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 HOUSTON — (November 9, 2022) — Rapidly-rising mortgage rates dampened home sales in the Greater Houston area in October as the housing market cool down continues. However, home prices are still well above where they were a year ago. October marked the seventh consecutive month of declining sales and rising inventory as the market continues toward a more normalized, pre-pandemic pace. 

According to the Houston Association of Realtors’ (HAR) October 2022 Market Update, single-family home sales fell 22.8 percent, with 6,641 units sold compared to 8,597 in October 2021. On a year-to-date basis, the market now trails 2021’s record-setting volume by 6.7 percent.

All housing segments experienced negative sales in October. The  smallest decline in sales was recorded among homes priced $500,000 and  $999,999, which fell 6.6 percent. With fewer homes priced below $250,000, some consumers pivoted to the rental market. HAR will examine  those trends in the October 2022 Rental Home Update, to be released next Wednesday, November 16. 

“The Houston housing market is heading towards more balanced  conditions,” said HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene. “We saw years of unprecedented growth,  and it appears the market is finally nearing pre-pandemic levels. Higher  mortgage rates are softening buyer demand. But as prices level off and  inventory grows, we’re going to see more consumers move from the sidelines to the marketplace.”

The average price of a single-family home rose 7.2 percent in October to $403,712 –below the record high of $438,290 reached earlier this year in May. The median price jumped 8.4 percent to $330,500, which is also below the highest median of all time, $354,000, reached in June 2022.  

The average price for a single-family home in Houston first broke the $400,000 mark in March of this year. The median price has held above  $300,000 since May of 2021.

October Monthly Market Comparison

Homebuying activity slowed for a seventh straight month in October,  with mortgage interest rates hovering around seven percent, more than double what it was a year ago, as well as a lack of housing inventory below $400,000. Year-over-year single-family home sales fell 22.8  percent. On a year-to-date basis, sales are trailing last year’s record  pace by 6.7 percent.

The monthly housing measurements for October yielded mixed readings. In addition to the drop in single-family home sales, total property sale and total dollar volume declined, and pending sales fell 23.4 percent.  Active listings (the total number of available properties) jumped 43.0  percent.

Months of inventory continues to grow, reaching a 2.8-months supply in  October. That is the highest level since July of 2020 when it was 2.9  months. Housing inventory nationally stands at a 3.2-months supply,  according to the latest report from the National Association of Realtors  (NAR). A 6.0-months supply is generally considered make up a “balanced  market,” in which neither the buyer nor the seller has an advantage.

Single-Family Homes Update

Single-family home sales fell 22.8 percent in October with 6,641 units sold across the Greater Houston area compared to 8,597 a year earlier.  In October, the median price increased 8.4 percent to $330,500 while the average price rose 7.2 percent to $403,712. 

For a pre-pandemic perspective, October sales are down 7.6 percent compared to October 2019, when a total of 7,187 single-family homes sold. The median price then was 37.7 percent lower, at $240,000, and the average price, at $298,158, was 35.4 percent lower. Sales are 3.5  percent above where they were five years ago, in October 2017, when  volume totaled 6,417. Back then, the median price was $226,500 and the  average price was $284,659 – reflecting pricing jumps of 45.9 percent  and 41.8 percent, respectively

Days on Market, or the actual time it took to sell a home, grew from 32  to 43 days. Inventory registered a 2.8-months supply compared to 1.8  months a year earlier. That is the greatest supply of homes on the  market since July 2020. The current national inventory stands at 3.2  months, as reported by NAR.

 Houston Rental Update

According to the Houston Association of Realtors’ September 2022 Rental Market Update, single-family home rentals shot up 25.7 percent year-over-year, with the average lease price up 2.9 percent to $2,180. A total of 3,201 leases were signed compared to 2,545 in September 2021.

  Houston Real Estate Highlights in September 

• Single-family home sales fell 17.0 percent year-over-year, the sixth  consecutive decline of 2022 as the market continues toward a more  normalized, pre-pandemic pace;
• Despite the overall sales volume decline, the high end of the market  flourished with the $500,000 to $1M housing segment establishing itself  as the top-performing segment in September, up 12.6 percent  year-over-year;
• Days on Market (DOM) for single-family homes grew from 29 to 37 days;
• Total property sales were down 17.0 percent with 9,387 units sold;
• Total dollar volume was off 8.5 percent at $3.7 billion;
• The single-family average price rose 11.6 percent to $414,776; 
• The single family median price increased 14.7 percent to $343,950;
• Single-family home months of inventory registered a 2.7-months  supply, up from 1.7 months a year earlier. That is the greatest  inventory level since July of 2020;
• Townhome/condominium sales experienced their fourth consecutive  monthly decline, falling 17.6 percent, with the average price up 7.5  percent to $257,781 and the median price up 4.8 percent to $220,000.

