Stephen Reddell's Katy Texas Blog

Home prices and sales volume reach historic highs; housing inventory shrinks further

HOUSTON — (June 18, 2013) — Just when you thought the pace of Houston home sales could move no faster nor home prices climb any higher, they do. May marked the 24th consecutive month—two straight years—of positive sales, and brought a continued flurry of home buying that accounted for the largest one-month sales volume of all time and record-high pricing. This buying frenzy caused a further shrinkage in the supply of homes on the market.

According to the latest monthly report prepared by the Houston Association of REALTORS® (HAR), home sales jumped 28.0 percent compared to last May, with contracts closing on 7,794 single-family homes. The last time the market approached that volume in a single month was in June 2006 when 7,688 transactions closed. Housing inventory, which reached a 13-year low of 3.6 months during the first two months of the year, dipping to 3.5 months in March and 3.4 months in April, stood at 3.3 months at the end of May.

The median price of a single-family home—the figure at which half the homes sold for more and half for less—rose 11.9 percent to $188,000. The average price increased 9.0 percent year-over-year to $256,790. Both represent the highest prices of all time.

All housing segments experienced gains except for those priced under $80,000. Homes selling between $150,000 and $500,000 registered the greatest increase in sales volume.
“The Houston real estate market has held to positive territory for two years running and you’d be hard-pressed to find a market anywhere in the U.S. as vibrant as ours,” said HAR Chairman Danny Frank with Prudential Anderson Properties. “We continue to see multiple offers on homes, in many cases before the ink has even dried on the listing agreements. There are also many cash offers. We need to carefully watch pricing, however. A disproportionate appreciation in home prices could suggest a bubble, and Houston is very fortunate to have avoided that so far.”

Houston’s relentless surge in home sales continues to be fueled by further job creation, with the Texas Workforce Commission reporting the addition of more than 111,000 jobs over the past 12 months. Continued low interest rates have also made conditions more appealing for home buying, although rates have begun creeping up in recent weeks.

Foreclosure property sales reported in the HAR Multiple Listing Service (MLS) declined 33.7 percent compared to May 2012. Foreclosures currently make up 9.4 percent of all property sales, down from 10.4 percent one month earlier and 19.7 percent at the beginning of the year. The median price of foreclosures rose 3.8 percent to $85,000.
May sales of all property types in Houston totaled 9,245, a 28.0 percent increase over the same month last year. That marked the largest one-month sales volume since June 2006. Total dollar volume for properties sold jumped 38.1 percent to $2.2 billion versus $1.6 billion a year earlier.

May Monthly Market Comparison

May delivered more positive results to the Houston’s real estate market when comparing all sales categories to May 2012. On a year-over-year basis, total property sales, total dollar volume and average and median pricing were all on the rise.

Month-end pending sales totaled 5,115, a 14.3 percent gain over last year and a strong indicator of another sales increase when the June figures are tallied. Active listings, or the number of available properties, at the end of May declined 23.8 percent from May 2012 to 32,214.

After holding at 3.6 months in January and February and slipping slightly in March to 3.5 months, housing inventory declined from April’s 3.4-month reading to 3.3 months in May. Those levels are comparable to figures last seen here in the late 1990s. For perspective, the inventory of single-family homes across the United States stands at 5.2 months, according to the latest report from the National Association of REALTORS® (NAR).

CATEGORIES	MAY 2012	MAY 2013	CHANGE
Total property sales	7,220	9,245	28.0%
Total dollar volume	$1,629,544,913	$2,249,874,127	38.1%
Total active listings	42,280	32,214	-23.8%
Total pending sales	4,476	5,115	14.3%
Single-family home sales	6,088	7,794	28.0%
Single-family average sales price	$235,509	$256,790	9.0%
Single-family median sales price	$168,000	$180,000	11.9%
Months inventory*	5.5	3.3	-40.6%

* 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

HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In May 2013, existing home sales totaled 6,642, a 29.9 percent leap from the same month last year. The average sales price rose 10.5 percent year-over-year to $246,607 while the median sales price jumped 11.7 percent to $174,320.

May sales of townhouses and condominiums increased 15.8 percent from one year earlier. A total of 653 units sold last month compared to 564 properties in May 2012. The average price edged up 1.2 percent to $188,593 while the median price dipped 0.5 percent to $139,000. Months inventory was 3.4 months versus the 6.4 months level recorded in May 2012.

Houston’s lease property market remained strong in May. Rentals of single-family homes increased 12.2 percent compared to May 2012 and year-over-year townhouse/condominium rentals rose 15.3 percent. At $1,651, the average rent for single-family lease homes reached the highest price since last August. The average rent for townhouses/condominiums climbed to its highest price ever at $1,426.

