Houston Real Estate Sees Positive Start to 2016
The latest statistics for Houston real estate shows better-than-expected market activity for January 2016. The Houston Association of Realtors reports that homes priced between $150,000 – $249,999 saw an 8.8% increase in sales volume compared to last year. The average home sales price also increased to the highest level posted during any January in Houston, rising to $262,663.
Overall pending home sales, representing properties under contract, are up 9.1% from January 2015.
It should be noted that our highly-localized markets have a diversity of sales trends. Houston luxury homes priced at $1 million or more are seeing longer days-on-market and softening prices. Homes listed at $250,000 and up have more competition on the market than they did a year ago. The increase in Houston home inventory is likely to temper asking prices in some areas. At present, this is best described as a “dip” and not a complete reversal in market direction.
Single-family home inventory increased by 30.5% in January 2016. This puts our home inventory at a 3.3 month supply. This is a slight increase over the past several months; our home inventory has stood at 3.1 months of supply since May 2015. Nationally, home inventory currently stands at 3.9 months of supply. These figures represent market conditions that remain advantageous for most home sellers.
Another positive trend for the Houston real estate market is the sharp reduction in distressed properties. According to CoreLogic, Houston saw a 28% drop in foreclosures during 2015. Meanwhile, serious delinquencies dropped 14.7%. Fewer homeowners are “under water” with their mortgages, and fewer are falling behind on payments.
In fact, mortgage delinquencies stood at a mere 2.6% in Houston during 2015 – well within normal historical averages. With fewer distressed home sales on the market, and a very small pipeline of serious delinquencies, Houston home prices are unlikely to experience dramatic shifts.
Please remember that market conditions are always changing. Statistics provide insights – but not a crystal ball! If you are buying or selling a home in the Houston Energy Corridor, let the KW Energy Corridor Team provide you with expert guidance! We will be happy to provide you with the latest sales trends, market data and community news. Contact us today for your real estate consultation!
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079