In 2014, Houston homes prices and sales set records as the market continued showing signs of strength despite concerns regarding oil prices. In July, and for the second consecutive month, sales and prices surpassed that record-breaking pace, according to the Houston Association of Realtors.

Single-family home sales drove the market with 8,147 total units sold – the highest one-month volume ever in the city – compared to 7,637 units during the same time last year, HAR reported. Homes were selling, on average, in 45 days – the same as in July 2014 – at a median price of $220,000, up 8 percent since a year earlier.

Inventory was up slightly, the report said. At the current sales pace, inventory is a 3.4-months supply, compared to a 3-months supply last July. While inventory remains well below national levels, Houston’s current supply represents the highest inventory levels since July 2013.

All Sectors See Gains

Further on in its report, HAR outlined performance metrics that showed a relatively positive performance for existing homes, as well as condominiums and townhomes, despite a slight hiccup in price.

• Existing-home sales totaled 7,133 in July. That is a 6.6 percent increase over the same month last year. The average sales price rose 5.2 percent year-over-year to $276,094 while the median sales price jumped 7.9 percent to $205,000.
• Sales of townhouses and condominiums increased 7.3 percent in July. A total of 720 units sold compared to 671 properties in July 2014. The average price, however, fell 3.8 percent to $202,991 and the median price declined 3.5 percent to $152,500. Inventory grew slightly from a 2.7-months supply to 2.9 months.

What Oil Problem?

For months, local industry insiders have voiced concerns over the potential of falling home prices as a result of the continuing weak price of crude, but July’s numbers reinforce the optimism so apparent in 2014. HAR Chair Nancy Furst gives credit to the city’s diverse economy.

“The Houston housing market has been blessed with another solid month of gains,” Furst, who works with Berkshire Hathaway HomeServices Anderson Properties, said. “Despite lingering concerns about falling oil prices and layoffs within the energy industry, I believe the strength of Houston’s housing market continues to be buoyed by our tremendously diverse local economy.”

As we’ve reported previously, the full affect to home prices from the drop in crude values may not be fully realized until late 2016.