HOUSTON’S HOMEBUYING BONANZA SHOWS NO LET-UP IN APRIL

The law of supply at demand is fully in play as a dwindling supply of homes sends prices to record highs; dollar volume jumps 46 percent

HOUSTON — (May 21, 2013) — The great Houston home-grab continued in April as local property sales tore through the month at full-throttle. Buyer demand and an ever-shrinking supply drove home prices to the highest levels of all time.

According to the latest monthly report prepared by the Houston Association of REALTORS® (HAR), home sales surged 27.2 percent compared to last April, accounting for the 23rd consecutive month of positive sales. Housing inventory, which reached a 13-year low of 3.6 months during the first two months of the year and dipped to 3.5 months in March, dwindled even further in April to 3.4 months.

This pattern illustrates a classic tale of supply and demand, as the median price of a single-family home—the figure at which half the homes sold for more and half for less—shot up 14.5 percent to $184,900. The average price jumped 14.0 percent year-over-year to $253,907. Both represent record high prices for the Bayou City.

Contracts closed on 6,482 single-family homes. That is the largest one-month sales volume recorded since August 2007, right before the recession took hold. All housing segments experienced gains except for those priced under $80,000. Homes selling between $80,000 and $250,000 registered the greatest increase in sales volume.

“The Houston housing market shows absolutely no sign of letting up,” said HAR Chairman Danny Frank with Prudential Anderson Properties. “More homes listed for sale and a pick-up in new home construction are necessary to meet the growing demand of buyers. If anyone is considering selling their home, this is the time to consult a REALTOR® and start the process.”

The record pace of home sales is the direct result of robust economic conditions led by further growth in hiring, with the Texas Workforce Commission reporting more than 111,000 jobs created in Houston over the past year, as well as continued low interest rates.

Foreclosure property sales reported in the HAR Multiple Listing Service (MLS) declined 30.5 percent compared to April 2012. Foreclosures currently make up 10.4 percent of all property sales, down from 12.3 percent one month earlier and 19.6 percent at the beginning of the year. The median price of foreclosures climbed 4.5 percent to $83,500.

April sales of all property types in Houston totaled 7,883, a 28.8 percent increase over the same month last year. Total dollar volume for properties sold rocketed 45.9 percent to $1.9 billion versus $1.3 billion a year earlier.

April brought positive results across the board for the Houston’s real estate market when all sales categories are compared to April 2012. On a year-over-year basis, total property sales, total dollar volume and average and median pricing all rose.

Month-end pending sales totaled 4,999. That is up 23.3 percent from last year and signals the likelihood of more positive sales news when the May figures are tabulated. Active listings, or the number of available properties, at the end of April declined 23.6 percent from April 2012 to 32,498.

After holding at 3.6 months in January and February before slipping slightly in March to 3.5 months, housing inventory declined a bit further in April to 3.4 months. Those levels are comparable to figures last seen here in 1999. The inventory of single-family homes across the United States stands at 4.7 months, according to the latest report from the National Association of REALTORS® (NAR).

CATEGORIES	APRIL 2012	APRIL 2013	CHANGE
Total property sales	6,118	7,883	28.8%
Total dollar volume	$1,303,104,290	$1,901,444,255	45.9%
Total active listings	42,534	32,498	-23.6%
Total pending sales	4,055	4,999	23.3%
Single-family home sales	5,094	6,482	27.2%
Single-family average sales price	$222,703	$253,907	14.0%
Single-family median sales price	$161,500	$184,900	14.5%
Months inventory*	5.7	3.4	-37.7%

* 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

Townhouse/Condominium Update

Lease Property Update

Houston Real Estate Milestones in April

• Single-family home sales increased 27.2 percent year-over-year, accounting for the market’s 23rd consecutive monthly increase and the largest one-month sales volume since August 2007;
• Total property sales rose 28.8 percent compared to one year earlier and also accounted for the largest one-month sales volume since August 2007;
• Total dollar volume surged 45.9 percent, increasing from $1.3 billion to $1.9 billion on a year-over-year basis;
• At $184,900, the single-family home median price reached an historic high for Houston;
• At $253,907, the single-family home average price also reached the all-time highest level;
• 3.4 months inventory of single-family homes is the lowest level since 1999 and compares to the national average of 4.7 months;
• Sales of townhouses/condominiums shot up 31.0 percent year-over-year.

The computerized Multiple Listing Service of the Houston Association of REALTORS® includes residential properties and new homes listed by 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 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.

