 percent with the average rent down 1.3 percent to $1,743;
- Volume of townhome/condominium leases rose 0.6 percent with the average rent up 0.5 percent to $1,505.