Houston single-family home sales in February closed flat – meaning no increase or decline from last year. Despite being flat, year-to-date sales are up 4%. The market is about to break loose for the Spring market based on February pending sales which closed up 15%. Although the year seems off to a slow start, statistics below indicate it will wake up and run in March. Stay tuned and we’ll keep you posted.
Here’s a glance at the trends for the month and year:
*Pending sales are homes that are under contract and have not closed and indicate current buyer demand.
What we’re seeing in the first two months of the year is an increase in inventory and a slowing of rising average sales prices. This is a natural progression as inventory rises. The most positive sign is the increase in pending sales which indicates that more buyer demand is on the horizon.
Houston Home Sales by Price Class for 2018
The following price classes experienced the only increase in sales over February 2016:
- $250,000-$299,999 – up 7% with only 4 months of inventory
- $200,000-$249,999 – up 5% with only 2.9 months of inventory
- $500,000-$749,999 up 3% with 6.7 months of inventory
Keep in mind that homes priced below $500,000 are in a sellers’ market with at least 5.8 months of inventory or less as the price class declines in value . Example: Homes priced below $250,000 have less than 4 months of inventory. Homes priced above $500,000 are in a buyers’ market with 6.7 months of inventory or more. Months of Inventory is a statistic used to express how long it will take to deplete the inventory if no new homes come on the market.
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 overall 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 for the month in Houston, CLICK HERE.
To search for homes by price range and map, CLICK HERE.
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