Updated with the most current information released from HAR, January 15th, 2015.
The Houston Real Estate Market Ends 2015 With The Second-Highest Sales Volume Of All Time.
This information is sourced from the Houston Association of Realtors MLS Report for December, 2015. We cut out the filler to give you the facts. See the full report here.
- Despite the falling oil prices and resulting layoffs from the oil and gas sector in the fourth quarter, 2015 performed very well. In fact, it was the second-highest closing year of all time, only behind 2014.
- December 2015 saw home sales decline for the third straight month.
- Single family home sales slid to 5,879 versus 6,507 in 2014.
- Slower sales meant higher inventory, bringing average months supply of inventory up from 2.5 to 3.2 months.
- Months of Inventory (MOI) – Assuming no new listings are added to the market, MOI is the amount of time it would take to deplete the supply of all current homes on the market, based on the rate of average sales over the past 12 months.
- The current national MOI average is 5.1.
Across Houston, “homes priced between $150,000 and $500,000 saw flat year-over-year sales, while homes below $150,000 and above $500,000 experienced declines.”
According to HAR Chairman Mario Arriaga with First Group, “the good news is the local economy is vastly more diversified than it was during the oil bust of the 80s and other industries are continuing to hire, so it really is going to come down to consumer confidence.”
Summary – Year-Over-Year totals for the Houston Market.
December 2015 vs. December 2014
Single Family Homes, Year over Year
Single Family Home Sales totaled 5,879 in December, down 9.7 percent from December 2014.
Average price fell 0.6% year-over-year this December.
Broken out by housing segment, December sales performed as follows:
$1-79,999: decreased 25.6%
$80,000-$149,999: decreased 25.5%
$500,000 and above: decreased 17.2%
Sales of townhouses and condominiums dropped 2.9 percent in December.
Total of 536 units sold compared to 552 in December the year prior.
Average price dropped 14.6% to $197,904.
Inventory grew from 2.3 months supply to 2.9.
Lease Property Update
Demand for single family lease homes rose 2.9% in December, while town homes and condominiums dropped 3.6%.
Average rent for a single family home was unchanged at $1,710 while the average rent for town homes and condominiums dropped 3.1% $1,459.
What does it all mean?
- There is no doubt the real estate market is seeing the affects of the oil and gas downturn. The good news for Houston is that other industries have expanded so greatly that a downturn will not impact the entire area as hard as it has before.
- Also good to note, the market experiences a fall slowdown and a springtime rush. We are on the leading edge of a busy season for both buyers and sellers.
- As inventory begins to balance itself, buyers will begin seeing the upper hand in most price points as supply continues to rise.
- For information on local market activity in The Woodlands, head to our Market Research Center.
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Click Here to view the full report as generated by the Houston Association of Realtors.
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