Although not as spectacular as June of 2018, the Houston real estate market continued to grow in June 2019. The real estate market continues to perform positively thanks to low-interest rates and a larger range of options available to home buyers. According to the Houston Association of Realtor’s monthly report, homes priced between $250K and $500K performed most positively. The luxury home segment (homes priced at $750,000 and above) was flat.
Median home prices for single-family homes reached an all-time high, climbing 2.9 percent to $252,000. The average price rose to the highest level ever for a June, up 2.0 percent to $321,973.
According to HAR, total active listings, or the total number of available properties, went up 11 percent to 45,262. June sales of all property types totaled 9,461, down 35.1% compared to the same month last year. As a result, the absorption rate for June 2019 increased slightly to 24% versus the 21% rate we saw in June of 2018.
Days on Market (DOM), or the number of days it took the average home to sell, was 49 compared to 48 a year ago. Inventory grew to 4.4-months supply. That is up from 4.1 months year-over-year. Home inventory levels are slightly above the national inventory of 4.3 months reported by the National Association of Realtors (NAR).
Considering the Federal Reserve expected response to current economic conditions, we anticipate that mortgage will remain relatively low over the coming months. This continued low interest-rate environment and increasing housing options should continue to make for a much more buyer-friendly market in some neighborhoods and market segments.