Hot temperatures are not the only thing hot in Houston right now. June single-family residential real estate sales are 2% ahead of 2017. Sales may even get hotter in July due to 10% more contracts written [a.k.a. pending sales*] in June. An increase in pending sales indicates that sales will continue to be healthy at least through July. As one can observe from the table below – there are fewer homes on the market however buyer demand continues. These two factors put pressure on the average and median sales prices. Hopefully, more in inventory will become available to satisfy demand and keep homes from appreciating beyond affordability.
*Pending sales are homes that are under contract and have not closed and indicate current buyer demand.
As the table depicts, listings are down 2% for June in comparison to last June, however, listings are down 3% YTD. The average sales price and median sales price are slowly increasing and may continue to increase if the number of active listings continues to decline in high demand price ranges. The result is home price appreciation which is a good thing for homeowners but too much appreciation can impact housing affordability. The highest demand prices ranges can be viewed below.
Top Selling Home Sales by Price Class for 2018 YTD
- $150,000-$199,999 – 8,537 sales YTD – 1.8 Months of Inventory
- $200,000-$249,999 – 7,394 sales YTD – 3.2
- $300,000-$399,999 – 6,396 sales YTD – 5.7
- $250,000 – $299,999 – 5,273 sales YTD – 4.6
- $100,000 – $149,999 – 3,944 sales YTD –1.5
All of the above price classes are in a strong sellers’ market [they’re hot]!
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, 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, VIEW 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