Even after mild temperatures returned, the deadly and destructive winter storm that left many Houston-area homes without power and water did nothing to cool local real estate in February. Although the unusual weather event forced some closings to be postponed due to plumbing problems and property damage, single-family home sales increased for the ninth month in a row. Despite an ever-shrinking supply of homes and the first rise in mortgage rates since last summer – all against the backdrop of the coronavirus pandemic – the increase was accomplished.
According to the most recent Houston Association of Realtors (HAR) Market Update, 6,049 single-family homes were sold in February, up from 5,979 the previous month. This equates to a rise of 1.2 percent. Luxury housing was once again the best-performing category among homebuyers.
As opposed to February 2020, homes valued at $750,000 and up increased by 64.9 percent. The $500,000 to $750,000 housing category was next, with a 55.3 percent year-over-year increase. The average price of a single-family home increased 16.2 percent to $349,963, while the median price increased 12.6 percent to $275,900, setting new highs.
All property forms sold for a total of 7,464 units, up 1.9 percent from February 2020. For the month, the total dollar volume increased 17.3 percent to $2.4 billion. Last week, the 30-year fixed-rate mortgage surpassed 3% for the first time in seven months. The 30-year fixed-rate average rose to 3.02 percent, according to Freddie Mac. A week ago, it was 2.97 percent, and a year ago, it was 3.29 percent. In July of 2020, it was above 3% for the first time.
Houston Real Estate Market Leasing Property Update
In February, consumers showed more interest in for-sale homes than in for-lease properties. Single-family home leases dropped 26.1 percent year over year, while townhome and condominium leases fell 15.7 percent. The average rent for single-family homes increased 8.7% to $1,924, while it increased 1.9 percent to $1,637 for townhomes and condominiums.
Houston Real Estate Monthly Comparison
Despite a damaging and devastating winter storm, low inventory, and the ongoing coronavirus pandemic, the Houston real estate market posted its ninth consecutive month of sales gains in February.
The monthly sales figures were primarily positive. As compared to February 2020, single-family home sales, total property sales, and total dollar volume all increased. Pending revenues rose by 11.6%. However, as fewer new listings entered the market, overall active listings – or the total number of available properties – dropped 37.9%.
Single-family home inventory dropped to 1.6 months supply from 3.3 months a year ago, thanks to a 27.8% year-over-year decrease in new listings and another strong month of sales. That is the all-time low inventory number. According to the National Association of Realtors, housing inventory in the United States is at an all-time low, with just 1.9 months of availability (NAR).
Houston Real Estate Single Family Homes Update
In February, single-family home sales increased by 1.2 percent in the greater Houston area, with 6,049 units sold than 5,979 a year ago. Strong demand for homes in the upper echelon of the market drove prices to new levels. A single-family home’s average price increased 16.2% to $349,963, while the median price increased 12.6 percent to $275,900.
Selling a house took less time than it did a year earlier. The number of days on the market (DOM) decreased from 68 to 48. Inventory hit a new low of 1.6 months availability, compared to 3.3 months a year ago, as fewer new listings entered the market. That number is marginally lower than NAR’s recently announced national inventory amount of 1.9 months.
- $1 – $99,999: decreased 40.6 percent
- $100,000 – $149,999: decreased 42.8 percent
- $150,000 – $249,999: decreased 16.8 percent
- $250,000 – $499,999: increased 16.0 percent
- $500,000 – $749,999: increased 55.3 percent
- $750,000 and above: increased 64.9 percent
HAR also breaks down current single-family home sales. In February, 4,786 existing homes were sold, up 3.0% from the same month the previous year. The median sales price increased 17.4 percent to $270,000, while the average sales price increased 21.6 percent to $348,703.
Houston Real Estate Townhomes & Condominiums Update
In February, sales of townhouses and condominiums increased for the sixth consecutive month, increasing 4.1 percent to 488 closed sales from 469 a year ago. The median price increased 1.0 percent to $178,700, while the average price increased 1.4 percent to $219,326. Inventory fell from 3.9 months to 3.2 months.
Houston Real Estate Market February 2021 Highlights
- Single-family home sales increased for the ninth consecutive month, up 1.2 percent year-over-year with 6,049 units sold;
- The Days on Market (DOM) figure for single-family homes dropped from 68 to 48;
- Total property sales rose 1.9 percent with 7,464 units sold;
- Total dollar volume jumped 17.3 percent to $2.4 billion;
- The single-family average price reached a record high, rising 16.2 percent to $349,963;
- The single-family median price climbed 12.6 percent to $275,900 – also a record high;
- Single-family homes months of inventory registered an historic low 1.6-months supply, down from 3.3 months before the pandemic and below the national inventory of 1.9 months;
- Townhome/condominium sales rose 4.1 percent with the average price up 1.4 percent to $219,326 and the median price up 1.0 percent to $178,700;
- Single-family home rentals fell 26.1 percent with the average rent up 8.7 percent to $1,924;
- Townhome/condominium leases dropped 15.7 percent with the average rent up 1.9 percent to $1,637.
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