Houston Housing Market Report – February
Houston Association of REALTORS (HAR) reports that the Houston real estate market withstood most of the effects of the downturn in the energy industry in February. Home sales went up two percent compared to February of last year. Houses priced between $150,000 and $500,000 saw an increase in sales volume while the luxury home market saw a decline in home sales.
“Sales are still down in the luxury home market, but, just as we saw in January, mid-range housing performed well and inventory levels grew. There was also a lot of activity among rental properties.” – HAR Chairman
The Greater Houston area saw a total of 4602 home sales compared to 4505 in February, 2015. The inventory of homes grew to a 3.4 months supply from a 2.7 months supply. The National Association of REALTORS (NAR) reports that the national supply of homes is currently at 4 months. The months of inventory denotes how long it will take to sell all current home listings if no new listing became available. In the real estate world, seller is deemed to have more control over price and terms when inventory is below 5 months.
The Greater Houston area is experiencing a sellers market for homes in the lower price ranges and a buyers market in the luxury home segment
Break down of the February home sales figures:
- $1 – $79,999: decreased 1.1 percent
- $80,000 – $149,999: decreased 7.3 percent
- $150,000 – $249,999: increased 9.5 percent
- $250,000 – $499,999: increased 4.4 percent
- $500,000 and above: decreased 12.0 percent
- Single-family home sales rose 2.2 percent compared to last February
- At 260,872, the single-family home average price reached its highest level ever for a February;
- Single-family homes months of inventory climbed to a 3.4-months supply versus 2.7 months a year earlier;
- Townhomes/condominium sales fell 17.8 percent with the average price down 1.3 percent at $199,205 and the median price up 2.8 percent to $150,000;
- Leases of single-family homes soared 14.6 percent with rents up a fractional 0.6 percent at $1,688;
- Leases of townhomes/condominiums climbed 10.3 percent with rents up 2.5 percent to $1,545.
The 14.6% increase in leases of single-family homes is good news for those of you who are considering investing in real estate.
There is a lot to be excited about the state of the Houston housing market in February and the Houston economy in general. We are also seeing some challenges because of the downturn in the oil industry. A real estate professional who knows the market well can guide you in making the best decision for your particular situation. Please call us or email us if you are considering buying a new home, investment property or selling your home.
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