For the 7th consecutive month, the Houston real estate market continued to see robust home sales. as home buyers continue to take advantage of low mortgage rates.
According to the Houston Association of Realtors, sales of single-family homes across the Houston area totaled 7,035 in September. This is up 9.5% from the same period in 2018. On a year-to-date basis, home sales are running 3.8 percent ahead of 2018’s record volume.
For the second month in a row, homes priced between $250,000 to $500,000 saw the most activity, up 18.7 percent compared to September 2018. That was followed by homes in the $500,000 to $750,000 range, which rose 12.6 percent. The luxury segment, which is comprised of homes priced from $750,000 and up, declined 2.6 percent.
Median home prices for single-family homes reached an all-time high for September, climbing 4.7 percent to $244,000. The average price also hit a record for September, rising 1.5 percent to $298,947.
According to HAR, total active listings, or the total number of available properties, went up 7.3 percent to 44,172. September sales of all property types totaled 8,430, up 9.5 % compared to the same month last year. As a result, the absorption rate for September 2019 was flat from where it was in September of 2018 for all property types.
Days on Market (DOM), or the number of days it took the average home to sell, was 55 compared to 53 a year ago. Inventory expanded to a 4.1-months supply. That is up from 4.0 months year-over-year and is just below the 2019 peak of 4.3 months reached in June and July. It matches the national inventory of 4.1 months reported by NAR.
Interest rates continue to be a big driver in the Houston real estate market. Although rates have moved up slightly, this will probably help buoy home sales even as we move into the slower fall to winter seasonal markets.
As always, keep in mind that real estate is a hyper-local market. In order to get the best advice contact one of our experienced agents. They would be happy to provide you more specific advice based on your budget and neighborhood.