Houston Home Sales Reach Record High
Houston home sales reached a record high during June, according to the latest statistics from the Houston Association of Realtors, as published in the Houston Business Journal. We’re sharing the market highlights with you here, along with our own insights!
During June 2017, there were 8,414 single-family home sales in Houston. This is the highest monthly sales volume on record, and a gain of 8.3% from June 2016! The rise in sales was enabled by an improvement in 2017 home inventory, which increased to a 4.4 month supply in June. A year ago, home inventory stood at a 3.9 month supply.
There are a few key reasons for the improvement in Houston home inventories and sales. First, our economy continues to gain steam, and while energy prices are soft, they are not at the depths of the past. Our economic strength draws new residents, which in turn fosters home demand. We are also a truly global city, attracting residents and investors from around the world.
As Houston home prices rise, more homeowners are experiencing improved equity positions, which has enabled them to bring their properties to the market. As more homes reach the market, current homeowners also see opportunities to “trade up” to a larger or newer home. This sell-and-buy activity creates positive momentum for both home inventories and home absorption across multiple price ranges.
Luxury Home Sales Lead Houston Real Estate Market
Luxury home sales continue to lead our market activity, which further suggests that move-up buyers are playing a significant role. During June 2017, homes priced at $750,000 and up experienced a 13% increase in sales volumes over June 2016. Luxury home sales have now been going strong for eight consecutive months.
Homes priced from $500,000 to $749,999 saw sales volume increases of 6.9% on a year-over-year basis.
There is plenty of sales activity in the price ranges of $150,000 and $499,999, which posted sales volume gains of approximately 12%.
Robust sales activity is helping boost home prices. Houston median home prices increased 2.6% from June 2016 to June 2017, reaching $239,023. “Median” means that half of the homes sold for more than this amount, and half sold for less. When looking at home prices as an average, prices increased 1.5% during the same period, reaching $304,155.
While Houston generally remains a “seller’s market” there is much variety in local home prices and sales activity! Before you buy or sell a Houston home, obtain your personal real estate consultation from the KW Energy Corridor Team! Our professional resources, personalized service and unsurpassed market knowledge will help you accomplish your dreams. Contact us today!
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079