Houston Home Sales Wrap 2016 on Strong Note
Year-over-year Houston single-family home sales surged 22.7% in November 2016, according to the Houston Business Journal. November’s figures represented the strongest year-over-year sales improvement since July 2013. The robust pace of Houston’s year-end home sales gives optimism for positive 2017 market conditions.
Home demand was highest in the price range of $250,000 to $499,999, followed by homes priced between $150,000 and $249,999. Even the luxury market, representing homes priced at $500,000 and above, experienced significant sales activity.
Houston home prices posted the strongest gains of any November on record. The median and average sales price of single-family homes both reached record highs, with median prices increasing 8.3% to $222,000, and the average price rising 7.2% to $281,671.
The inventory of Houston single-family homes for sale declined, shrinking from a 3.8 month supply in October to a 3.6 month supply in November. It’s interesting to note that Houston home prices reached higher levels in November 2016, even though home supply is a bit larger than a year ago. During November 2015, home supply stood at 3.4 months.
The late-year home buying rush could be attributed to several things. There is a prevailing belief that the worst is over for the Houston oil slump. We are also experiencing a net increase in population. The Houston Business Journal reports that 132,100 people, representing nearly 45,600 households, moved to Houston in the past year. Houston is projected to overtake Chicago as the third-largest city in America by the year 2030.
Rising interest rates are also motivating home buyers, who have found rates progressively moving higher since mid-November. The Federal Reserve recently increased its benchmark rate by 0.25%, and analysts predict three more Fed rate hikes during 2017. The combined forces of financial market volatility and Federal monetary policy could make mortgages more expensive during 2017.
Overall, home buying conditions will remain positive for much of Houston in the early months of 2017, but home inventory could become a challenge at the current pace of sales. Home buyers should prepare their financing now! Meanwhile, Houston home sellers should make the necessary improvements and repairs to attract top-dollar offers.
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
11757 Katy Fairway | Suite 930
Houston, TX 77079