The Houston market rose for its tenth consecutive month of July, but prices are showing signs of moderation. We now have a 4.5 month supply of housing for sale which is the highest in five years. We currently have 44,299 properties for sale, up 16.7% from July of 2016.
The median price also flattened, where half the houses sell for more, and half for less. The July median sales price was $230,000, which is -.6% lower than a year ago, and indicating that prices are leveling out. Pending sales are up 9.8% from a year ago, indicating that overall the pace of sales remains strong.
Sales of houses priced under $100,000 were down 11.9% over 2016 as a result of little inventory available in this price range. Sales of $100,000 to $150,000 houses were down 1.8%, again a sign of too little inventory available to investors and entry level buyers rather than market softness. We continue to find that entry level priced homes attract multiple offers the first few days on the market. Many owner occupant buyers are now using conventional instead of FHA loans, as many sellers at the entry level can pick and choose among offers with easier, more likely to close loans. Investors are also actively paying retail prices for single family rentals.
Houses selling for $150,000 to $250,000 saw a 7.8 % increase in number sold. Sales of houses selling for $250,000 to $500,000 increased 3.2%, while those $500,000 to $750,000 level. Houses priced at $750,000+ saw increased sales of 19.8% compared to a year ago. All changes even since May’s numbers show a slowing pace of sales through all price ranges.
The number of single family homes leased through HAR.com went up 15.6% compared to last July, though the average rent dropped 3.2% $1815.
Houston Real Estate Highlights in July
- Single-family home sales rose for the tenth straight month, up 5.0 percent year-over-year with 7,440 units sold;
- On a year-to-date basis, single-family home sales remain 6.8 percent ahead of the 2016 volume;
- Total property sales increased 4.5 percent with 8,821 units sold;
- Total dollar volume climbed 7.5 percent to $2.5 billion;
- The single-family home median price remained statistically unchanged at $230,000;
- The single-family home average price increased 2.4 percent to $299,131;
- Single-family homes months of inventory grew to a 4.5-months supply, the highest level since September 2012;
- Townhome/condominium sales fell 9.0 percent, with the average price up 1.8 percent to $201,148 and the median price down 6.2 percent to $150,000;
- Leases of single-family homes jumped 15.6 percent with average rent down 3.2 percent to $1,815;
- Volume of townhome/condominium leases rose12.3 percent with average rent down 5.1 percent to $1,546.