January is usually one of the slowest times of the year for closings. However, there are some signs that 2017 could be a positive one. As reported by the Houston Association of Realtors, “Homes priced between $500,000 and $750,000 showed the strongest sales activity, and the luxury market ($750,000 and above) enjoyed its third consecutive month in the black, reflecting resistance to any lingering effects of the ailing energy industry.” This is good news for a sector that showed some softness in 2017.
In general, prices in the Houston real estate market climbed during that year-long period ending in January 2017. The median price of a single-family home in the Houston area increased 4 percent between January 2016 and January 2017, to $210,000. Average home prices in general rose 2.29 percent during that period to $310,348.
According to the Houston Association of Realtors, the 34,958 active listings in January 2017 represented a 8.6 percent increase over January 2016. Pending listings increased January 2017 to 6,286, a 24.7! percent increase over January 2016. Actual sales of properties rose 1.7% to 4,080 over the same period in Houston.
Homes spent an average of 64 days on the market in January 2017, which is an ever so slight increased from the average 63 days on market from the same period in 2016.
Inventory levels continue to hold steady at 3.5 months worth of available units. This bodes well for home sellers and home prices.
The luxury home sales activity is the strongest sign yet that a strong 2017 may be on the horizon. Houstonians looking to upgrade to a larger home were few and far between in 2016. With their return, we could see rising home prices and an increased number of sales in luxury neighborhoods and inside the loop.