Houston Home Prices Surge to Record High

HOUSTON – (Realty News Report) – Houston home prices skyrocketed in April, with the average house selling for $426,061, up 14.9 percent from April of 2021, the Houston Association of Realtors reported.

It was only the second time that Houston’s average single-family sale price topped the $400,000 mark. The first time was in March

By comparison, decade ago Houston’s average home price was $222,703 in April 2012, almost half the price of today’s typical house.

Demand remains incredible high and the inventory of homes for sale remains incredibly low.

Most Buyers Pay Over List Price

The majority of buyers in April paid over the original list price, the HAR said. Bidding wars occur and competition for quality home is brutal and brisk. Some buyers become discouraged when faced with repeated disappointment when other people buy the house they want.

“The ‘Close to Original List Price Ratio’ for single-family homes reached 100.6 percent in April — the highest percentage ever. That means that a majority of buyers paid above list price for homes on the market,” the Houston realty association said.

Median Price Up 16.6 Percent From A Year Ago

The median price jumped 16.6 percent to $343,990 in April, compared to $295,000 in April of last year.

Mortgage rates have been rising at their fastest pace in 40 years. The 30-year, fixed-rate mortgage was averaging around 3 percent at the beginning of the year and today’s mortgage are now approaching 6 percent. Inflation is also galloping upward, meaning first-time buyers must either lower expectations or reside in rental housing.

Rising rates have encouraged some fence-sitters to accelerate their home buying plans.

“The rise of interest rates has gotten the attention from many buyers who were considering making a home purchase, but were not in an immediate hurry to do so,” Houston Realtor Amy Bernstein of Bernstein Realty said in a recent interview. “Many of these buyers have now entered into the market with the goal of purchasing a home before rates go up any higher.”

“Consumers have grown increasingly weary of the buying frenzy and many are considering postponing their purchasing plans because pricing and interest rates have exceeded their reach,” said HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene. “Contrary to what some people think, we do actually have new listings hitting the market, but they are selling exceptionally quickly and at some of the highest prices of all time as buyers and investors make cash offers well above asking price to beat back their competition,”

Twenty One Houses

The volume of sales in April was almost unchanged from April of last year.

HAR reported 9,079 single-family homes sold in April, a decline of 21 sales from the 9,100 homes sold in April of last year.

However, selling more than 9,000 homes in a month still is strong. It’s only happened 15 times in the long history of Houston real estate.

 May 12. 2022 – Realty News Report Copyright 2022

Photo Credit: Ralph Bivins Realty News Report Copyright 2022

LISTEN: THE RALPH BIVINS PROJECT podcast with guest MARY SHANKLIN, a Florida journalist who has covered Disney real estate for years.

File: Houston Home Prices Surge to Record High

 File: HAR. Houston Home Prices Surge to record high. $426,061 average. Amy Bernstein. Jennifer Wauhob

Related posts

Camden Moving HQ to Williams Tower

Realty News Report

RNR Real Estate Briefs – Texas & more

Realty News Report

Sandwich Generation Cuts the Realty Mustard

Realty News Report

Leave a Comment