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November 19, 2013
Houston-area realtors sold 87,346 homes in the 12 months ending October ’13, a 21.1 percent increase over the 72,133 homes sold in the 12 months ending October ’12, according to data released today by the Houston Association of REALTORS® (HAR). Total sales volume exceeded $20.6 billion in the 12 months ending October ’13, a 33.9 percent increase over the $15.4 billion recorded in the 12 months ending October ’12. This is the highest 12-month sales volume on record.
October represents the 29th consecutive month of sales growth. The average price of a single-family home rose 7.9 percent year-over-year to $239,773. The median price of a single-family home—the price at which half the homes sold for more and half for less—rose 8.9 percent to $177,500. This marks the highest median and average prices for an October in Houston.
“Home sales have shown no sign of letting up, which illustrates the strength of the Houston economy and its continued job growth,” said HAR Chairman Danny Frank with Coldwell Banker, United REALTORS®.
Local inventory stood at 3.1 month supply, down from 4.4 in October last year and lower than the national inventory of 5.0 months. The market is considered evenly balanced between supply and demand when it has a six-month inventory.
Summary for Month of October – ’12 vs. ’13
Total dollar volume
Total active listings
Total pending sales
Source: Houston Association of REALTORS®
* The number of months it will take to deplete current active inventory based on the prior 12 months of sales activity.
All housing segments saw gains except for those priced below $80,000. Broken out by housing segment, October sales performed as follows:
§ Less than $80,000 — decreased 28.6 percent
§ $80,000 - $149,999 — increased 7.1 percent
§ $150,000 - $249,999 — increased 26.1 percent
§ $250,000 - $499,999 — increased 23.6 percent
§ $500,000 - $1 million and above — increased 21.3 percent
Rentals of single-family homes increased 9.4 percent compared to October ’12; townhouse and condominium rentals rose 3.2 percent. The average rent for a single-family home rose 5.4 percent to $1,647 in October while the average rent for townhouses and condominiums rose 5.2 percent to $1,463.
Foreclosure property sales reported in the HAR Multiple Listing Service (MLS) fell 46.9 percent compared to October ’12. Foreclosures currently make up 7.5 percent of all property sales, down from 19.6 percent at the beginning of the year. The median price of foreclosures edged up 0.9 percent to $85,706. Foreclosure sales no longer have an impact on the market.
What will 2014 Look Like?
GHP is hosting its Economic Outlook Event Tuesday, December 3, at the Hilton Americas. This year’s event features a panel of experts discussing Houston economic trends. The panelists include:
· Robert C. Robbins, M.D., President and CEO, Texas Medical Center
· Martin “Marty” Collins, President, Gulf States Toyota
· Mark A. Cover, Senior Managing Director and CEO, Southwest Region, Hines
· Bobby Tudor, Chairman and CEO, Tudor Pickering Holt & Co. LLC
Shern-Min Chow, Anchor for KHOU-TV, will moderate the panel discussion.
John E. Silvia, Chief Economist, Wells Fargo, will be the luncheon keynote speaker. He will provide the U.S. economic outlook. Patrick Jankowski, GHP Vice President of Research, will present the 2014 Houston employment forecast.
Full-day tickets include the panel discussion, GHP’s forecast, luncheon, keynote speech, and a copy of Houston Economic Highlights, A 60-page compendium of insights into changes that have occurred in Houston’s economy over the past decade.
To see the 2013 Forecast, click here.
To see the 2013 Houston Economic Highlights, click here.
For more information on the event, please click here.
Prepared by Greater Houston Partnership Research Department