Sales volume and pricing reach new highs
HOUSTON — (July 11, 2018) — Neither scorching temperatures nor vacation plans could stop home buyers from pushing the Houston real estate market into record territory in June, as they generated the greatest one-month sales volume of all time and sent average and median prices to new highs. Single-family home rentals were also in strong demand.
According to the latest monthly report from the Houston Association of REALTORS® (HAR), 8,518 single-family homes sold in June compared to the last record high of 8,367 homes exactly one year earlier. That represents a 1.8 percent increase.
The single-family home median price (the figure at which half of the homes sold for more and half sold for less) rose 2.6 percent to $245,000 and the average price climbed 4.3 percent to $316,463. Those prices broke records set just last month and are the result of strong activity in the luxury market – homes priced at $750,000 and above – which saw an 18.4 percent year-over-year jump in sales volume.
“If there were concerns about rising home prices in the Houston market, you wouldn’t know it from all the home buying that took place in June,” said HAR Chair Kenya Burrell-VanWormer with JPMorgan Chase. “We continue to outperform last year’s record pace of home sales, but we’ll keep a close eye on inventory levels in the weeks ahead to ensure they are meeting demand.”
June sales of all property types broke the 10,000-mark for the first time in history, totaling 10,115. That represents an increase of 1.7 percent versus the same month last year. Total dollar volume was up 6.6 percent, reaching more than $3 billion.
Lease Property Update
Activity among leased property staged a mixed performance in June. Single-family home rentals rose 4.7 percent while leases of town homes and condominiums fell 4.2 percent. The average rent for single-family homes increased 3.9 percent to $1,877 and the average rent for town homes and condominiums rose 6.7 percent to $1,662.
June Monthly Market Comparison
Indicators for the Houston real estate market’s June performance were mostly positive, with single-family home sales, total property sales, pricing and total dollar volume all up compared to June 2017. Month-end pending sales for single-family homes totaled 8,396, a 10.2 percent increase over last year. Total active listings, or the total number of available properties, fell 3.9 percent to 40,198.
Houston Real Estate Highlights in June
§ Single-family home sales rose 1.8 percent year-over-year, with 8,518 units sold, the largest one-month sales volume of all time;
§ Days on Market (DOM) for single-family homes declined from 50 to 48 days;
§ Total property sales reached record levels, rising 1.7 percent, with 10,115 units sold – the first time that number has broken the 10-thousand mark;
§ Total dollar volume increased 6.6 percent to slightly more than $3 billion;
§ The single-family home median price rose 2.6 percent to $245,000, reaching an all-time high;
§ The single-family home average price increased 4.3 percent to a record high of $316,463;
§ Single-family homes months of inventory was at a 4.1-months supply, the highest level since last August and equal to the national inventory level;
§ Townhome/condominium sales rose 4.9 percent, with the average price down 1.7 percent to $211,050 and the median price down 4.1 percent to $163,000;
§ Leases of single-family homes climbed 4.7 percent with the average rent up 3.9 percent to $1,877;
§ Volume of townhome/condominium leases fell 4.2 percent with the average rent up 6.7 percent to $1,662.