Houston home prices hit record as luxury sales rise
Houston home prices reached a new record as the market became more balance with a jump in the supply of homes, according to the Houston Association of Realtors. The average Houston home price rose by 3.6% over the year to a record $443,970 in May, surpassing the previous high two years ago by $5,620, according to the Houston Association of Realtors’ monthly sales report. High-end homes saw a 3.5% increase in sales, with houses priced at $1 million or more rising by 9.6%, while those priced from $500,000 to $999,000 increased 6.8%. Sales volumes for homes priced below $500k also decreased for homes below $499,000. Despite weather disruptions, the Houston market continued to thrive, with increased available listings and persistent buyer interest. The monthly payment on a 30-year mortgage for a $345,000 house at 7% interest totalling $2,129, compared to what would have cost to buy a $250,000 mid-priced home in Houston prior to the pandemic in 2019.
Pubblicato : 10 mesi fa di Staff writer, Katherine Feser in Business
The average single-family home jumped 3.6% over the year to a record $443,970 in May, eclipsing the previous high two years ago by $5,620, according to the Houston Association of Realtors’ monthly sales report.
Overall, sales of single-family homes across the Houston area slipped 1.5% over the year to 8,538 in May, down from 8,664 in May 2023, according to HAR.
“The Houston market has demonstrated its adaptability yet again,” HAR Chair Thomas Mouton, of Century 21 Exclusive Properties, said in an announcement. “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.”
High-end homes pushed up the average sales price. Sales of houses priced at $1 million or more climbed 9.6%, while those priced from $500,000 to $999,000 increased 6.8%. Sales volumes were down for homes priced below $500,000.
Buyers had more options as active listings increased to 28,481 single-family homes, a nearly 50% jump over May 2023 and similar to pre-pandemic levels of 2019.
The month's inventory, representing how long it would take to sell everything on the market at the current pace, rose to four months. That’s up from 2.7 months in May 2023 and the highest since the pandemic. Four to six months of inventory is considered a balanced market.
The monthly payment on a 30-year mortgage for a $345,000 house at 7% interest totals $2,129, according to Bankrate.com. That’s $964 more per month than what it would have cost to buy a $250,000 mid-priced home in Houston prior to the pandemic in 2019 with a 3.8% loan. The amounts are for principal and interest and don’t include property tax or insurance.
“Rates are just shy of 7%, and we expect them to modestly decline over the remainder of 2024,” Freddie Mac Chief Economist Sam Khater said in a weekly mortgage report. “If a potential buyer is looking to buy a home this year, waiting for lower rates may result in small savings, but shopping around for the best rate remains tremendously beneficial.”
Temi: Real Estate