Houston housing market continues to show strong recovery through October

by Rincey Abraham

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The Houston real estate market showed its resiliency after Hurricane Harvey with home sales and rentals continuing to show growth for the second month in a row, according to the latest monthly report from the Houston Association of Realtors.

Single-family home sales grew 7.5 percent from last year and all segments of the housing market showed gains except for homes priced below $150,000. Total sales are 6.6 percent higher than this time last year, with October 2016 seeing 7,145 sales and this October reaching 7,614. Home sales are 2.8 percent ahead of 2016’s volume on a year-to-date basis despite many neighborhoods still rebuilding.

The Days on Market increased from 56 days in October 2016 to 61 days in October 2017. Housing inventory is also up from 3.8 months in October 2016 to 3.9 months in October 2017. However, this is down from the 4.3 months supply that the Houston housing market reached in the weekends right before Harvey.

“The overall Houston real estate market wasted little time recovering from Hurricane Harvey’s devastation, but we’d like to see supply grow to meet ongoing consumer demand for housing,” said HAR Chair Cindy Hamann. “Hopefully, more balanced inventory levels can be restored by early in the new year.”

Home prices hit October highs as both median and average prices rose on a year-over-year basis. Single-family home median price increased 3.9 percent to $226,491 and the average price rose 2.7 percent to $285,858.

The townhome and condominium market also rose 5.8 percent with 543 units sold in October. However, prices declined as the average price dropped 1.1 percent to $195,393 and the median price declined 3.1 percent to $153,000. Inventory also grew from 3.7 months to 3.9 months, but is down from the pre-Harvey peak of 4.5 months.

  Oct. 2016 Oct. 2017 % Change
Total property sales 7,145 7,614 6.6%
Total dollar volume $1,872,316,367 $2,073,789,548 10.8%
Total active listings 37,185 39,692 6.7%
Single-family home sales 5,934 6,381 7.5%
Single-family average sales price $278,355 $285,858 2.7%
Single-family median sales price $218,040 $226,491 3.9%
Single-family months inventory* 3.8 3.9 0.1 mos.
Single-family pending sales 5,999 7,201 20.0%
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