Despite continually falling inventory levels, homebuyers continued to buy up the available properties and continued the robust market we saw throughout 2020. Luxury and mid-market homes performed particularly well.
According to the latest report from the Houston Association of Realtors (HAR), 6,088 single-family homes sold in December compared to 4,769 a year earlier for a 27.7 percent increase. That marked the eighth consecutive month of rising home sales. Homes priced between $500,000 to $750,000 jumped 70.4 percent year-over-year and homes between $250,000 and $500,000, which comprise the market’s biggest share of sales, shot up 61.9 percent. Not too shabby for January.
The average price for single-family homes increased 12.5 percent to a high for January of $326,063. The median home price increased 12.1 percent to $263,500. That’s also a January high.
According to HAR, total active listings, or the total number of available properties, fell 31.3 percent to 26,271. January sales of all property types totaled 7,519, up 27.5% compared to January of last year. As a result, the absorption rate for January 2021 was 29%. The highest rate in over 10 years.
Days on Market (DOM), or the number of days it took the average home to sell continues to remain relatively steady. In January, the average home sold in 48 days. Single-family homes inventory narrowed dramatically from a 3.3-months supply to 1.8 months. For perspective, housing inventory across the U.S. currently stands at a 1.9 months supply, according to the latest National Association of Realtors (NAR) report.
As the new year begins, the market remains very similar to the close of 2020. Homebuyers continue to gobble up the little inventory that remains active. We do anticipate seeing an expansion of inventory in the next couple of months as we approach the Spring selling season. This presents an opportunity for home sellers to beat other homes to market in February and March. Their home may have a more captive audience with so few homes to currently see and tour.