Houston’s real estate activity was unusually high in November despite the Thanksgiving holiday, even as inventory hovered at historically low levels. Renters also brought much-needed business back to the lease market following slight declines in October.
According to the Houston Association of Realtors (HAR) November 2021 Market Update, single-family homes rose 3.9% compared to the same month last year. On a year-to-date basis, local home sales are 12% ahead of 2020’s record pace and up 22.2% from 2019.
Homes priced between $500,000 and $1 million drew the most significant sales volume increase for the month, registering a 49.1% year-over-year gain. The $250,000 to $500,000 housing segment came in second with a 26.2% rise. That was followed by the luxury segment (homes priced above $1 million), which rose 23.4% over its November 2020 level.
The heavy volume of high-end buying and lack of inventory of homes under $250,000 pushed overall prices upward. The average price of a single-family home rose 12.6 percent to $383,807, while the median price rose 16.3 percent to tie the record-high $314,000 it initially reached in June 2021.
“Throughout the pandemic, the Houston housing market has been unpredictably strong and November was no exception,” said Richard Miranda, HAR chairman. “We remain on track for a record 2021, and the Greater Houston Partnership (GHP) sees positive conditions for local employment going into 2022, which is good news for real estate.”
In the November 2021 edition of The Economy at a Glance, GHP reported the following: “The region’s workforce continues to recover. Approximately 280,000 Houstonians (on-net) dropped out of the labor force in the early stages of the pandemic. All but 55,000 have returned. Houstonians who stood on the sidelines are rejoining the workforce. Young adults coming of age are entering the labor market. And workers from other metros and other countries are moving here for job opportunities.”