The Houston real estate market started the new year on a positive note with a strong emphasis on sales at the higher end of the current housing market with a 52.2 percent year-over-year gain. This is a continuation of the progress made at the end of last year. This progress is also continued throughout the $500,000 to $1 million dollar range with an increase of 47.1 percent and the $250,000 to $500,000 range experiencing an increase of 36.1 percent.
Coupled with the rise in sales across all property types is the smaller supply of active listings. According to The Houston Association of Realtors (HAR), the total number of available properties or active listings has stayed at a 14.2 percent deficit as a result of the strong home buying trends that have been observed throughout 2021 and into the start of 2022.
The percentage of single-family home sales rose 7.1 percent in January in comparison to the January previous. In addition, the days on market have dropped from 48 to 39. Although the positives of the sales increase sets a good precedent moving forward, buyers are faced with an increase in sales price that has moved up 18.3 percent in the median price and a 14.7 percent increase in the average price.
Townhouses and Condominiums
According to The Houston Association of Realtors, the sales of townhouses and condominiums increased for the 17th consecutive month, rising 24.7 percent giving owners incentive to sell amidst the high demand for properties in Houston. This is met with the median and average price rising 17.9 and 16.2 percent respectively. This is a record high for a January, but in terms of the overall average, it is still well below the record heights observed in 2021.
With the shortened supply of available properties, some prospective buyers have looked to leasing as a solution in the interim until something that suits their needs becomes available. With this as a viable option for some, the leases of townhomes and condominiums increased by 2.5 percent in January. At the same time, the average single-family rent increased 9.7 percent ($2,070) and the average rent for townhomes and condominiums increased 11.9 percent ($1,801)
Buyers are dealing with a lack of inventory due to the shortage of of local-to-local moves and the increase of new Houstonians from the relocations of companies, families and others wanting to take advantage of what Houston has to offer. On the other hand, sellers are in a fantastic position to get the most (or more) out of their property. Whether you are someone who is looking to find a home that suits you or you are a seller who is looking to take advantage of the market, we are always willing and able to lend a helping hand. Give us a call!
All numbers and percentages are according to HAR.com