Fast Pace for Houston Home Sales in 2016
The first six months of 2016 brought a rapid pace to Houston home sales, with 36,393 single-family homes sold. According to the Houston Association of Realtors, this is a 2.7% increase in sales volume over 2015. The surge in home sales defies concerns about the impact of an oil slump on the Houston economy.
With home demand remaining strong, Houston home prices have continued to rise. Median home prices increased to $230,538 as of June 2016, representing a 2.5% gain over 2015. “Median” means that half of the homes sold for more than this amount, and half sold for less.
Home sales are strongest in entry and mid-level price ranges, with homes priced from $150,000 to $500,000 drawing the most activity. Luxury home sales have softened amid higher home inventory in the upper price tiers, and uncertainties in the energy sector.
Condominium sales are following similar trends. The Texas Association of Realtors reports that Houston saw an increase in condo sales and an increase in condo prices throughout the first half of 2016. Condos priced at $300,000 or less are selling very quickly. Downtown locations that are close to public transportation and other amenities are seeing the strongest demand.
Condominium sales in the future could be boosted by the passage of H.R. 3700, a bi-partisan bill aimed at making FHA mortgages more accessible for condo purchases. The bill scales back restrictions and red tape that made FHA condo underwriting criteria difficult to meet.
If changes to the FHA condo program become law, as expected, it could open the doors to home ownership a little wider. Condos are generally priced less than single-family homes, making them an affordable option for first-time home buyers, and others who seek home ownership benefits with minimal upkeep.
Looking for more information about Houston real estate? We’re here to help you! Obtaining the expert advice of the KW Energy Corridor Team is the first step in a successful home purchase or sale! Contact us today for your personal real estate consultation!
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Houston, TX 77079