The 2021 Houston real estate boom continued through June. Homebuyers continue to gobble up homes at a historic rate and took advantage of unwaveringly low mortgage rates.
According to the latest report from the Houston Association of Realtors (HAR), 10,638 single-family homes sold in June compared to 9,362 a year earlier for a 13.6 percent increase. That’s a good bit lower than 48.2 percent year-over-year increase we saw in May. However, 2020 numbers were obviously depressed in the early months of the pandemic. Regardless, this represents the thirteenth consecutive month of positive sales. On a year-to-date basis, home sales remain 25.9 percent ahead of 2020’s record pace.
Once again, the luxury home market, homes priced from $750,000 and above, dominated in sales volume with a 136.5 percent year-over-year increase. That was followed by the $500,000 to $750,000 segment, which soared 87.0 percent.
With luxury and high-end homes leading the way, home prices for single-family homes rose 23.7 percent to $395,316 and the median price increased 20.0 percent to $314,500.
According to HAR, total active listings, or the total number of available properties, fell 31.3 percent to 24,225. June sales of all property types totaled 13,090, up 16.9% compared to June of last year. As a result, the absorption rate for June 2021 was 44%! That means almost half of all homes listed went under contract in June. For as long as Norhill Realty has been tracking it, that’s the highest rate we’ve seen. Homes have been moving and many of them have been moving relatively fast.
How fast? Pretty fast. Days on Market (DOM), or the number of days it took the average home to sell, fell to 29 days in June. This number has been falling all year. Single-family homes inventory remained at just 1.4 months. Inventory ticked up slightly to 1.5-months compared to 1.4 in May. Housing inventory nationally stands at a 2.5-months supply, according to the National Association of Realtors (NAR).
In the weeks to come, we will see how resilient this market proves to be. In an average year, we can see a slight decline in home sales in late July and August as home buyers put their home search on pause due to the heat and summer vacations. As much activity we have seen this year, we may just blow through August. However, a slight decline might serve to replenish some inventory for homebuyers.
Whether the market is booming or slow, be prepared. Make sure you have the information you need to make an informed decision on when to start house hunting or listing your home. Contacting a Norhill Realtor is a good place to start. One of our experienced agents can talk you through the current state of the market in the neighborhoods you care about, and if buying, get you connected with an experienced, professional mortgage broker so you can decide on the timing that works for you.