HAR: Houston’s real estate buying blitz persists in June

by Alsha Khan

Houston’s buying frenzy is far from over, as buyers continued to take advantage of historically low interest rates in June. However, although still very strong, the pace for buying activity slightly slowed year-over-year during the month, according to the latest Houston Association of Realtors Market Update.

In June, the Houston market saw its 13th consecutive month of sales growth with 10,638 single-family home sales, up 13.6% compared to June 2020. Total sales of all property types increased 16.9%, with 13,090 units sold – the highest volume in history. Home sales remain 25.9% ahead of 2020’s record pace.

The total dollar volume and single-family average home price also rose to historic highs, up 43.8% to $4.8 billion and up 23.7% to $395,316, respectively. Data for more categories can be seen in the chart below, including the average days on market figure and single-family home inventory, which are both significantly down compared to the same time last year.

Courtesy of HAR.

Active listings, or the number of available properties, remain 36.4% lower than last year’s levels. However, new listings were up by almost 13%, which might help with dwindling inventory levels.

Houston’s luxury market dominated sales volume, with the sales of homes priced at $750,000 and above rising a whopping 136.5% year-over-year. Luxury broker Walter Bering told Houston Agent magazine that his personal volume of pending sales is the highest it’s ever been in his 42 years in the business.  “I’m on track to have my best year ever. I feel like we’re just getting warmed up!” he said. “The luxury market under $2 million is selling very well.  Depending on the area, properties over two to four million range may have more days on market.  Over the past year I have seen more sales in excess of $5 million than any prior years.”

Townhome and condo sales soared almost 50%, with the average price up almost 17% to a record-setting $247,827. Single-family home rentals fell 24.1%, while townhome and condo leases remained flat, increasing 4% compared to last year.

In reference to the high energy of the current market, HAR Chairman Richard Miranda said, “We saw similar investment activity following Hurricane Harvey, and within a few months, the market stabilized. We expect stability to return this time around, so anyone in the market for a home who is frustrated by current market conditions needs to be patient.”


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