HOUSTON HOUSING MARKET REMAINS STRONG THROUGH NOVEMBER

HOUSTON — (December 11, 2020) — Homes across the greater Houston area continued selling at a record pace despite historically low inventory, the start of the holiday season and the lingering coronavirus pandemic. A low supply of homes for sale and strong demand from homebuyers combined to push the average price to record territory. Once again, the high end of the market generated the strongest increase in consumer activity with mid-range homes also selling briskly. According to the latest Houston Association of Realtors (HAR) Market Update, 7,990 single-family homes sold in November compared to 6,359 a year earlier. That translates to a 25.6 percent increase and marks the sixth straight month of positive sales. Homes priced at $750,000 and above rocketed 88.4 percent compared to November 2019. That was followed by the $500,000 to $750,000 housing segment, which jumped 72.2 percent year-over-year. Homes between $250,000 and $500,000, which comprise the market’s biggest share of sales, shot up 50.3 percent. The single-family home average price climbed 15.0 percent to an historic high of $341,765 while the median price increased 12.0 percent to $270,000 – the second highest level of all time. Year-to-date sales are currently 9.0 percent ahead of 2019’s record pace. Sales of all property types totaled 9,660 – up 28.1 percent from November 2019. Total dollar volume for the month rose 43.9 percent to $3.1 billion. The lease market recorded an 11.1 percent decline in single-family housing while townhouse/condo leases fell 4.0 percent. “In my 50 years in the real estate business, I have never seen a market defy supply and seasonality the way Houston has – amid a pandemic, no less,” said HAR Chairman John Nugent. “It’s quite extraordinary to watch consumers take advantage of historically low interest rates and be able to choose their dream homes from among the tightest housing inventory this market has ever experienced.”  

Lease Property Update   Houston’s lease property market staged a lackluster performance in November. Leases of single-family homes fell 11.1 percent year-over-year while leases of townhomes and condominiums tumbled 4.0 percent. The average rent for single-family homes declined 5.5 percent to $1,882 while the average rent for townhomes and condominiums increased 11.5 percent to $1,674.   

November Monthly Market Comparison   Houston real estate registered its sixth consecutive month of positive sales in November, propelled by consumers taking advantage of historically low interest rates as they managed to find homes from among the most constrained inventory of all time. On a year-to-date basis, the market is running 9.0 percent ahead of 2019’s record pace. Single-family home sales, total property sales and total dollar volume all increased compared to November 2019. Pending sales shot up 34.5 percent. However, total active listings – or the total number of available properties – fell 27.0 percent as new listings trickled onto the market.   The sluggish pace of new listings combined with another strong month of sales volume drove single-family homes inventory down to a 2.2-month supply compared to 3.6 months a year earlier. For November, new listings rose just 1.6 percent year-over-year. Housing inventory nationally stands at a 2.5-months supply, according to the National Association of REALTORS (NAR).