Positive Outlook for Houston Home Sales in 2017
The strong performance of the Houston residential real estate market during 2016 signals positive trends for 2017, according to the Houston Business Journal and the Houston Association of Realtors. During 2016, Houston saw 76,449 single-family home sales, enough for an all-time record. The previous record for Houston home sales was 75,470, set in 2014.
Taken as a whole, the dollar volume of Houston home sales increased 4.2% to $24.5 billion during 2016, beating the dollar volume record set in 2015.
During the final month of 2016, home sales continued a brisk pace that will likely carry into 2017. In a year-over-year comparison, December 2016 home sales were up 5% from December 2015, with 7,868 properties sold.
The average price for a single family home in December was $294,512, an increase of 4.3% from December 2015. Examined another way, the median home price reached $225,903 in December 2016, an increase of 2.7% from the prior year. “Median” means that half of the homes sold for more than this price, and half sold for less.
Houston home inventory ended 2016 with a 3.3 month supply. This means that if no additional homes came to the market, it would take a little less than three and a half months to sell the existing inventory, at the current pace of sales. Whenever home inventory stands at less than a six month supply, conditions are deemed favorable to home sellers.
Pending home sales are another indicator of market strength. Pending sales represent homes under contract that have not yet closed. December 2016 pending sales of single-family homes are up 11.7% compared to December 2015. This is a sign of a robust market that will carry sales momentum into January and February of 2017.
Overall, home buyers are very active in Houston, and home sellers should prepare now for a successful sale! The KW Energy Corridor Team provides complete pre-sale consultations to explain your home value and your opportunities in the market!
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