December MLS sales data shows the 43rd consecutive month of increasing sales. Supply of homes for sale is down 8.3% from December of 2013.
Months inventory metro wide is down from 2.6 to 2.5 months, an all time record low for the Houston market. 6 months is considered a balanced market, so the tight inventory is driving up prices. Prices are up 11.2% for 2014 after increasing 10% in 2013. HAR.com forecasts 6% appreciation for 2015, and jobs growth is projected to be about half that of 2014.
Sales overall were up 2.8% from a year ago, and up especially in the $250K and higher market price ranges. The median price increased from $188,500 to $209,600, or 10.9%. Foreclosures make up a minimal number of sales as the distress market has dried up.
The average rental price for leasing through the MLS increased 5.0%, indicating continuing strong demand for rental property.
Investor loan rates are under 4% for a 30 year fixed rate, making cash flow $400 + in excess of PITI, HOA and Management costs per month.