 HOUSTON — (November 9, 2022) — Rapidly-rising mortgage rates dampened home sales in the Greater Houston area in October as the housing market cooldown continues. However, home prices are still well above where they were a year ago. October marked the seventh consecutive month of declining sales and rising inventory as the market continues toward a more normalized, pre-pandemic pace. 

According to the Houston Association of Realtors’ (HAR) October 2022 Market Update, single-family home sales fell 22.8 percent, with 6,641 units sold compared to 8,597 in October 2021. On a year-to-date basis, the market now trails 2021’s record-setting volume by 6.7 percent.

All housing segments experienced negative sales in October. The  smallest decline in sales was recorded among homes priced $500,000 and  $999,999, which fell 6.6 percent. With fewer homes priced below $250,000, some consumers pivoted to the rental market. HAR will examine  those trends in the October 2022 Rental Home Update, to be released next Wednesday, November 16. 

“The Houston housing market is heading towards more balanced  conditions,” said HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene. “We saw years of unprecedented growth,  and it appears the market is finally nearing pre-pandemic levels. Higher  mortgage rates are softening buyer demand. But as prices level off and  inventory grows, we’re going to see more consumers move from the sidelines to the marketplace.”

The average price of a single-family home rose 7.2 percent in October to $403,712 –below the record high of $438,290 reached earlier this year in May. The median price jumped 8.4 percent to $330,500, which is also below the highest median of all time, $354,000, reached in June 2022.  

The average price for a single-family home in Houston first broke the $400,000 mark in March of this year. The median price has held above  $300,000 since May of 2021.

October Monthly Market Comparison

Homebuying activity slowed for a seventh straight month in October,  with mortgage interest rates hovering around seven percent, more than double what it was a year ago, as well as a lack of housing inventory below $400,000. Year-over-year single-family home sales fell 22.8  percent. On a year-to-date basis, sales are trailing last year’s record  pace by 6.7 percent.

The monthly housing measurements for October yielded mixed readings. In addition to the drop in single-family home sales, total property sale and total dollar volume declined, and pending sales fell 23.4 percent.  Active listings (the total number of available properties) jumped 43.0  percent.

Months of inventory continues to grow, reaching a 2.8-months supply in  October. That is the highest level since July of 2020 when it was 2.9  months. Housing inventory nationally stands at a 3.2-months supply,  according to the latest report from the National Association of Realtors  (NAR). A 6.0-months supply is generally considered make up a “balanced  market,” in which neither the buyer nor the seller has an advantage.

Single-Family Homes Update

Single-family home sales fell 22.8 percent in October with 6,641 units sold across the Greater Houston area compared to 8,597 a year earlier.  In October, the median price increased 8.4 percent to $330,500 while the average price rose 7.2 percent to $403,712. 

For a pre-pandemic perspective, October sales are down 7.6 percent compared to October 2019, when a total of 7,187 single-family homes sold. The median price then was 37.7 percent lower, at $240,000, and the average price, at $298,158, was 35.4 percent lower. Sales are 3.5  percent above where they were five years ago, in October 2017, when  volume totaled 6,417. Back then, the median price was $226,500 and the  average price was $284,659 – reflecting pricing jumps of 45.9 percent  and 41.8 percent, respectively

Days on Market, or the actual time it took to sell a home, grew from 32  to 43 days. Inventory registered a 2.8-months supply compared to 1.8  months a year earlier. That is the greatest supply of homes on the  market since July 2020. The current national inventory stands at 3.2  months, as reported by NAR.

 Houston Rental Update

According to the Houston Association of Realtors’ September 2022 Rental Market Update, single-family home rentals shot up 25.7 percent year-over-year, with the average lease price up 2.9 percent to $2,180. A total of 3,201 leases were signed compared to 2,545 in September 2021.

  Houston Real Estate Highlights in September 

• Single-family home sales fell 17.0 percent year-over-year, the sixth  consecutive decline of 2022 as the market continues toward a more  normalized, pre-pandemic pace;
• Despite the overall sales volume decline, the high end of the market  flourished with the $500,000 to $1M housing segment establishing itself  as the top-performing segment in September, up 12.6 percent  year-over-year;
• Days on Market (DOM) for single-family homes grew from 29 to 37 days;
• Total property sales were down 17.0 percent with 9,387 units sold;
• Total dollar volume was off 8.5 percent at $3.7 billion;
• The single-family average price rose 11.6 percent to $414,776; 
• The single family median price increased 14.7 percent to $343,950;
• Single-family home months of inventory registered a 2.7-months  supply, up from 1.7 months a year earlier. That is the greatest  inventory level since July of 2020;
• Townhome/condominium sales experienced their fourth consecutive  monthly decline, falling 17.6 percent, with the average price up 7.5  percent to $257,781 and the median price up 4.8 percent to $220,000.

