Riding the success of growth through the first quarter of 2016, the Houston real estate market has continued to thrive thanks to a steady increase in available homes. According to a Houston Association of Realtors report, a total of 7,343 single-family homes sold in the month of May, an increase of about 10 percent year-over-year.
The report showed that the majority of homes sold were priced in the mid-range of $150,000 to $500,000, with average and median home prices showing very little change since May 2015. Total home sales increased 3.6 percent year-to-date.
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Houston totals in May
The total number of active listings in Houston at the end of May was 35,416, a 17.4 percent boost year-over-year. This has also helped bolster Houston’s inventory from a three month supply to 3.6 months.
HAR Chairman Mario Arriaga said the market conditions are more normal this year as compared to 2015 because of a rise in inventory.
“A year ago, the supply of homes was historically low, which increased buyer-side demand and pushed up pricing,” he said in a press release. “These are the fundamental forces of supply and demand, and with more available housing and an easing of prices, we look forward to a healthy pace of sales throughout the summer.”
According to National Association of Realtors, the national current inventory is at 4.7 months supply.
Total property sales in May reached 8,703, an increase of 7.1 percent. Total dollar volume also rose from $2,229,902,866 to $2,392,124,785 — a 7.3 percent jump.
Data courtesy Houston Association of Realtors
Single-family market
The median price of single-family homes showed a thin increase of $100 since last year, holding steady at $225,000.
Single-family homes priced between $150,000 and $249,999 saw an increase in sales of about 20 percent. The next price tier — $250,000 to $499,999 — rose 15.4 percent in sales amount. Homes priced outside of those high and low points decreased, especially those priced below $80,000.
Growth in home sale price pushed up the median and average sale price year-over-year to $211,000 and $277,957, respectively.
Condo sales and rentals
The total number of condo units sold remained at 621, unchanged from 2015. Although average price declined 2.6 percent ($198,411), the median price jumped 7.6 percent ($163,000). Condo inventory also grew from 2.6 months to 3.4 months supply.
Renters of single-family homes and condos both jumped from the previous year, although prices did not change. Home rentals jumped 4.1 percent while condo rentals bumped up 10.7 percent.
