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Home Sales Up 29 Percent in Houston – Strongest September Ever

HOUSTON – (Realty News Report) – Home sales were up 29 percent in Houston in September as historically low mortgage interest rates attracted buyers in a Fall flurry that Realtors have never seen before.

According to the Houston Association of Realtors, 9,101 single-family homes sold in September compared to 7,050 a year earlier.

September 2020 was the strongest September on record  for Houston home sales according to HAR.

It was only the fourth time that Houston home sales have surpassed the 9,000 mark in monthly sales totals.

Inventory is low. For months, Realtors have predicting that the low inventory will diminish sales. But it hasn’t happened.

An analysis by  Realty News Report predicted  that the sales pace will remain frenetic even though inventory is tight. So far that forecast has remained accurate.

The sales surge is unlikely to run out of gas due to inventory issues. Pending home sales were up 43.7 percent in September, indicating that explosive sales will not peter out soon.

The holiday season and the elections could prove to be distractions that tamp down consumer activity. Political uncertainty could be a market disrupter, as well.

Mortgage rates have been at historical lows, providing incentives for buyers. The average Freddie Mac 30-year mortgage has been below 3 percent and rates are expected to remain low for some time.

The sluggish pace of new listings combined with another month of strong sales drove single-family homes inventory down to a 2.5-month supply versus 3.9 months a year earlier. The last time inventory dropped that low was in December 2014. For September, however, new listings saw a 7.0 percent year-over-year increase, HAR said.

“September sales defied expectations with many Realtors busier than ever, however we anticipate that the pace of sales will soon slow down since there just aren’t a whole lot of homes out there for consumers to buy,” said HAR Chairman John Nugent with RE/MAX Space Center.

HAR reported the single-family home median price rose 8.3 percent to $265,000 – the highest median price for a September.

Last year was a record year for home sales in Houston. This year may be even stronger. On a year-to-date basis, Houston area home sales in 2020 are running 5.4 percent ahead of 2019’s sales.


Oct. 15. 2020 Realty News Report Copyright 2020


File: Home Sales Up 29 Percent in Houston in Sept. 2020


Photo credit: Ralph Bivins Realty News Report. Copyright 2020

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