2013 – The Best Year in Residential Real Estate in Houston’s history!

2013 was the best year in residential real estate in Houston’s history!  Single-family home sales experienced double-digit increases in sales, dollar volume closed, average sales price and a double-digit decline in active listings.  Home sales experienced a 17% increase in units sold in 2013!  Dollar volume closed for 2013 increased 30% from 2012. 

The key driver of home sales is jobs.  According to the Greater Houston Partnerships’ 2014 forecast, the Houston metro area will create 69,800 jobs.  This prediction is slightly lower than jobs created in 2013 by about 10,000, but higher than Houston’s average of creating 61,900 net new jobs per year since 1993. 

Here’s a glance at the trends for the month and year-end:

Houston Real Estate Information Services

December 2013 & December YTD 2013

  Metric

 December 2013

%change from 2012

 December YTD 2013

% change-2012

 # of sales

5,813

14%

73,232

17%

 Dollar volume

$1,540,543,821

26%

$18,204,820,815

30%

 Avg. sales price

$265,017

10%

$248,591

10%

 Med. sales price

$188,500

11%

$180,000

9%

 Pending sales

2,512

-2%

39,813

5%

 # active listings

16,148

-17%

18,602

-23%

The average days on the market to sell a home in Houston currently stands at 61 days. On average, the time it takes to sell a home in Houston is 22% less than it took this time last year.

Houston Home Sales by Price Class for 2013

What price ranges sold the most in Houston and how have they changed?  Every price class from $100,000 and up is selling more homes than last year. An even more spectacular record is that every price class from $110,000 and up experienced double-digit increases. The top five highest percentage increases YTD by price class are:

  1. $400,000 – $499,999 – up 48%
  2. $600,000 – $699,999 – up 45%
  3. $500,000 – $599,999 – up 42%
  4. $300,000 – $399,999 – up 41%
  5. $1,000,000 and more- up 40%

Below is a table of the Top Ten Selling Price Classes in Houston for the year 2013:

Top Ten Selling Price Classes —Houston Single-Family Real Estate

 2013

Price Class

Sales YTD

Active

Listings

Months of Inventory

1. $200,000-$249,999

8,486

1,588

2.2

2  $300,000-$399,999

7,601

1,885

3.0

3. $250,000-$299,999

6,463

1,335

2.5

4. $400,000-$499,999

3,900

1,174

3.6

5. $130,000-$139,999

3,534

598

2.0

6. $140,000-$149,999

3,378

574

2.0

7. $150,000-$159,999

3,362

550

2.0

8. $120,000-$129,999

3,283

632

2.3

9. $160,000-$169,999

3,263

583

2.1

10.$110,000-$119,999

3,056

533

2.1

The Months of Inventory table above tells the story of Houston real estate in a nutshell.  The Top Ten Selling Price Classes show that every price class is in a very strong sellers’ market with very little inventory per price class in comparison to buyer demand.  Months of Inventory [MOI] indicates how long it would take to sell a home in a specific price class given the current rate of sales and assuming no new inventory enters the market.  Anything below 6 months is considered a sellers’ market and anything above 6 months is considered a buyers’ market.  Houston is in a distinct sellers’ market in every price class listed above and in most other price classes that didn’t make the list.

2014 may not be the record breaking year that 2013 was in terms of real estate sales and dollar volume closed.  If 2014 homes sales do not surpass home sales found in 2013, it will come very close!

The Houston overall market is so large; it rarely reflects the same trends as a submarket area located within its boundaries.  Some areas are exceeding Houston’s over all growth in sales while others are lagging behind.  For a breakdown of activity by area with a map, CLICK HERE.

To see the hottest selling geographical areas in Houston, CLICK HERE.

To search for homes by price range and map, go to www.GaryGreene.com.

Data provided by the Houston Association of Realtors® Information Services™, and The Real Estate Center for Texas A&M and written by Toni Nelson, Director of Strategic Initiatives for Better Homes and Gardens Real Estate Gary Greene

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2 thoughts on “2013 – The Best Year in Residential Real Estate in Houston’s history!

  1. I’ve been following your market reports for several years now. What’s your understanding of the cause for the seasonal January dip in sales prices (both median and average)? Is it the Homestead exemption bringing demand forward into December?

    Thanks,

    Greg

  2. That could be a factor in the cause for a seasonal dip – also in past years, I’ve observed that lower priced homes sell more at the beginning of the year. This frees up move-up buyers to purchase higher priced homes which impacts median and average over time in the following months. This year, we have a lower inventory of homes all together and especially in the high demand price ranges in Houston of $200,000-$400,000. It will be an interesting year to see if supply can keep up with current demand.

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