Houston Market Trends

We may never know what prompted the slower home sales in July, though speculation falls on vacationing families, but Houston’s home sales made up for the slump with an increase in August.

Traditionally, things that affect the housing market are demographic trends, interest rates, the economy, and the government.

August showed an 8.2 year-over-year gain in single family homes. While Bloomberg reports higher priced homes decreasing in sales, Houston’s August rebound included an increase in homes costing over $500,000. Homes priced over $500,000 had not seen an increase in sales since early 2015. Almost 8,000 homes were sold in August which is a 1.5 percent gain over this time last year. Even the median home price of single family homes increased in August. Houston had the highest average single-family sales price in August 2016 compared to similar months, the last 5 years making August a record month. Home sales were lower across the rest of America.

Historically, August and September have been good months for home sales in the Houston area. Home sales in Houston are supported by a strong market and good inventory. The current home inventory for single family homes in Houston has a 4 month supply. Houston, also being very diverse, appeals to multiple demographics.

Despite issues in the energy market, Houston’s housing market is very strong and predictions continue to show a strong market in the coming months. Mark Dotzer, a former chief economist for Texas A&M, predicts 2016 to be the “peak of difficulty” with the housing market in an interview with Houston Business Journal, meaning things can only go up from here.

Another positive point for Houston is the job market.  While the Department of Labor reported flat or decreased jobs across the nation last month, Texas continued to show growth and Houston’s job force was stable. Economists believe we are at the end of the oil slump and are well into recovery – an occurrence that will bode positively for both the job and housing markets in the months to come.