The Houston Association of Realtors (HAR) just released their report on market trends with a look back at activity in the month of May. According to HAR, May marked a 4.3% downward swing in home sales. Homes between 250k and 500k saw sales growth, while homes 150k to 250k were “flat.”
Inventory levels are down by roughly 300 homes from 7,110 a year ago. And while home inventory is down, Months of Inventory (the estimated time it would take to deplete the current active housing inventory based on last 12 months of sales) increased to 3.1 months compared to last years 2.8.
In terms of national figures, the current Months of Inventory for the US is 5.3 months, meaning the Houston market is still struggling to keep up inventory levels. As a homeowner this information would indicate that it is a great time to sell.
If that wasn’t enough, home prices climbed to an all-time high to $292,040, up 4.5% year over year. Let’s break down the sales last month by price range to see where the market is going.
Breakdown of Single Family Home Sales last month:
- $1 – $79,999: decreased 19.4 percent
- $80,000 – $149,999: decreased 27.2 percent
- $150,000 – $249,999: flat
- $250,000 – $499,999: increased 7.6 percent
- $500,000 and above: increased 7.9 percent
Good news for many of our sellers as the upper end of the market still is seeing increased sales activity amidst the overall decline.
Houston Real Estate Milestones in May
- At $292,040, the single-family home average price reached an all-time record high;
- At $223,000, the single-family home median price also achieved an historic high;
- Single-family homes months of inventory edged up to a 3.1-months supply, matching a level last seen in October 2013;
Days on Market for single-family homes was 47 days versus 50 days a year earlier.
That’s it for this Market Update – Check in with us next month and we’ll take a closer look at how the market responded in June.