According to the Houston Association of REALTORS® February 2022 Market Update, single-family home sales totaled 7,372 last month, a 22.9% jump from the previous year. 

Currently, median rents in Houston stand at $1,012 for a one-bedroom apartment and $1,204 for a two-bedroom. Houston’s median two-bedroom rent is below the national average of $1,294, an Apartment List report noted.

The average list price (ALP) for a Houston home rose to an all-time high in February, supporting ongoing concerns about housing affordability in 2022, the Houston Association of REALTORS® (HAR) reported this week. 

Homeowner tenure has flattened since its 2020 peak.

Despite inventory challenges, the market for new homes in Houston is showing signs of improvement. A new report from HomesUSA.com revealed that new homes are staying on the market longer and prices and sales are stabilizing. 

Demand has been trending up since the beginning of the pandemic.

Houston’s new home listings began to level out during the week ended Feb. 28, following skewed readings resulting from the mid-February winter freeze in 2021.

The pace of new home listings is gaining steam, a welcome development in the face of high demand from buyers, Redfin reported.

Buyers faced bidding wars as more rushed to purchase a home before mortgage rates jumped again.

“Given the situation in the market — mortgages, home costs and inventory — it would not be surprising to see a retreat in housing demand.” — NAR chief economist Lawrence Yun 

The Houston area had more than 392,000 single-family home building permits from January 2012 to December 2021, the report said. 

“Builders are entering 2022 with backlogs that they are having a hard time completing due to material and labor shortages, and new-home prices are sitting near a historic high.” — First American Deputy Chief Economist Odeta Kushi

While rising interest rates may lead to more reductions in the housing supply, it may also bring some much-needed balance to the market.

Mortgage applications fell more than 13% in the most-recent week tracked by the Mortgage Bankers Association’s Market Composite Index, while interest rates continued to rise. 

While listings dropped, sales still rose due to continued homebuyer demand.

“Production disruptions are so severe that many builders are waiting months to receive cabinets, garage doors, countertops and appliances.” — NAHB Chairman Jerry Konter