Houston Real Estate Market November 2020 Update

Despite historically low inventory, the start of the holiday season, and the lingering coronavirus pandemic, homes in the greater Houston area continued to sell at a record rate. The combination of a small supply of homes for sale and high demand from homebuyers drove the average price to new highs. Consumer activity increased the most at the high end of the market once again, with mid-range homes selling quickly as well.

According to the most recent Houston Association of Realtors (HAR) Market Update, 7,990 single-family homes were sold in November, up from 6,359 the previous month. That’s a 25.6 percent raise, and it’s the sixth month in a row that sales have increased.

As opposed to November 2019, homes priced at $750,000 and up increased by 88.4 percent. The $500,000 to $750,000 housing category was next, with a 72.2 percent year-over-year increase. The market’s most common price range, $250,000 to $500,000, saw a 50.3 percent increase in sales.

The average price of a single-family home increased 15.0 percent to an all-time high of $341,765, while the median price increased 12.0 percent to $270,000, the second-highest amount ever. Sales are currently 9.0 percent ahead of last year’s record rate.

Houston Real Estate Leasing Property Update

In November, the lease property market in Houston had a poor showing. Single-family home leases dropped 11.1 percent year over year, while townhome and condominium leases fell 4.0 percent. The average rent for single-family homes dropped 5.5 percent to $1,882, while it rose 11.5 percent to $1,674 for townhomes and condominiums.

Houston Real Estate Monthly Comparison

In November, Houston real estate saw its sixth consecutive month of positive sales, fueled by buyers who took advantage of historically low-interest rates to find homes in the city’s most constrained inventory ever.

On a year-to-date basis, the market is 9.0 percent ahead of last year’s all-time high. As compared to November 2019, single-family home sales, total property sales, and total dollar volume all increased. 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 27.0 percent.

The slowing rate of new listings, combined with another strong month of sales volume, reduced single-family home inventory to 2.2 months, down from 3.6 months a year ago. New listings increased by just 1.6 percent in November compared to the same month last year. According to the National Association of REALTORS (NAR), housing inventory is at a 2.5-month supply nationwide.

Houston Real Estate Single Family Homes Update

In November, single-family home sales in the greater Houston area increased by 25.6 percent, with 7,990 units sold than 6,359 a year ago. Year-to-date, sales are 9.0 percent higher than last year’s record level. Strong demand for homes in the upper echelon of the market forced prices up once more. The average price of a single-family home reached a new high of $341,765, up 15.0 percent. The median price increased 12.0% to $270,000, the second-highest amount in history.

The average days on market (DOM), or the number of days it took to sell a home, fell from 59 to 46. With fewer new listings entering the market, inventory is at historically low levels, with a 2.2-month supply compared to 3.6 months a year ago. It’s also less than the 2.5-month national inventory amount recently recorded by NAR.

Broken out by housing segment, November sales performed as follows:
  • $1 – $99,999: decreased 38.5 percent
  • $100,000 – $149,999: decreased 37.0 percent
  • $150,000 – $249,999: increased 7.4 percent
  • $250,000 – $499,999: increased 50.3 percent
  • $500,000 – $749,999: increased 72.2 percent
  • $750,000 and above: increased 88.4 percent

HAR also breaks down current single-family home sales. In November, 6,378 existing home sales were registered, up 27.5 percent from the same month the previous year. The average sales price increased by 20% to $339,607, while the median price increased by 17.4% to $264,250.

Houston Real Estate Townhomes & Condominiums Update

In November, sales of townhouses and condominiums increased for the third month in a row, increasing 23.4 percent to 580 closed sales from 470 the previous month. The median price increased 11.8 percent to $190,000. The average price increased 2.5 percent to $224,130. Inventory fell from 4.4 months to 3.8 months.

Houston Real Estate October 2020 Highlights

• Single-family home sales increased for a sixth consecutive month, surging 25.6 percent year-over-year with 7,990 units sold;
• The Days on Market (DOM) figure for single-family homes dropped from 59 to 46;
• Total property sales shot up 28.1 percent with 9,660 units sold;
• Total dollar volume jumped 43.9 percent to $3.1 billion;
• The single-family average price achieved a record high, rising 15.0 percent to $341,765;
• The single-family median price climbed 12.0 percent to $270,000 – the second highest median price of all time;
• Single-family homes months of inventory registered a 2.2-months supply, down from 3.6 months last November and below the national inventory of 2.5 months;
• Townhome/condominium sales jumped 23.4 percent with the average price up 2.5 percent to $224,130 and the median price up 11.8 percent to $190,000;
• Single-family home rentals fell 11.1 percent with the average rent down 5.5 percent to $1,882;
• Townhome/condominium leases declined 4.0 percent with the average rent up 11.5 percent to $1,674.

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