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Property Management Blog

Houston Real Estate Market Update for December 2014

Houston Real Estate Market Update for December 2014

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. 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.