Sales volume enters negative territory for the first time in seven months
The Houston real estate market experienced its first sales slowdown since Hurricane Harvey last August, as 6,810 single-family homes sold in March versus 6,982 a year earlier. That represents a 2.5-percent decline. The rental market also saw waning consumer interest for both single-family homes and townhomes/condominiums. However, inventory of homes for sale reached the most plentiful level in four months.
According to the latest monthly report from the Houston Association of REALTORS® (HAR), the best-performing segment of the market consisted of homes priced in the $500,000 to $749,999 range, which rose 7.0 percent. The luxury market – those homes priced at $750,000 and above – was flat for the second month in a row.
Home prices reached the highest levels ever for a March. The single-family home median price (the figure at which half of the homes sold for more and half sold for less) increased 2.4 percent to $233,500 and the average price climbed 3.0 percent to $292,756.
“We were a bit surprised that sales slowed during the lead-up to the traditional spring buying season, but are pleased to see that inventory levels have improved,” said HAR Chair Kenya Burrell-VanWormer with JPMorgan Chase. “It’s possible that consumers are hesitant to buy in light of recent stock market volatility and how that might affect their personal finances.” March sales of all property types in Houston totaled 8,274, a decline of 2.3 percent versus the same month last year. Total dollar volume grew 0.7 percent to $2.3 billion.
March Monthly Market Comparison
The Houston real estate market achieved mixed results for the month of March, with single-family home sales and total property sales down while pricing and total dollar volume were up compared to March 2017. Month-end pending sales for single-family homes totaled 8,327, up 9.5 percent from last year. Total active listings, or the total number of available properties, fell 4.6 percent to 35,004.
Single-family homes inventory reached a 3.4-months supply in March versus 3.6 months a year earlier, but is at its highest level of this year. It held at a 3.2-months supply throughout January and February. For perspective, housing inventory across the U.S. also stands at a 3.4-months supply, according to the latest report from the National Association of REALTORS® (NAR).
Single-Family Homes Update
Single-family home sales fell 2.5 percent in March, with 6,810 units sold throughout greater Houston compared to 6,982 a year earlier. Sales volume in the luxury market – defined as homes priced from $750,000 and up – was unchanged for a second consecutive month.
The median price reached the highest level ever for a March in Houston, increasing 2.4 percent to $233,500. The average price also reached a March high, up 3.0 percent to $292,756.
Days on Market (DOM), or the number of days it took the average home to sell, edged up from 61 to 63 days. Inventory narrowed from a 3.6-months supply to a 3.4-months supply year-over-year, but is at its highest level of 2018.
Broken out by housing segment, March sales performed as follows:
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.