 

Aggressive home buying shrinks inventory further while driving the median price to a record high

HOUSTON — (April 16, 2013) — It’s hard to tell that the spring home buying season has begun because real estate transactions throughout Greater Houston never slowed during the traditionally quieter winter months. The addition of nearly 119,000 jobs over the past 12 months and the resulting need for housing, combined with continued low interest rates, helped make March Houston’s 22nd consecutive month of positive home sales.

According to the latest monthly data prepared by the Houston Association of REALTORS® (HAR), home sales jumped 17.0 percent compared to last March. Housing inventory, which had been at a 13-year low of 3.6 months during the first two months of the year, shrank slightly in March to 3.5 months.

The lower supply of homes and added demand sent prices higher. The median price of a single-family home—the figure at which half the homes sold for more and half for less—rose 6.5 percent to $172,000, an all-time record high for Houston. The average price rose 4.6 percent year-over-year to $236,195, the second highest level ever.

Contracts closed on 5,779 single-family homes. That is the largest one-month sales volume since August 2012. All housing segments experienced gains except for those priced under $80,000. Homes selling between $80,000 and $250,000 registered the greatest sales volume increase.
“REALTORS® continue to see multiple offers on single-family homes and condos throughout the Houston market, which suggests that our local economy is growing stronger by the day,” said HAR Chairman Danny Frank with Prudential Anderson Properties. “Governor Rick Perry recently stated that Texas is the fastest growing state in the country, and most of those people seem to be coming to the Greater Houston area because our job market is better than that of Dallas, Austin and San Antonio.”

In reporting the addition of 118,700 net jobs during the past year, the U.S. Bureau of Labor Statistics ranked Houston No. 1 for job growth among the 20 most populous U.S. cities. The 4.5 percent hiring increase returns Houston to its previous job peak of the fall of 2011.

Foreclosure property sales reported in the HAR Multiple Listing Service (MLS) declined 27.2 percent compared to March 2012. Foreclosures currently make up 12.3 percent of all property sales, down from 15.8 percent one month earlier. The median price of foreclosures climbed 5.8 percent to $86,000.
March sales of all property types in Houston totaled 7,006, a 19.4 percent increase over the same month last year and the largest one-month volume since last August. Total dollar volume for properties sold leapt 23.6 percent to $1.6 billion versus $1.3 billion a year earlier.

March brought positive results to Houston’s overall real estate market when all sales categories are compared to March 2012. On a year-over-year basis, total property sales, total dollar volume and average and median pricing all rose.

Month-end pending sales totaled 4,433. That is up 6.5 percent from last year and portends the likelihood of another month of positive sales when the April figures are tallied. Active listings, or the number of available properties, at the end of March declined 22.1 percent from March 2012 to 32,704.

Housing inventory in Houston held at 3.6 months in January and February, but slipped slightly in March to 3.5 months. That remains the lowest level recorded since 1999. Inventory first fell below a five-month supply in August 2012 and then dropped below a four-month supply last December. The inventory of single-family homes across the United States stands at 4.7 months, according to the latest report from the National Association of REALTORS® (NAR).

CATEGORIES	MARCH 2012	MARCH 2013	CHANGE
Total property sales	5,866	7,006	19.4%
Total dollar volume	$1,276,756,997	$1,578,481,653	23.6%
Total active listings	41,997	32,704	-22.1%
Total pending sales	4,162	4,433	6.5%
Single-family home sales	4,941	5,779	17.0%
Single-family average sales price	$225,809	$236,195	4.6%
Single-family median sales price	$161,500	$172,000	6.5%
Months inventory*	5.6	3.5	-37.7%

* 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

Lease Property Update

Houston Real Estate Milestones in March

• Single-family home sales increased 17.0 percent year-over-year, accounting for the market’s 22nd consecutive monthly increase and the largest one-month sales volume since August 2012;
• Total property sales rose 19.4 percent compared to one year earlier and also accounted for the largest one-month sales volume since August 2012;
• Total dollar volume jumped 23.6 percent, increasing from $1.3 billion to $1.6 billion on a year-over-year basis;
• At $172,000, the single-family home median price reached an historic high for Houston;
• At $236,195, the single-family home average price reached the second all-time highest level;
• 3.5 months inventory of single-family homes is the lowest level since 1999 and compares to the national average of 4.7 months;
• Sales of townhouses/condominiums shot up 47.1 percent year-over-year.

For more information about real estate issues in Katy or West Houston contact Steve Reddell. He is a licensed REMAX real estate agent in Katy, Texas you can trust. You can contact him directly at 281-994-5173 or visit him on the web at Katy Family Homes.

The computerized Multiple Listing Service of the Houston Association of REALTORS® includes residential properties and new homes listed by 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 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.