The winter slowdown continued in January. Sales volume across all markets was down in January, including the luxury home market. Luxury home sales had been up for the previous 12 consecutive months.
According to the latest monthly report from the Houston Association of Realtors® (HAR), 4,100 single-family homes sold in January compared to 4,462 a year earlier. This represents the third month of falling sales volume.
The single-family home median price rose 1.4 percent to $222,000, and the average price increased 2.4 percent to $277,483. Both represent the highest prices ever for January.
According to the Houston Association of Realtors, the 38,872 active listings in January 2019 represented a 16.8 percent increase from January 2018. Month-end pending sales for single-family homes totaled 6,528, a 12.0 percent increase over last year.
Days on Market (DOM), or the number of days it took the average home to sell, narrowed from 68 to 65 days.
Inventory level rose to a 3.7-months supply, up from 3.2 months a year earlier and matches the current national inventory level reported by NAR.
Current market conditions present a great opportunity for home buyers that are ready to enter the market. Home prices are down and rising inventory levels present more options for home buyers. Although up, mortgage rates are still at historic lows.
Whether conditions continue in the home buyer’s favor into the Spring is an open question, the winter months usually are the slower months in the real estate market. According to economic surveys, the Houston economy continues to strengthen. If the economy remains, we could see an uptick in buyer demand in the coming months.