It’s unimaginable how a city devastated by Hurricane Harvey less than 5 months ago would finish 2017 with sales exceeding the entire 2016 real estate market! Indeed, that’s exactly what happened. Houston single-family home sales lost minimal sales velocity in the last quarter of the year and the 4% increase in sales experienced in December helped drive the YTD market to 3% over 2016. There are no signs of slowing as pending sales rose 24% in December indicating January will remain healthy at least for closed sales. All metrics for residential real estate indicate a healthy market as can be seen in the graph below. Most economists with a pulse on Houston believe that the real estate market in 2018 will be the best we’ve ever seen.
Houston Home Sales by Price Cohort for 2017
What price ranges have the largest increase in sales in Houston in comparison to last year? The following price cohorts experienced the largest increase compared to 2016:
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 or 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, 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