April was a great month for the Houston real estate market, as increased supply, improving oil pricing and economic growth, and low interest rates all cooperated to bring strong sales numbers. Luxury homes (those priced above $750,000) led sales volume, with homes in the $150,000-250,000 range trailing right behind.
Summer is typically the busiest time for home sales, but the increased sales activity starts ramping up in the Spring and we definitely saw that in April. Sales of single-family homes increased 7.8% compared to April 2018, with 7,586 closings. April was the third month in a row of positive sales growth, and the highest volume of 2019 so far. Year-to-date sales are up by 2.2% compared to the same point last year. Not too shabby, considering 2018 was a year for the record books!
Housing inventory in April was at the highest point seen since September of last year, at 4.0 months supply. The average property remained on market for 57 days, an increase of one day over last year. The median price of a single family home was $245,000, up 2.1% and a record high for a month of April. The average price was $310,676.
According to HAR Chair Shannon Cobb Evans with Heritage Texas Properties, “Consumers have been taking advantage of optimal conditions for homebuying, with low interest rates and a growing supply of properties, and that has powered Houston to a strong springtime performance. The rental market also remains healthy, and we’re relieved to see sales finally turning around among townhomes and condominiums.”
When you zoom out and look at the really big picture, things look even more promising. The total volume of all property sales in the month of April was an astounding $2.7 billion.
Townhomes are plentiful in the Heights and Heights-adjacent areas, and it’s been a rough couple of months for townhome sales. Luckily that all turned around in April, with a break in the last seven months of declines in this category. The average and median price for townhomes both dropped (8.4 and 9%, respectively), and townhome inventory is up to 4.5 months supply. All of this means that if you’re looking to buy a townhome, now is an excellent time to do it.
All in all, it was a great month for real estate, and we’re excited to see how things continue to develop as we get further into the summer moving season. If you’re ready to take the plunge and list your home or buy a new one, give us a call and we’ll help you join the rush of summer closings.