Home sales in Houston dropped below last year’s figures; however, real estate prices in Space City continued to move up in the third quarter, according to a recent report.
The Texas Association of Realtors recently released its third-quarter housing report, which tracked various components of the housing market in 25 metropolitan regions across the state. The state association relied on data from the Houston Association of Realtors to complete its quarterly report. Here are just a few key points from the report:
Fewer single-family homes are being sold.
Houston-area Realtors sold 22,753 single-family homes in the third quarter 2016. This is 1.3 percent less than the amount of single-family homes sold in Houston this time a year ago. Statewide, home sales were actually up 0.2 percent year over year in the third quarter.
More homes are on the market.
There were 25,564 active home listings in the Houston area during the third quarter, up 12.9 percent year over year, according to the report. Currently, Houston’s inventory is at a 3.9 months supply, up from 3.4 months from the third quarter 2015. Months of inventory is a measure of how long the listed homes would last on the market based on the average sales pace from the previous 12 months. In general, a six months supply is considered a balanced market for buyers and sellers. Anything less than six months indicates a seller’s market, while anything more than six months indicates a buyer’s market.
Homes are on the market a little bit longer.
The average home for sale in Houston took 50 days to sell in the third quarter. This is four days longer than the previous year. Statewide, the average home took 53 days to sell in the third quarter.
Home prices still rising.
Despite what the Houston Business Journal described as an “oil slump,” home prices in Houston continue to move upward. The median price of a Houston home in the third quarter was $225,000, up 4.7 percent year over year. Statewide, the median home price rose 7 percent year over year to $214,000.
Majority of homes that are selling are priced below $500,000.
More than 90 percent of Houston homes sold in the third quarter were priced below $500,000. Roughly 41 percent of homes were sold for less than $199,999 and about 50 percent of homes were sold between $200,000 and $499,999. Houston homes that were priced above $500,000 only made up 9 percent of homes sold in the third quarter.
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