HOUSTON — (October 12, 2022) — Consumers kept the high end of the Houston housing market humming in September even as the market collectively continued transitioning to more normal, pre-pandemic levels. Sales overall were off for a sixth consecutive month due largely to the persistent lack of inventory and inflationary headwinds that include rising interest rates. However, the inventory landscape is showing signs of improvement for consumers as an uptick in new listings helped boost overall supply to its highest level in two years. 

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According to the Houston Association of Realtors’ (HAR) September 2022  Market Update, single-family home sales fell 17.0 percent, with 7,664  units sold compared to 9,235 in September 2021. On a year-to-date basis,  the market now trails 2021’s record-setting volume by 5.1 percent.

The top sales volume performer was the $500,000 to $1 million housing segment, which rose 12.6 percent. The only other segment to remain in positive territory was $1M and above housing, which increased by 7.2  percent. Many would-be home buyers continued to turn to rental housing options in September. HAR will examine those trends in the September  2022 Rental Home Update, to be released next Wednesday, October 19.

“The Houston housing market consists of many concurrent trends,” said  HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary  Greene. “The high end of the market continues to perform well, as is the rental market. But because of a lack of homes priced below $400,000,  the market as a whole is slowing to levels we were accustomed to before the pandemic. The most encouraging news of all is the gradual  build-back of inventory, which should yield more options for consumers  going forward.”

Housing across Greater Houston has experienced historic appreciation since the pandemic struck in early 2020. The average price of a  single-family home rose 11.6 percent in September to $414,776 – well below the record high of $438,384 reached in May 2022. The median price jumped 14.7 percent to $343,950, which is also below the highest median of all time, $354,100, reached in June 2022. The average price for a  single-family home in Houston first broke the $400,000 mark in March of this year. The median price has held above $300,000 since May of 2021.

September Monthly Market Comparison

Home buying activity slowed for a sixth straight month in September,  with mortgage interest rates exceeding six percent for the first time in years, as well as a continued lack of housing inventory below $400,000.  Year-over-year single-family home sales fell 17.0 percent. On a  year-to-date basis, sales are trailing last year’s record pace by 5.1  percent.

Market indicators provided mixed readings in September. In addition to the drop in single-family home sales, total property sales and total dollar volume declined and pending sales fell 15.5 percent. 

Active listings (the total number of available properties) jumped 36.3 percent.

Months of inventory grew again in September, reaching a 2.7-months  supply. That is the highest level since July of 2020 when it was 2.9  months. Housing inventory nationally stands at a 3.2-months supply,  according to the latest report from the National Association of Realtors  (NAR). A 6.0-months supply is generally considered make up a “balanced  market,” in which neither the buyer nor the seller has an advantage.

Single-Family Homes Update

Single-family home sales fell 17.0 percent in August with 7,664 units  sold across the Greater Houston area compared to 9,235 a year earlier.  In September, the median price climbed 14.7 percent to $343,950 while  the average price rose 11.6 percent to $414,776.

For a pre-pandemic perspective, September sales are up 8.7 percent  compared to three ars ago, in September 2019, when a total of 7,050  single-family homes sold. The median price then was 40.6 percent lower,  at $244,679, and the average price, at $299,600, was 38.4 percent lower.  Sales are 10.2 percent above where they were five years ago, in  September 2017, when volume totaled 6,953. Back then, the median price  was $232,000 and the average price was $290,683 – reflecting pricing  jumps of 48.3 percent and 42.7 percent, respectively.

Days on Market, or the actual time it took to sell a home, grew from  29 to 37 days. Inventory registered a 2.7-months supply compared to 1.7  months a year earlier. That is the greatest supply of homes on the  market since July 2020. The current national inventory stands at 3.2  months, as reported by NAR.

   Houston Real Estate Highlights in October 

• Single-family home sales fell 22.8 percent year-over-year, the seventh  consecutive decline of 2022 as the market returns to pre-pandemic  levels;
• All housing segments experienced negative sales in October. The  smallest decline in sales Days on Market (DOM) for single-family homes  grew from 32 to 43 days;
• Total property sales were down 22.7 percent with 8,223 units sold;
• Total dollar volume declined 18.4 percent to a little over $3 billion;
• The single-family average price rose 7.2 percent to $403,712; 
• The single-family median price increased 8.4 percent to $330,500;
• Single-family home months of inventory registered a 2.8-months supply,  up from 1.8 months a year earlier. That is the greatest inventory level  since July of 2020;
• Townhome/condominium sales experienced their fifth consecutive monthly  decline, falling 19.4 percent, with the average price up 9.3 percent to  $269,936 and the median price up 3.9 percent to $226,500.

