Houston market shows resiliency in 2017 despite Hurricane Harvey

by Rincey Abraham

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Hurricane Harvey did not slow down the Houston residential market as it saw its strongest year ever in 2017. According to the Houston Association of Realtors, residential sales in 2017 totaled nearly 95,000, a 3.5 percent climb over last year, which was the previous record year.

“No one could ever have imagined 2017 turning out to be a record-setting year for the Houston real estate market, which had weathered the effects of the energy slump only to have Harvey strike such a devastating blow,” said HAR Chair Kenya Burrell-VanWormer.

By the end of 2017, 79,117 single-family homes were sold, while 94,726 total properties were sold last year. The total dollar volume of the sales jumped 6.5 percent from $21.7 billion in 2016 to $23.1 billion in 2017. The average price rose 2.9 percent to $291,340, while the median sales price rose 3.8 percent to $229,900.

At the beginning of the year, the amount of housing inventory sat at 3.3 months and slowly grew up to 4.3 months right before Harvey hit the area. It dropped back down to 3.2 months of supply by year end, so 2018 is beginning with a constrained housing supply.

  2016 2017 Change
Single-family home sales  76,450  79,117 3.5%
Total property sales  91,530  94,726 3.5%
Total dollar volume $21,645,218,533 $23,049,934,248 6.5%
Single-family average sales price $283,133 $291,340 2.9%
Single-family median sales price $221,500 $229,900 3.8%

December 2017 saw a 3.5 percent increase in total sales compared to December 2016, with 8,125 properties sold. Month-end pending sales for single-family homes were 5,413, a 24 percent jump over December 2016.

“We know that many are still working tirelessly to rebuild their lives after Harvey, but overall, this clearly illustrates the incredible resilience of the people and the economy of Houston, Texas,” Burrell-VanWormer said.

  Dec ’16 Dec ’17 Change
Total property sales  7,850  8,125 3.5%
Total dollar volume $2,209,007,615 $2,271,587,746 2.8%
Total active listings  34,199  33,432 -2.2%
Total pending sales  6,606  6,875 4.1%
Single-family average sales price $294,035 $292,174 -0.6%
Single-family median sales price $226,050 $230,000 1.7%
Single-family months inventory 3.4 months 3.2 months -0.2
Single-family pending sales  4,367  5,413 24%
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