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(This content was sourced from The Houston Business Journal)
Houston Housing Market showing Growth
Houston’s housing market recorded year-over-year increases in number of sales, prices, inventory and more in March, while leases skyrocketed in the rental market, according to the Houston Association of Realtors’ monthly report.
However, the HAR report does note that the housing market was facing a lot of uncertainty over oil prices in March 2016, when both the number of homes sold and the average price decreased.
There were 7,013 single-family homes sold last month, up 11.7 percent from 6,278 in March 2016. Total property sales increased 10.5 percent to 8,495, and the total dollar volume from all sales was up 15.7 percent to $2.27 billion.
The increases in average and median sales prices for single-family homes were less drastic. The average hit $284,279, up 4.6 percent from last year, and the medium was up 5.8 percent to $227,530. Both figures are records for a March in Houston.
All pricing segments saw increases in sales except for homes priced $149,999 and less. Homes priced between $250,000 and $499,999 saw the biggest jump in sales, up 23.1 percent year over year, and those priced at $750,000 and above came in second with a 19 percent increase.
Forward Looking Indicators also increase
Forward-looking indicators also saw big year-over-year increases. Total active listings were up 9.9 percent, and single-family pending sales were up 16.7 percent. Single-family inventory increased to 3.8 months in March, up from a 3.5-month supply both the previous month and a year earlier. Months of inventory estimates the number of months it would take to sell all the home listings on the market today based on the pace of sales over the past 12 months. Nationwide, inventory stands at a 3.8-month supply.
Meanwhile, rental demand skyrocketed, with a 36.6 percent increase in single-family home leases and a 37.8 percent in townhome/condominium leases. However, the average rent declined for both single-family homes, down 4.9 percent to $1,647, and townhomes/condominiums, down 5.6 percent to $1,487.
“Houston home sales blossomed in March, but we also saw tremendous activity in the rental market,” HAR Chair Cindy Hamann with Heritage Texas Properties said in HAR’s press release. “A healthy pace of new listings helped inventory levels grow, which is critical if we are to maintain the positive momentum.”
Olivia Pulsinelli is the senior web editor for the Houston Business Journal’s award-winning website. Follow her on Twitter for more.