 Houston Real Estate Highlights in August

• Single-family home sales fell 16.9 percent year-over-year, the fifth decline of 2022 as the market continues toward a more normalized, pre-pandemic pace;
• Days on Market (DOM) for single-family homes ticked up from 27 to 31 days;
• The ‘Close to Original List Price Ratio’ for single-family homes has now remained below 100 percent for two consecutive months, meaning fewer buyers paid above list price for homes on the market;
• Total property sales were down 15.8 percent with 10,157 units sold;
• Total dollar volume was off 9.4 percent at $3.9 billion;
• The single-family average price rose 8.7 percent to $411,671; 
• The single-family median price increased 10.8 percent to $341,950;
• Single-family home months of inventory registered a 2.5-months supply, up from 1.7 months a year earlier. That is the greatest inventory level since August of 2020;
• Townhome/condominium sales experienced their third consecutive monthly decline, falling 14.9 percent, with the average price up 7.2 percent to $254,383 and the median price up 8.1 percent to $217,000.

The Houston housing market continued easing its way to pre-pandemic levels with an August that marked the fifth consecutive month of declining sales and rising inventory. However, a surge in single-family leases demonstrates that consumers didn’t just suspend purchases due to rising prices and interest rates, but they pivoted to the rental market. These factors have enabled housing inventory to grow to its highest level in two years. 

According to the Houston Association of Realtors’ (HAR) August 2022 Market Update, single-family home sales fell 16.9 percent, with 8,241 units sold compared to 9,918 in August 2021. That is the lowest one-month sales volume since February 2022. On a year-to-date basis, the market now trails 2021’s record-setting volume by 3.7 percent. 

As in July, all housing segments experienced negative sales in August except the $500,000 to $1 million segment, which rose 10.0 percent. The smallest decline in sales was recorded among homes priced between $250,000 and $500,000, which fell 10.6 percent. With few homes available for sale at or below $250,000, many consumers have postponed purchase plans or shifted their focus to rental properties. [HAR’s Monthly Rental Home Update for August will be released next Wednesday, September 21]. 

“We are easing our way back to the housing market that existed prior to the pandemic,” said HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene. “For the past two years, Houston housing has been like a runaway train, and what we’ve been seeing most recently is an engineer, finally at the throttle, applying the brakes so the train can pull safely into the next station. It’s important to note that transactions are still happening, just not at a whirlwind pace or record pricing levels, and that is perfectly healthy.”

The average price of a single-family home rose 8.7 percent in August to $411,671 –below the record high of $438,591 reached in May 2022. The median price jumped 10.8 percent to $341,950, which is also below the highest median of all time, $354,440, reached in June 2022. The average price for a single-family home in Houston first shattered the $400,000 mark in March of this year. The median price has held above $300,000 since May of 2021.

After surpassing the 100-percent mark from April through June of this year, the ‘Close to Original List Price Ratio’ for single-family homes has remained below 100 percent for the past two months, meaning that fewer buyers are paying above list price for homes on the market. 

August Monthly Market Comparison

Homebuyers continued to take a break from the market in August amid the pressures of record home prices and rising interest rates, keeping home sales in negative territory for a fifth straight month. Year-over-year single-family home sales fell 16.9 percent. On a year-to-date basis, sales are lagging just 3.7 percent behind last year’s record pace.

Market indicators yielded mixed readings in August. In addition to the drop in single-family home sales, total property sales and total dollar volume of sales experienced declines and pending sales slid 11.0 percent. Active listings (the total number of available properties) jumped 31.1 percent.

Months of inventory grew again in August, reaching a 2.5-months supply. That is the highest level since August of 2020 when it was 2.6 months. Housing inventory nationally stands at a 3.3-months supply, according to the latest report from the National Association of Realtors (NAR). A 6.0-months supply is generally considered make up a “balanced market,” in which neither the buyer nor the seller has an advantage.

Single-Family Homes Update

Single-family home sales fell 16.9 percent in August with 8,241 units sold across the Greater Houston area compared to 9,918 a year earlier. In August, the median price climbed 10.8 percent to $341,950 while the average price rose 8.7 percent to $411,671. 

For a pre-pandemic perspective, August sales are down 5.0 percent compared to three years ago, in August 2019, when a total of 8,673 single-family homes sold. The median price then was 36.8 percent lower, at $249,975, and the average price, at $310,139, was 32.7 percent lower. However, sales are 35.3 percent above where they were five years ago, in August 2017, when volume totaled 6,090. Back then, the median price was $230,000 and the average price was $294,963 – reflecting pricing jumps of 48.6 percent and 39.6 percent, respectively. It is worth noting that the 2017 figures were affected by Hurricane Harvey.

Days on Market, or the actual time it took to sell a home, grew slightly, from 27 to 31 days. Inventory registered a 2.5-months supply compared to 1.7 months a year earlier. That is the greatest supply of homes on the market since August of 2020. The current national inventory stands at 3.3 months, as reported by NAR.

