Houston’s summer real estate boom continued into August as home buyers continued to buy at a record-setting pace. According to the Houston Association of Realtors, August 2019 marked the second largest one-month sales volume of all time; the record of 8,930 was set in the previous month.
Single-family home sales in August totaled 8,679, which is up 3.9 percent year-over-year. On a year-to-date basis, home sales are running 3.1 percent ahead of 2018’s record volume. Low mortgage rates, a solid Houston economy, and the steady growth in inventory continue to contribute to the solid sales activity.
Homes in the $250,000 to $500,000 range saw the most activity, up 14.7 percent compared to August 2018. Next were homes in the $500,000 to $750,000 range, which rose 7.0 percent. The luxury segment, which encompasses homes priced from $750,000 and up, did not perform as well and saw a 3.0 percent decline.
Median home prices for single-family homes reached an all-time high for August, climbing 4.5 percent to $249,000. The average price also hit a record for August, rising 3.4 percent to $310,409.
According to HAR, total active listings, or the total number of available properties, went up 8.2 percent to 45,062. August sales of all property types totaled 10,375, up 4.1% compared to the same month last year. As a result, the absorption rate for August 2019 was only down 1 point from where it was in August of 2018 for all property types.
Days on Market (DOM), or the number of days it took the average home to sell, was 52 compared to 49 a year ago. Inventory expanded to a 4.2-months supply. That is up from 4.0 months year-over-year and is just under the 2019 peak of 4.3 months reached in June and July. It matches the national inventory of 4.2 months reported by NAR.
Although mortgage rates are off their lows for the year, they remain near historic lows. With low rates and a seemingly robust economy, positive demand for Houston real estate may continue into the fall.
As always, keep in mind that real estate is a hyper-local market. In order to get the best advice contact one of our experienced agents. They would be happy to provide you more specific advice based on your budget and neighborhood.