Even though homes’ availability in the greater Houston area continues to decline, homebuyers were out in force in January, buying up properties that were still on the market and maintaining the year’s breakneck rate. During the first month of the new year, the luxury housing segment saw the most activity, but homebuyers also drove brisk sales in the mid-range housing segment.
According to the most recent Houston Association of Realtors (HAR) Market Update, 6,088 single-family homes sold in January, up from 4,769 the previous month. This represented a 27.7% raise and the eighth consecutive month of positive sales.
In January 2020, the price of a home worth $750,000 or more rose by 73.9 percent. The $500,000 to $750,000 housing category was next, with a 70.4 percent year-over-year rise. The market’s most common price range, $250,000 to $500,000, saw a 61.9 percent increase in sales. The average price of a single-family home increased 12.5 percent to $326,063 in January, while the median price increased 12.1 percent to $263,500, also a January record.
All property forms sold for a total of 7,519 units, up 27.5 percent from January 2020. For the month, the total dollar amount increased by 42.8 percent to $2.3 billion.
Houston Real Estate Leasing Property Update
The Houston lease market had a slow start to the year. Single-family home leases dropped 18.4% year over year, while townhome and condominium leases fell 6.3 percent. Single-family homes saw a 6.0 percent rise in rent to $1,889, while townhomes and condominiums saw a 0.9 percent increase to $1,607.
Houston Real Estate January Monthly Comparison
Consumers continued to take advantage of historically low interest rates even as their choices across available homes narrowed to the most restricted levels in Houston real estate history in January, propelling Houston housing to its eighth consecutive month of positive sales.
As compared to January 2020, single-family home sales, total property sales, and total dollar volume all improved. Pending revenues have risen by 34.5 percent. However, as new listings trickled onto the market, overall active listings – or the total number of available properties – dropped 31.3 percent.
A 13.6 percent decrease in new listings year over year, combined with another strong month of sales, decreased single-family home inventory to 1.8 months, down from 3.3 months a year ago. According to the National Association of Realtors (NAR), housing inventory in the United States is at an all-time low of 1.9 months of availability.
Houston Real Estate Single Family Homes Update
Single-family home sales in the greater Houston area increased by 27.7% in January, with 6,088 units sold than 4,769 a year ago. Strong demand for homes in the upper echelon of the market forced prices up once more. The average price of a single-family home in January set a new peak, rising 12.5 percent to $326,063. The median price also hit a January high of $263,500, up 12.1 percent.
Selling a house took less time than it did a year earlier. The number of days on the market (DOM) decreased from 69 to 48. Inventory reached a new low of 1.8 months availability, compared to 3.3 months a year ago, as fewer new listings entered the market. It’s also only a smidgeon below NAR’s recently announced national inventory level of 1.9 months.
- $1 – $99,999: decreased 32.4 percent
- $100,000 – $149,999: decreased 23.2 percent
- $150,000 – $249,999: increased 11.3 percent
- $250,000 – $499,999: increased 61.9 percent
- $500,000 – $749,999: increased 70.4 percent
- $750,000 and above: increased 73.9 percent
HAR also breaks down current single-family home sales. There were 4,951 existing home sales in January, up 32.2 percent from the same month the previous year. The average sales price increased by 15.2% to $321,430, while the median sales price increased by 15.9% to $255,000.
Houston Real Estate Townhomes & Condominiums Update
In January, sales of townhouses and condominiums increased for the fifth consecutive month, rising 12.5 percent to 458 closed sales from 407 a year ago. The average price increased by 12.4% to $211,188, while the median price increased by 17.0% to $175,500. Inventory fell from 3.8 months to 3.4 months.
Houston Real Estate Market January 2021 Highlights
- Single-family home sales increased for the eighth consecutive month, surging 27.7 percent year-over-year with 6,088 units sold;
- The Days on Market (DOM) figure for single-family homes dropped from 69 to 48;
- Total property sales shot up 27.5 percent with 7,519 units sold;
- Total dollar volume jumped 42.8 percent to $2.3 billion;
- The single-family average price reached a January high, rising 12.5 percent to $326,063;
- The single-family median price climbed 12.1 percent to $263,500 – also a January high;
- Single-family homes months of inventory registered a record low 1.8-months supply, down from 3.3 months before the pandemic and below the national inventory of 1.9 months;
- Townhome/condominium sales rose 12.5 percent with the average price up 12.4 percent to $211,188 and the median price up 17.0 percent to $175,500;
- Single-family home rentals fell 18.4 percent with the average rent up 6.0 percent to $1,889;
- Townhome/condominium leases dropped 6.3 percent with the average rent up 0.9 percent to $1,607.
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