Houston MLS Report for November 2016

RFH Logo
Houston MLS Report for October 2016
November 12, 2016
Houston Real Estate MLS Report for February 2017
March 11, 2017
Show all

Houston MLS Report for November 2016

RFH Logo

 

HOUSTON HOME SALES SURGE IN NOVEMBER

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.

November Monthly Market Comparison

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).

CATEGORIES NOVEMBER 2015 NOVEMBER 2016 CHANGE
Total property sales 5,676 6,890 21.4%
Total dollar volume $1,420,028,031 $1,827,990,565 28.7%
Total active listings 33,298 36,151 8.6%
Single-family home sales 4,651 5,706 22.7%
Single-family average sales price $262,811 $281,671 7.2%
Single-family median sales price $205,000 $222,000 8.3%
Single-family months inventory* 3.4 3.6 0.2 mos.
Single-family pending sales 5,019 5,799 15.5%

* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

Single-Family Homes Update

Single Family

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:

  • $1 – $79,999: decreased 19.8 percent
  • $80,000 – $149,999: decreased 7.2 percent
  • $150,000 – $249,999: increased 29.1 percent
  • $250,000 – $499,999: increased 47.4 percent
  • $500,000 and above: increased 32.5 percent

Single Family Average Home Price

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.

Townhouse/Condominium Update

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.

Townhouse/Condominium Sales

Lease Property Update

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.

Houston Real Estate Highlights in November

  • Single-family home sales soared 22.7 percent with 5,706 units sold—representing the greatest year-over-year sales volume increase for a single month since July 2013;
  • On a year-to-date basis, single-family home sales were up 2.7 percent;
  • Total property sales jumped 21.4 percent to 6,890 units;
  • Total dollar volume increased 28.7 percent to $1.8 billion;
  • At $222,000, the single-family home median price rose 8.3 percent to a November high;
  • The single-family home average price increased 7.2 percent to $281,671, which was also the highest level for a November;
  • Single-family homes months of inventory climbed to a 3.6-months supply;
  • Townhome/condominium sales increased 14.6 percent, with the average price up 12.6 percent to $208,388 and the median price up 22.0 percent to $163,000;
  • Leases of single-family homes rose 3.2 percent with average rent up slightly to $1,724;
  • Leases of townhomes/condominiums fell 2.4 percent with average rent down 2.6 percent to $1,498.

The computerized Multiple Listing Service of the Houston Association of REALTORS® includes residential properties and new homes listed by 36,000 REALTORS® throughout Harris, Fort Bend and Montgomery counties, as well as parts of Brazoria, Galveston, Waller and Wharton counties. Residential home sales statistics as well as listing information for more than 50,000 properties may be found on the Internet at http://www.har.com.

The information published and disseminated to the HAR Multiple Listing Services is communicated verbatim, without change by Multiple Listing Services, as filed by MLS participants.

The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported since November 1998 includes a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures. (Single-family detached homes were broken out separately in monthly figures beginning February 1988.)

Founded in 1918, the Houston Association of REALTORS® (HAR) is a 36,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest individual dues-paying membership trade association in Houston as well as the second largest local association/board of REALTORS® in the United States.

For more information about the Katy area or any assistance with your real estate needs in Katy or West Houston contact Steve Reddell. He is a licensed real estate agent you can trust with REMAX Cinco Ranch. You can contact him directly at 281-994-5173. You can also visit him on the web at Reddell Family Homes.