The Houston real estate market into record territory in June with the highest one-month sales volume of all time and new highs for both average and median prices. Single-family home rentals were also in strong demand.
According to the latest monthly report from the Houston Association of REALTORS® (HAR), 8,518 single-family homes sold in June compared to the last record high of 8,367 homes exactly one year earlier. That represents a 1.8% increase.
The single-family home median price rose 2.6% to $245,000 and the average price climbed 4.3% to $316,463. Those prices broke records set just last month and are the result of strong activity in the luxury market – homes priced at $750,000 and above – which saw an 18.4% year-over-year jump in sales volume.
“If there were concerns about rising home prices in the Houston market, you wouldn’t know it from all the home buying that took place in June,” said HAR Chair Kenya Burrell-VanWormer with JPMorgan Chase. “We continue to outperform last year’s record pace of home sales, but we’ll keep a close eye on inventory levels in the weeks ahead to ensure they are meeting demand.”
June sales of all property types broke the 10,000-mark for the first time in history, totaling 10,115. That represents an increase of 1.7% versus the same month last year. Total dollar volume was up 6.6%, reaching more than $3 billion.
Activity among leased property staged a mixed performance in June. Single-family home rentals rose 4.7% while leases of townhomes and condominiums fell 4.2%. The average rent for single-family homes increased 3.9% to $1,877 and the average rent for townhomes and condominiums rose 6.7% to $1,662.
Indicators for the Houston real estate market’s June performance were mostly positive, with single-family home sales, total property sales, pricing and total dollar volume all up compared to June 2017. Month-end pending sales for single-family homes totaled 8,396, a 10.2% increase over last year. Total active listings, or the total number of available properties, fell 3.9% to 40,198.
Single-family homes inventory recorded a 4.1-months supply in June, its highest level since last August when it reached a 4.3-months supply. For perspective, housing inventory across the U.S. also stands at a 4.1-months supply, according to the latest report from the National Association of REALTORS® (NAR).
Single-family home sales rose 1.8% in June with 8,518 units sold across the greater Houston area compared to 8,367 a year earlier. That is the highest one-month sales volume of all time. On a year-to-date basis, home sales are 2.6% ahead of 2017’s record pace. Prices reached historic highs in June. The median price increased 2.6% to $245,000. The average price rose 4.3% to $316,463.
Days on Market (DOM), or the number of days it took the average home to sell, declined from 50 to 48 days. Inventory registered a 4.1-months supply which is its highest level since August 2017 and equal to the current national inventory level reported by NAR. Broken out by housing segment, June sales performed as follows:
1 $1 – $99,999: decreased 29.0%
2 $100,000 – $149,999: decreased 23.7%
3 $150,000 – $249,999: increased 16.1%
4 $250,000 – $499,999: increased 18.0%
5 $500,000 – $749,999: increased 13.5%
6 $750,000 and above: increased 18.4%
HAR also breaks out the sales figures for existing single-family homes. Existing home sales totaled 7,186 in June, up 1.2% versus the same month last year. The average sales price increased 4.1% to $305,583 while the median sales price rose 4.4% to $235,000.
After a 7.2% decline in May, sales of townhomes and condominiums turned around in June, increasing 4.9% with 709 units sold versus 676 a year earlier. The average price fell 1.7% to $211,050 while the median price dropped 4.1% to $163,000. Inventory was unchanged at a 4.2-months supply.
