Houston Market Report: October 2020

Norhill Realty November 18, 2020

Mortgage rates remain at or near all-time lows and homebuyers continue to take advantage. As predicted, the Fall has started out as one of the strongest fall markets in Houston in recent memory and this should last into the holiday weeks to come.

According to the Houston Association of Realtors, single-family home sales across greater Houston totaled 9,287 in October compared to 7,187 a year ago, a 29.2 percent jump. The luxury home market continues to lead the way. Sales for homes priced at $750,000 and up surged 81.6 percent compared to October 2019. Homes priced between $500,000 to $750,000 jumped 78.4 percent year-over-year. This is quite a turnaround from the early months of the Covid pandemic.

The single-family home median price rose 11.1 percent to $266,685 while the average price increased 12.4 percent to $334,996. Both figures are record highs for October.

According to HAR, total active listings, or the total number of available properties, dropped 25.9 percent from October of last year. Total Sales on the other hand increased 31.5% to 11,232 from October 2019. As a result, the absorption rate for October 2020 was 36% compared to 17% in October of 2019. This Brawny level of absorption will no doubt continue to limit the number of available homes as we approach the holidays.

Higher absorption levels have also impacted the speed of home sales. Days on Market (DOM), or the number of days it took the average home to sell, lowered from 59 to 47. Due to a slowdown in new listings, single-family home inventory continues to fall, with 2.4 months supply in October versus 2.5-months in the previous month. For perspective, housing inventory across the U.S. stands at a 2.7 months supply, according to the most recent report from the National Association of Realtors (NAR). Houston’s inventory level is the lowest level we have seen since December of 2014.

**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.

 As long as inventory levels remain low and mortgage rates remain near current levels, we are more than likely going to see quick sales at higher prices. If you are looking to buy or sell a home, let us know. Every market and situation is different and we are happy to help you evaluate your options to determine if now is the right time for you.

Norhill Realty provides expert real estate services to residential buyers and sellers in Houston and surrounding communities. Contact us today for more information on Houston’s real estate and for professional assistance navigating this sometimes complex home market.

 

Find and click your neighborhood below to find the latest listings for these great Houston neighborhoods.
Afton Oaks / Highland Village
Bellaire
Briargrove
Briargrove Park / Walnut Bend
Camp Logan / Glen Cove
Cottage Grove
Downtown
EADO / Eastwood
East Washington / Sawyer Heights
Garden Oaks
Houston Heights
Knollwood / Woodside
Memorial West
Meyerland Area
Midtown
Montrose
Oak Forest East
Mangum Manor / Oak Forest West
Rice Military / Washington Corridor
River Oaks Shopping Area
Riverside Terrace
Shady Acres
Shepherd Plaza Park
Spring Branch
Timbergrove / Lazybrook
University Place and Museum Park
Westbury / Maplewood / Brays Oaks
West University / Southside
Willow Meadows / Willowbend

 

 

Norhill Realty and the MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Twelve-month totals may vary from actual end-of-year figures, due to individual changes to MLS records. This data is for informational purposes only and should not be the sole piece of data used in the evaluation of a buy or sell decision. Consult with one of our Realtors to evaluate any particular property so you can determine how the market relates to that property.