The frenetic pace of home sales that dominated the Houston housing market throughout most of the pandemic continues to slow its roll. Some consumers, facing record pricing, rising interest rates and limited inventory, have moved to the sidelines or opted to rent. Home sales experienced their fourth consecutive monthly decline in July, while new listings buoyed inventory to the highest level in two years.

• The ‘Close to Original List Price Ratio’ for single-family homes fell below 100 percent for the first time since April 2022, meaning that most buyers did not pay above list price for homes on the market;

According to the Houston Association of Realtors’ (HAR) July 2022 Market Update, single-family home sales dropped 17.1 percent, with 8,370 units sold compared to 10,102 in July 2021. That is the lowest one-month sales volume since January 2022. On a year-to-date basis, the market is now trailing 2021’s record-setting pace by 1.3 percent. 

The only housing segment that did not experience negative sales in July was the $500,000 to $1 million segment, which leapt 40.6 percent. The smallest decline in sales was registered among homes priced between $250,000 and $500,000, which fell 9.2 percent. With a scant assortment of homes priced below $250,000, consumers have had to weigh more expensive property options, shift their focus to rental homes or postpone buying or renting plans altogether. 

[HAR’s Monthly Rental Home Update for July will be released next Wednesday, August 17].

“The scorching pace of Houston housing throughout most of the pandemic was completely unsustainable, so the cooling that we have experienced over the past four months was expected and is all part of a market normalization,” said HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene. “As long as we continue to see inventory grow and prices level off, I believe homebuyers will move off the sidelines and back into the marketplace. An easing of interest rates would help as well, particularly for first-time buyers who desperately want to seize the American Dream of homeownership.” 

The average price of a single-family home rose 9.9 percent in July to $426,494 – well below the record high of $438,844 reached in May 2022. The median price jumped 12.7 percent to $348,740, which is well below highest median of all time, $354,613, reached last month. The average price for a single-family home in Houston first broke the $400,000 mark in March of this year. The median price has remained above $300,000 since May of 2021.

“The Houston housing market is beginning to show signs of easing, which was to be expected with summer behind us, schools back in session, and inventory levels still exceptionally low, albeit improving,” said HAR Chairman Richard Miranda with Keller Williams Platinum. “We are also hearing anecdotally that there aren’t quite as many competitive bids on property listings as we observed earlier this year, which drove prices into record territory in June.”

After surpassing the 100-percent mark for three straight months, the ‘Close to Original List Price Ratio’ for single-family homes fell to 98.9 percent in July. A reading above 100 percent signals that a majority of buyers paid above list price for homes on the market. 

July Monthly Market Comparison

With prospective homebuyers facing record prices, rising interest rates and a limited supply of homes on the market on top of general consumer inflation, home sales were down again in July. Single-family home sales fell 17.1 percent. On a year-to-date basis, sales are 1.3 percent behind last year’s record pace.

The housing measurements for July generated mixed readings. In addition to the drop in single-family home sales, total property sales experienced declines and pending sales slid 12.5 percent. Active listings (the total number of available properties) jumped 30.0 percent but total dollar volume fell 9.0 percent to $4.1 billion.

Months of inventory grew again in July, reaching a 2.5-months supply. That is the highest level since August of 2020 when it was 2.6 months. Housing inventory nationally stands at a 3.0-months supply, according to the latest report from the National Association of Realtors (NAR). A 6.0-months supply is generally considered a “balanced market,” in which neither the buyer nor the seller has the upper hand.

Days on Market, or the actual time it took to sell a home, held steady year-over-year at 26 days. Inventory registered a 2.5-months supply compared to 1.7 months a year earlier. That is the greatest supply of homes on the market since August of 2020. The current national inventory stands at 3.0 months, as reported by NAR.

Lack of inventory leaves consumers few homes to buy (thegiffordgroup.net) 

 AS HOUSTON HEATS UP, THE HOUSING MARKET COOLS
 

As summer temperatures soared to record highs in June, Houston’s sizzling housing market began a long-anticipated cooldown. Home sales experienced their first significant decline of 2022, reflecting a perfect storm that had been brewing for months: the combination of diminished inventory, record-high prices and, more recently, rising interest rates on top of a climate of growing inflation. However, the sales slowdown and a steady supply of new listings helped boost inventory to a 2.0-months supply – the most plentiful supply of homes since November 2020.  According to the Houston Association of Realtors’ (HAR) June 2022 Market Update, single-family home sales fell 8.6 percent, marking the third consecutive monthly year-over-year decline with 9,728 units sold compared to 10,649 in June of 2021. On a year-to-date basis, however, the market is still running 1.7 percent ahead of 2021’s record-setting volume.  

Once again, the $500,000 to $1 million housing segment drew the highest sales volume of the month, registering a 22.0 percent year-over-year sales volume gain. That was followed by homes priced from $250,000 to $500,000, which rose 2.4 percent. The luxury segment – consisting of homes priced at $1 million and above – saw its first decline in two years, slipping 2.3 percent.  A continued lack of homes priced below $250,000 left consumers no choice but to weigh more expensive property options, shift their focus to rental homes or postpone any plans to buy or rent.

