It’s been a long time since we’ve had to report a decline in sales and dollar volume sold in any given month in Houston residential real estate sales but this month is the case. The Greater Houston Partnership announced December 18, 2018 that the Houston Metropolitan Area created 108,300 new jobs in the last 12 months and Houston has the largest employment in its’ history! Since jobs are the greatest driver of residential real estate sales, why the decline in January? Part of the answer is that January 2018 was a robust real estate recovery month from Hurricane Harvey. Thousands displaced from the disaster were able to receive claims and find new homes. Times are different now and while jobs drive housing, one metric indicates that demand for homes is still strong. View the pending sales metric below. It rose12% compared to January 2018. Pending sales are homes that went under contract but have not yet closed. All in all, it appears we have normal demand for homes but not as much as the recovery rebound from last year. As the months roll by, we’ll be able to see more clearly where the market is trending. Rest assured, strong employment is the most positive and powerful factor for home sales as we move forward into 2019.
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.
Houston Home Sales by Price Cohort for 2019
What price ranges have the largest number of sales in Houston in comparison to last year? The following price cohorts experienced the largest increase compared to 2018:
Based on the entire spectrum of Houston price cohorts in the table above, homes priced $399,999 and below are in a sellers’ market. Homes priced $400,000 and above are in a buyers’ market. You can see the difference in time on the market under “Months’ of Inventory”. Months’ of Inventory is a figure indicating [at the current rate of sale and with no new homes coming on the market] – how long it would take a home to sell in a specific price range. Generally, 6 months is a balanced market [neither buyer nor seller has the market advantage], a sellers’ market is below 6 months and a buyers’ market is above 6 months.
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, go to www.GaryGreene.com.