“Most people quote increases or decreases in the price of houses sold but everything is looking upbeat for 2017,” said Ana Maria Anderson of Houston Home Buyers, “We are seeing more sales, more volume, more inventory, higher sales prices and higher leasing prices. The house buyers and real estate investors can’t ask for much more in a market.”
The Houston Association of Realtors recently reported a 11.5 percent increase in the number of home sales measured from May 2016 to May 2017. The association also reported a 17.4 percent increase of total dollar volume of all properties sold in May 2017.
“Perhaps the most important number, the median sale price of a Houston area home, was up 4.4 percent from a year earlier. That number is $235,000 and it is a new record. And I think that number will be about four percent higher at the end of the year,” stated Ms. Anderson. Real estate professionals use median numbers because they feel it is a more representative number rather than a pure mathematical average – which is often skewed by higher priced homes. Use of a median home price means half the homes sold for less than the median and half sold for more than the median.
In addition to the eye-popping numbers related to price, the volume or number of homes sold also set a new monthly record – 8156 single family home sales in May 2017. This 11.5 percent increase, which was mentioned earlier, is expected to continue throughout 2017.
The real estate market in Houston is large and comprised of “sub-markets.” For example, the sales numbers for luxury homes, homes priced above $750,000 showed a 28 percent increase in May 2017 as compared to May 2016. It was the seventh consecutive month of upward trending sales of the luxury home market.
These real estate facts are certainly very interesting and everybody wants to know why. “Well, I think there are several important factors that contributed to these positive statistics. First, there was an economic slow-down after the oil prices nosedived in January and February 2016. The price dipped below $30 a barrel and I think many people paused their personal and business plans. Now people have more confidence in their economic future. Second, Houston is a growing city and more people arrive here every day. Plus the ‘Days on Market’ for homes on the MLS is at or near a record low. That means the demand is high from home buyers. So when demand for homes exceeds the available supply the result is higher prices,” stated Ms. Anderson.
The expectation is for continued growth in the Houston real estate market. The most basic element, demand, will continue to increase with increases in population.