 [HAR’s Monthly Rental Home Update for June will be released next Wednesday, July 20].

 Some relief came after the June home sales numbers were tallied. During the first week of July, mortgage rates finally reversed course, with Freddie Mac reporting that the average interest rate on a 30-year fixed-rate loan fell from 5.7 to 5.3 percent – the biggest decline since 2008.  

However, an average rate of 5.3 percent is well above the average rate of 2.67% on 30-year fixed-rate loans that prevailed in December 2020. It is still higher than rates have been over the course of most of the past decade.

 The average price of a single-family home rose 11.0 percent in June to $436,425 – slightly below last month’s record high – while the median price jumped 13.2 percent to $355,000, which is the highest median of all time. The average price for a single-family home in Houston first broke the $400,000 mark in March of this year. 

For the third consecutive month, the ‘Close to Original List Price Ratio’ for single-family homes surpassed the 100 percent mark, rising to 100.1 percent in June. That means that a majority of buyers paid above list price for homes on the market. The ratio first broke the 100 percent mark last summer, as high-dollar buying became prevalent throughout the market. The ratio was up 100.9 percent last month – the highest ever. 

 June Monthly Market Comparison With would-be homebuyers facing record prices, rising interest rates and a limited supply of homes on the market amid growing inflation, home sales had only one direction to go: down. Single-family home sales fell 8.6 percent. However, on a year-to-date basis, sales are still 1.7 percent ahead of last year’s record pace.  The monthly housing measurements for June yielded mixed readings. In addition to the drop in single-family home sales, total property sales experienced declines and pending sales slid 7.7 percent. Active listings (the total number of available properties) jumped 27.4 percent and total dollar volume for June eked out a 1.6 percent gain, coming in at about $4.9 billion. Buoyed by an 8.3 percent increase in new listings, months of inventory reached a 2.0-months supply, the highest level since November 2020 when it was 2.1 months. Housing inventory nationally stands at a 2.6-months supply, according to the latest report from the National Association of Realtors (NAR). A 6.0-months supply is generally considered a “balanced market,” in which neither the buyer nor the seller has an advantage. 

Single-Family Homes Update Single-family home sales fell 8.6 percent in June with 9,728 units sold across the Greater Houston area compared to 10,649 a year earlier. Strong sales among higher-end homes pushed pricing up again. The median price climbed 13.2 percent to a record-setting $355,000 while the average price rose 11.0 percent to $436,425 – the second highest of all time.  

Days on Market, or the actual time it took to sell a home, dropped slightly from 30 to 28 days. Inventory registered a 2.0-months supply compared to 1.4 months a year earlier. That is the greatest supply of homes since November 2020. The current national inventory stands at 2.6 months, as reported by NAR. 

HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 7,937 in June, down 11.6 percent from the same month last year. The average sales price jumped 11.1 percent to a record-setting $438,099 (the second highest average price of all time) while the median sales price climbed 12.9 percent to $350,000, tying the record high median price reached last month.  

 Houston Real Estate Highlights in June

• Single-family home sales fell 8.6 year-over-year, their third and biggest decline of 2022 as the market begins a long-anticipated cooldown;
• Days on Market (DOM) for single-family homes dropped from 30 to 28;
• The ‘Close to Original List Price Ratio’ for single-family homes reached 100.1 percent, marking the third straight month that buyers paid above list price for homes on the market;
• Total property sales were down 9.1 percent with 11,921 units sold;
• Total dollar volume increased 1.6 percent to about $4.9 billion;
• The single-family average price rose 11.0 percent to $436,425, the second highest of all time, and the fourth time that pricing has exceeded $400,000; 
• The single-family median price increased 13.2 percent to $355,000 – a record;
• Single-family home months of inventory registered a 2.0-months supply, up from 1.4 months a year earlier. That is the greatest supply since November 2020;
• Townhome/condominium sales experienced the first decline in nearly two years, falling 15.3 percent, with the average price up 4.7 percent to $259,557 and the median price up 2.7 percent to $220,000.

Homes sell briskly despite skyrocketing prices and rising interest rates, and inventory reaches the highest level of 2022   

Home sales maintained a healthy pace in May even as prices climbed to new record highs and mortgage interest rates edged further upward. Individual consumers and investment companies kept up demand, snapping up properties almost as quickly as they were listed. By the time the final closing of the month was tallied, volume of single-family home sales was down slightly under one percent compared to last year’s record pace. 

And thanks, in part, to an increase of new listings, housing inventory reached its highest level of 2022.   

 According to the Houston Association of Realtors’ (HAR) May 2022 Market Update, single-family home sales fell 0.9 percent, marking the second consecutive monthly year-over-year decline with 9,627 units sold compared to 9,714 in May of 2021. On a year-to-date basis, however, the market is running 4.4 percent ahead of 2021’s record-setting volume.    

