December MLS sales data shows the 31st consecutive month of increasing sales. Supply of homes for sale is down 16.1% from December of 2012. Months inventory metro wide is down from 3.7 to 2.6 months, an all time record low for the Houston market. Six months is considered a balanced market, so the tight inventory is driving up prices, which are up 10.1% for 2013.
HAR.com forecasts 6% appreciation for 2014. Sales overall were up 18.8% from a year ago, and up especially in the $150K and higher market price ranges. The median price increased from $170,000 to $188,500, or 10.9%. Foreclosures comprised 6.5% of sales, down from 13% a year ago and 37% two years ago. The average rental price for leasing through the MLS increased 7.8%, indicating continuing strong demand for rental property.
Investor loan rates are at 4.875% for a 30 year fixed mortgage, helping cash flow for current purchasers be better than ever.
