After a hot summer of home sales and rising home prices, the market has continued to cool into September. Considering the slight rise in interest rates, tightening inventory, and the kid’s heading back to school, this does not come as a surprise.
According to the latest report from the Houston Association of Realtors (HAR), 6,548 single-family homes sold in September compared to 6,953 a year earlier. That represents a 5.8-percent decline. On a year-to-date basis, however, home sales are running 5.6 percent ahead of 2017’s record volume.
The single-family home median price (the figure at which half of the homes sold for more and half for less) is up ever so slightly to $232,500, and the average price edged up 1.2 percent to $295,765. Both represent the highest prices ever for a September. All housing segments experienced declines except those homes priced at $750,000 and above – considered the luxury market – which rose 2.7 percent.
HAR also compared September 2018 home sales to September 2016 – the last August for which a complete month of data were available. A total of 8,016 single-family homes sold back then, accounting for a 4.3 percent increase two years later. On a year-to-date basis, home sales are currently 7.2 percent ahead of 2017’s record volume.
According to the Houston Association of Realtors, the 41,560 active listings in September 2018 represented a 5.7 percent increase from September 2017. Month-end pending sales for single-family homes totaled 6,630, a 9.0 percent increase over last year
The Days on Market (DOM) figure, or the number of days it took the average home to sell, was 52 compared to 54 a year earlier.
Inventory registered a 4.0-months supply, up ever so slightly from 3.9 months a year ago.
According to the Greater Houston Partnership’s October Economic Report, the Houston economy remains strong. If the city’s economy continues to grow, we fully expect the same thing to occur in the real estate market into 2019.