HOUSTON – (By Dale King, Realty News Report) — Houston’s average home price hit a record high of $443,970 in May, up 3.6 percent from May 2023 when the average price was $428,350., the Houston Association of Realtors reported.
Dwindling affordability has plagued the housing market. Mortgage rates in the 7 percent range and rising inflation have presented hurdles for home buyers.
The market for upscale homes has shown strength and the sale of those high-end houses pushed Houston’s average price upward.
Over the long home ownership has produced wealth. A decade ago, Houston’s average home price was $279,422 in May of 2014.
That means the average prices have gone up 60 percent in Houston over the last 10 years.
Bad weather in May caused a slight decline in the pace of home sales.
The Houston real estate market endured some challenging weather-related conditions during May – from serious storms to resulting power outages. But the Space City’s housing marketplace – for the most part — emerged from the spring season’s problems generally unscathed.
Quirky meteorological circumstances “may have caused a delay in some closings, [but] the market continued to see strong activity with expanding inventory and persistent consumer demand,” says the Houston Association of Realtors’ May 2024 Market Update.
HAR says severe weather in and around Houston played a role in the slight decline in single-family home sales. The Houston Multiple Listing Service recorded 8,538 residences purchased, a 1.5 percent decline compared to 8,664 sales last May.
Home inventory increased from a 2.7-months supply in May 2023 to 4.0 months this May. Nationally, housing inventory stands at a 3.5-months supply, says the latest documentation from the National Association of Realtors (NAR). A 4.0- to 6.0-month supply is generally considered a “balanced market” in which neither buyer nor seller has an advantage.
“The Houston market has demonstrated its adaptability yet again,” said HAR Chair Thomas Mouton with Century 21 Exclusive Properties. “While the weather disruptions may have impacted some sales, there continued to be strong activity with a rise in available listings and persistent buyer interest. We are beginning to see a more balanced market pace, benefiting both buyers with more options and sellers with sustained demand.”
The HAR report says luxury homes topped the overall sales list in May. Housing transactions involving dwellings in the high-end segment ($1 million+), which represents just 4.8 percent of all homes on the market, climbed 9.6 percent.
That was followed by the category of homes priced between $500,000 and $1 million which rose 6.8 percent year-over-year. All other housing segments experienced a slowdown in sales last month.
Broken out by housing segment, May sales performed as follows:
- 1 – $99,999: decreased 6.7 percent;
- 100,000 – $149,999: decreased 10.2 percent;
- $150,000 – $249,999: decreased 1.2 percent;
- $250,000 – $499,999: decreased 2.1 percent;
- 500,000 – $999,999: increased 6.8 percent;
- $1M and above: increased 9.6 percent
Total property sales were also down 3.1 percent and total dollar volume from those consummated deals was statistically flat at just shy of $4.3 billion. Pending sales of single-family dwellings rose 1.8 percent.
Active listings remain above last year’s level with 38.2 percent more residences for sale now than at this time last year. The number of days that home listings remained on the market last month compared to a year ago decreased from 49 to 45 days.
HAR also breaks out sales figures for existing single-family homes which totaled 6,225 in May, down 2.2 percent from the same time last year. The average price rose 6.1 percent to $456,769 and the median sales price increased 3.6 percent to $345,000.
In May, HAR says, the inventory of townhomes and condominiums hit the highest level in nearly 12 years. the number of available properties grew from a 2.5-months’ supply last May to 4.7 months, the highest since October 2012 when it was 5.0 months.
Sales continued to decline, decreasing 9.8 percent year-over-year with 555 closed sales compared to 615 in May of last year. The average price of townhomes and condominiums rose 7.5 percent to a record high of $281,777 while the median price jumped 12.1 percent to $241,600.
June 13, 2024 Realty News Report Copyright 2024
Photo credit: Cynthia Lescalleet, CALpix Copyright 2024
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