The $500,000 to $1 million housing segment was the “hot” performer of the month, registering a 38.3 percent year-over-year sales volume gain. That was followed by the luxury segment – made up of homes priced at $1 million and above – which jumped 30.2 percent. The $250,000 to $500,000 housing segment landed third place with a 10.7 percent increase.  

 The continued lack of below-$250,000 housing inventory has driven consumers toward more expensive properties as well as into for-lease homes [HAR’s first Monthly Rental Home Update for May will be released next Wednesday, June 15]. Mortgage rates are still on the rise with the average rate on a 30-year fixed rate mortgage up to 6.059 percent as of June 7.     

 The march into record territory continued in May, with buyers pushing Houston home prices to new highs. The average price of a single-family home rose 14.3 percent to $440,670 while the median price jumped 16.0 percent to $351,000.  

“Conditions appear to be calming a bit across the Houston housing market, so we are not seeing the frenetic pace of buying we did a couple of months ago with dozens of competing offers on new listings,” noted HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene. “New listings increased nine percent in May, helping boost inventory to its highest level of the year, so hopefully we can begin to see signs of normalcy in terms of supply, demand and pricing in the months ahead.”  

  For the second month in a row, the ‘Close to Original List Price Ratio’ for single-family homes broke the 100 percent mark, rising 100.9 percent — the highest percentage ever. That means that a majority of buyers paid above list price for homes on the market. The ratio first broke the 100 percent mark last summer, as high dollar buying began to permeate the market. It was up 100.6 percent last month.  

 May Monthly Market Comparison   

Between home prices reaching historic highs and mortgage interest rates on the rise, the Houston real estate market eased up a bit in May as some consumers put off purchases or turned to rentals as an alternative. Single-family home sales declined a fractional 0.9 percent, however on a year-to-date basis, sales are 4.4 percent ahead of last year’s record pace.    Of all the monthly housing metrics for May, only single-family home sales and total property sales experienced declines. Active listings (the total number of available properties) jumped 14.9 percent and total dollar volume for May rose 12.0 percent to $4.9 billion.    

Helped by a 9.0 percent increase in new listings, months of inventory reached a 1.6-months supply, the highest level since October 2021 when it was 1.7 months. Housing inventory nationally stands at a 2.2-months supply, according to the latest report from the National Association of Realtors (NAR). A 6.0-months supply is traditionally considered a “balanced market,” in which neither the buyer nor the seller has an advantage.     

According to the Houston Association of REALTORS’ May 2022 Rental Market Update, single-family home rentals jumped 24.8 percent year-over-year, with the average rent up 11.0 percent to an all-time high of $2,239. A total of 3,407 leases were signed versus 2,731 in May 2021. New listings of single-family rentals shot up 28.6 percent, adding to a robust supply of units for consumers who may have grown weary of the aggressive sales market. Days on Market, or the actual time it took to lease a home, edged up from 22 days to 24. 

The Houston real estate market had a robust performance in April, however, for the first time in 2022, sales volume failed to best last year’s historic pace as record high prices, rising interest rates and limited inventory weighed on homebuyers during what is traditionally the busy spring homebuying season.   

Record pricing again! interest rates Rise and low inventory still hard on homebuyers    

On a year-to-date basis, however, the market has kept the momentum of what has so far been a strong year – running 7.4 percent ahead of 2021’s record-setting volume.  Would-be homebuyers who have instead opted to rent drove single-family home leases up 17.2 percent but pulled back a bit from townhome and condominium leases, which fell 3.0 percent.   

The $250,000 to $500,000 housing segment came in third place, climbing 13.5 percent. A continued lack of available homes priced below $250,000 has left consumers no choice but to shop for more expensive homes amid rising interest rates or to lease.  

Mortgage rates are surging at the fastest pace in 40 years, driven largely by the Federal Reserve’s more aggressive efforts to curb inflation.   

After reaching record prices in March, buyers pushed Houston home prices to even higher levels in April.   

The average price of a single-family home rose 14.9 percent to $426,061 while the median price jumped 16.6 percent to $343,990.        

Pricing for a single-family home in Houston surpassed $400,000 for the first time in March of this year, and now has blown passed the $425K mark 

Consumers have become increasingly weary of the buying frenzy, and many are delaying purchases due to rising prices and interest rates. Unfortunately, we do not expect conditions to improve anytime soon.  

The ‘Close to Original List Price Ratio’ for single-family homes reached 100.6 percent in April — the highest percentage ever. That means that a majority of buyers paid above list price for homes on the market. The ratio first broke the 100 percent mark last June, and did so again last July, as high dollar buying began to permeate the market.   

Now is a great time to sell if you have been thinking about it as the median hits all-time highs! Download our seller's guide.   

