Houston Home Prices Rise in October
Houston home sales are on pace with the prior year, and home prices are showing gains, according to October sales data from the Houston Association of Realtors. In fact, single-family home prices set new records for the month of October, with the average Houston home price increasing 2.2% to $277,904.
Looking at the numbers another way, the median Houston home price increased by 6.3% to $218,000. “Median” means that half of the homes sold for more than this amount, and half of them sold for less.
Meanwhile, sales volumes are slightly better than what we experienced during October 2015. In a year-over-year comparison, sales of single-family homes and all property types increased less than 1%. There were 5,916 single-family home sales in October 2016, up 0.4% from October 2015. When accounting for sales of all residential properties, including attached and detached homes, sales volumes increased by 0.7%.
Houston home sales are seeing the greatest volumes in the price range between $150,000 and $499,999. Sales of homes priced above $500,000 are down by 2% compared to a year ago. Entry-level homes priced at $150,000 or less had the biggest decline in sales volumes, with sales activity down by 24%. This does not represent a lack of demand; home inventory in this price range is very limited.
Overall, we saw more homes come to market during October 2016, boosting home inventory by 9.2% compared to last year. This helped push pending home sales up by 16.4%. Home supply, measured by the number of months it would take to clear existing inventory at the current pace of sales, fell to 3.8 months. Nationally, home supply stands at 4.5 months.
Typically, Houston home sales slow during the autumn months. It is encouraging that October 2016 sales volumes have kept pace with October 2015, especially during a time of weakened oil prices and attrition in the energy sector. The fact that we are seeing rising home prices in October speaks to the resilience of the Houston real estate market. It also bodes well for Houston home sales in early 2017.
Please remember that home prices and sales trends will vary by neighborhood. Your KW Energy Corridor agent is your local market expert! When you need more information about Houston real estate, we are 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!
KW Energy Corridor Team
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Houston, TX 77079