Anyone concerned about the volatility of the stock market should consider investing in residential real estate in Houston, Texas! The first month of the year started out with a 9% increase in sales and a 7% increase in dollar volume sold. The average sales price was down 2% from last year however median price is up 4%.
All metrics for residential real estate indicate a healthy start for 2018 as can be seen in the graph below. Most economists with a pulse on Houston real estate believe that 2018 will be one of the best residential real estate years we’ve ever seen.
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 2018
What price ranges have the largest increase in January home sales in Houston in comparison to last year? The following price cohorts experienced the largest increase compared to 2017:
Based on the entire spectrum of Houston price cohorts in the table above, homes priced $499,999 and below are in a sellers’ market. Homes priced $500,000 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.
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