How much of your income should you spend on housing?  

April Monthly Market Comparison  

Single-family home sales were statistically unchanged year-over-year, however on a year-to-date basis, they are 7.4 percent ahead of last year’s record pace.   

With the exception of single-family home sales and pending sales, the monthly market metrics showed positive readings. Active listings (the total number of available properties) rose 5.2 percent.        

Months of inventory edged up to a 1.4-months' supply, which is just slightly above the lowest level of all time. (1.3 last month) Over the past year, its highest level was a 1.7-months' supply from July through October of 2021.  

Housing inventory nationally stands at a 2.0-months' supply, according to the latest report from the National Association of Realtors (NAR). A 6.0-months' supply is traditionally considered a “balanced market,” in which neither the buyer nor the seller has the upper hand.  Single-Family Homes Update Single-family home sales were statistically flat in April with 9,079 units sold across the Greater Houston area compared to 9,100 a year earlier.

Strong sales volume among higher-end homes pushed pricing to historic highs. The median price climbed 16.6 percent to $343,990 while the average price rose 14.9 percent to $426,061.    May 2022 Houston market update May 2022 Houston market update  

April Monthly Market Houston Comparison  

The first time was a month earlier, in March 2022. Days on Market, or the actual time it took to sell a home, dropped from 40 to 33 days. 

 HAR also breaks out sales figures for existing single-family homes.  

Existing home sales totaled 7,296 in April. 

That was up 0.8 percent from the same month last year. The average sales price rose 15.3 percent to a record high $429,620 while the median sales price climbed 15.8 percent to $337,500, also an historic high.  

Wondering how much mortgage payment that would be?  

Lease Property Update 

Houston’s lease market registered a mixed performance in April. Single-family rental homes benefited strongly from consumers that postponed homebuying plans, rising 17.2 percent year-over-year. Leases of townhomes and condominiums, however, fell 3.0 percent. 

 The average single-family rent rose 10.2 percent to $2,164 while the average rent for townhomes and condominiums increased 8.4 percent to $1,831. 

  Remember it is not unusual for prices to go up and is one of the reasons why homeowners have a higher net worth than renters 40 times higher in Fact.  

Undaunted by rising mortgage interest rates and a record low supply of homes across Greater Houston, consumers kept the local real estate market in positive territory in March. While new listings are entering the market each week, buyer demand has consistently outpaced that supply, and multiple offers on homes continues to push pricing into record territory, solidly positioning Houston as a sellers’ market.  

 According to the Houston Association of Realtors’ (HAR) March 2022 Market Update, single-family home sales increased 4.1 percent with 9,693 units sold compared to 9,309 in March of 2021. On a year-to-date basis, the market is running 10.8 percent ahead of last year’s record pace. The rental market is also strong as consumers that find themselves unable to purchase a home for the time being are instead opting to lease.   

 A continued shortage of available homes below $250,000 has left consumers no choice but to shop for higher-priced homes or to lease. It remains to be seen if mortgage rates, which topped 5 percent last week for the first time in years, will slow the pace of homebuying in April.    

Prices Up! After reaching record prices in February, buyers pushed pricing to even higher levels in March. The average price of a single-family home rose 11.4 percent to $410,923 while the median price jumped 15.5 percent to $335,000. 

Lease Property Update   Houston’s lease market enjoyed a positive March overall, still benefitting from consumers that have postponed homebuying plans until the market hopefully yields a broader and more affordable supply of housing. 

Single-family rental homes rose 18.3 percent year-over-year. 

Leases of townhomes and condominiums were unchanged. 

The average single-family rent rose 6.7 percent to $2,075 while the average rent for townhomes and condominiums increased 7.6 percent to $1,852.    

March Monthly Market Comparison  

 Months of inventory was flat at a 1.3-months' supply, which is just slightly above the lowest level of all time. 

Over the past year, its highest level reached was a 1.8-months supply in August 2021. Housing inventory nationally stands at a 1.7-months supply, according to the latest report from the National Association of Realtors (NAR). 

A 6.0-months supply is traditionally considered to represent a “balanced market,” in which neither the buyer nor the seller has an advantage.      

Single-Family Homes Update   

Single-family home sales increased 4.1 percent in March with 9,693 units sold throughout the greater Houston area compared to 9,309 a year earlier. 

Strong sales volume among higher-end homes pushed pricing up to historic highs. 

The median price climbed 15.5 percent to $335,000 while the average price rose 11.4 percent to $410,923. These prices are not only new record highs, but the average price represents the first time that single-family pricing has exceeded $400,000.

Days on Market, or the actual time it took to sell a home, fell from 46 to 38 days. Inventory registered a 1.3-months' supply compared to 1.3 months a year earlier. That is only slightly above Houston’s lowest inventory level of all time – 1.2 months, which was recorded in February 2022. The current national inventory stands at 1.7 months, as reported by NAR.