Houston homes hit all-time high prices amidst slowing sales
The Houston real estate market weathered several negative news, including a derecho, rising record high home prices, and the decline of sales. The Houston real estate market saw a 1.5 percent decline in sales in May, with home prices reaching a record high of $443,970, surpassing the May 2022 record. According to a report from the Houston Association of Realtors, single-family home sales fell to 8,538 units, down from 8,664 units sold in May 2023. The inventory of properties also increased, rising from 2.7 months to 4, the highest level since August 2019. Despite these setbacks, the high-end market saw the strongest performance, with sales over $1 million or more increasing by 9.6 percent. However, total property sales were also down 3.1 percent and total dollar volume was "statistically flat" at $4.3 billion.
ที่ตีพิมพ์ : 10 เดือนที่แล้ว โดย Janet Miranda ใน Finance
The Houston real estate market saw a 1.5 percent decline in sales last month, as home prices in the area reached a record high averaging at $443,970, surpassing its May 2022 record.
According to a new report from the Houston Association of Realtors, single-family home sales fell in May, totaling 8,538 units, down from 8,664 units sold in May 2023. The inventory of properties also increased dramatically, rising from 2.7 months to 4, the highest level since August 2019.
The local real estate market saw a few bumps this month, with a derecho that took everyone in Houston by surprise causing some delay in closings, and single-family home prices topping their previous record-breaking $438,350 average from two years ago.
"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 high-end market, defined as sales over $1 million or more, saw "the strongest performance" this month, according to HAR. Home sales in this segment climbed 9.6 percent. This segment represents less than 5 percent of the total homes on the market. Homes prices between $500,000 and $1 million saw a 6.8 percent jump in sales year-over-year.
But that's the only bright spot of the new report, total property sales were also down 3.1 percent and total dollar volume was "statistically flat" at $4.3 billion, per HAR's report.
Although home sellers might be returning to the market, it's clear that homebuyers are hesitating, with inventories accumulating at a faster pace, according to Zillow. Home listings outpaced sales in May, as inventory accumulated 22 percent nationwide, Zillow said in its market report.
"Homeowners who may have put off listing their homes are done waiting. But just as more choices sprang up for sale, buyers turned on cruise control," said Orphe Divounguy, Zillow senior economist. "Inflation has hit younger households hardest, and stubbornly high rates have pushed a mortgage out of reach for many first-time buyers. That has cooled competition for houses. If these trends hold, we're likely to see price growth flatten or tick down over the next year."