Houston Home Sales Up 23 Percent in November as City Rebounds From Oil Crash, Realtors Report

HOUSTON — Houston home sales surged 23 percent in November, as the city showed a strong rebound from the oil bust, the Houston Association of Realtors said Wednesday.

West Texas Intermediate crude has been trading above $50 a barrel recently, following a devastating and rapid fall that took the price below $30 a barrel earlier this year.

Houston had 5,706 home sales in November up from 4,651 sales in November of last year when the stumbling oil market eroded realty sales, the HAR said.

Sales of upscale homes (priced at $500,000 and above) —the segment most hurt by the ailing energy industry— leapt almost 33 percent. It was the first increase that segment has seen since August 2015.

The Energy Market – and Houston realty – could also gain additional momentum under the Trump administration, which appears to be more friendly to fossil fuels than the Obama administration. Trump has tapped Exxon Mobil CEO Rex Tillerson to by Secretary of State and former Texas Gov. Rick Perry to lead the Department of Energy.

Overall, 2016 has been an outstanding year for home sales. On a year-to-date basis, home sales are up 2.7 percent compared to this point in 2015. Inventory levels grew slightly from a 3.4-months supply to 3.6 months.

“It looks like the Houston real estate market is sprinting toward the 2016 finish line, based on the solid numbers in November’s report,” said HAR Chairman Mario Arriaga with First Group. “The market has shown tremendous resilience throughout the year in the midst of a struggling energy sector, and we are especially encouraged by the strong sales volume that the luxury home segment registered last month.”

The single-family home median price (the figure at which half of the homes sold for more and half sold for less) rose 8.3 percent to $222,000 That marks the highest median price ever for a November. The average price increased 7.2 percent to $281,671, which also represents a November high.