As you read here 11 days ago, Houston scored another month of increased single family (SF) home sales when compared to the same month last year. The Houston Association of REALTORS® (HAR) released statistics indicating 4,765 SF homes were sold in February, 8.4% more than February 2013. In a dramatic sign of how prices have increased, the dollar volume of sales in February increased 21.9%.
Inventory dropped to the lowest level since I began keeping statistics in December 2000. There were 15,870 homes actively on the market at the end of February, 296 fewer than at the end of January.This is also 40 fewer homes than was on the market in December 2000. Measured in months, inventory fell to 2.58 months. Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. I realize to most of my readers, months of inventory is meaningless. Let me explain the dire situation in this way. Most real estate professionals agree that a neutral market favoring neither the Buyer nor the Seller is 6 months of inventory. To achieve 6 months inventory in Houston would require an additional 21,000 homes to be actively on the market.
An early look at sales in March leads me to believe March will end up being the 34th consecutive month of increased home sales.
This is the type of analysis I use to assist both buyers and sellers as they make tough decisions in the fast changing market. If you would like to have representing you, a former CEO, highly educated business person who approaches real estate as an important financial decision, contact me. Whether Buying or Selling you will not find anyone more dedicated to your best interests.
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