My early analysis of available data from The Houston Association of REALTORS® (HAR) indicates that the number of single family homes sold in February will show an increase compared to February 2013. I expect the increase will be less than 10%. This will make February the 33rd consecutive month with increased home sales when compared to the same month last year.
While many, probably including newspaper columnists, will emphasize the “slowing” increase in sales, it is inevitable. Houston cannot sustain double digit increases in home sales. To do so would require that every family own more than one home. I expect that we will settle in to a sustainable 3 to 5% growth rate when the market becomes “normal”
The wild card continues to be inventory. From what I have seen, when inventory is reported for the end of February it will show an increase of fewer than 1,000 homes. To get to a neutral market where neither Buyers nor Sellers have an advantage would require an increase of more than 20,000 homes actively on the market.
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