Luxury market enjoys its first sales increase in over a year
HOUSTON — (December 14, 2016) — The Houston housing market registered healthy gains in November thanks to more plentiful inventory, with single-family home sales surging nearly 23 percent compared to one year earlier when oil jitters sent sales tumbling. Sales among luxury homes (priced at $500,000 and above) —the segment most constrained by the ailing energy industry— leapt almost 33 percent. That represents the first increase that segment has seen since August 2015. For perspective, the increases place the market about 10 percent ahead of 2014 sales volumes.
Homes priced between $150,000 and $500,000 enjoyed continued strong homebuyer demand. In addition, both median and average price reached record highs for a November.
According to the latest monthly report prepared by the Houston Association of Realtors (HAR), a total of 5,706 single-family homes sold in November compared to 4,651 a year earlier. On a year-to-date basis, home sales are up 2.7 percent compared to this point in 2015. Inventory levels grew slightly from a 3.4-months supply to 3.6 months.
"It looks like the Houston real estate market is sprinting toward the 2016 finish line, based on the solid numbers in November’s report,” said HAR Chairman Mario Arriaga with First Group. “The market has shown tremendous resilience throughout the year in the midst of a struggling energy sector, and we are especially encouraged by the strong sales volume that the luxury home segment registered last month."
The single-family home median price (the figure at which half of the homes sold for more and half sold for less) rose 8.3 percent to $222,000 That marks the highest median price ever for a November. The average price increased 7.2 percent to $281,671, which also represents a November high.
November sales of all property types in Houston totaled 6,890, up 21.4 percent from the same month last year. Total dollar volume for properties sold in November shot up 28.7 percent to $1.8 billion.
The Houston housing market saw across-the-board gains in November, with single-family home sales, total property sales, total dollar volume and pricing all up compared to November 2015.
Month-end pending sales for single-family homes totaled 5,799, an increase of 15.5 percent compared to last year. Total active listings, or the total number of available properties, rose 8.6 percent from November 2015 to 36,151.
Single-family homes inventory grew from a 3.4-months supply to 3.6 months. For perspective, housing inventory across the U.S. currently stands at a 4.3-months supply, according to the latest report from the National Association of Realtors (NAR).
Single-family home sales totaled 5,706, up 22.7 percent from November 2015. That is the greatest year-over-year sales volume increase for a single month since July 2013. The median price rose 8.3 percent to a November high of $222,000. The average price climbed 7.2 percent to $281,671, also a record high for a November. Days on Market (DOM), or the number of days it took the average home to sell, edged up to 57 days versus 55 last year.
Broken out by housing segment, November sales performed as follows:
HAR also breaks out the sales figures for existing single-family homes. Existing home sales totaled 4,741 in November, up 23.3 percent versus the same month last year. The average sales price rose 9.6 percent to $264,563 while the median sales price jumped 10.8 percent to $205,000.
Townhome and condominium sales were also up in November, with 502 units selling in versus 438 a year earlier. That represents a 14.6 percent increase. The average price rose 12.6 percent to $208,388, while the median price surged 22.0 percent to $163,000. Inventory expanded from a 3.1-months supply to 3.7 months.
The lease market had a mixed performance in November. Single-family home leases rose 3.2 percent, while townhome/condominium leases declined 2.4 percent. The average rent for single-family homes was up 1.0 percent to $1,724, while the average rent for townhomes/condominiums was down 2.6 percent to $1,498.