The Houston economy has slowed down in recent months, compared to the unprecedented job market boom we have been experiencing over the last several years. However, the housing market has proved resilient, according to a recent report from the Houston Association of Realtors. In the month of April, 6,310 sales of single-family homes closed, with a median price of $217,000, up 3.3% from the same period last year.
Some areas with high concentrations of oil and gas workers have seen a softer market, but many areas of town have noticed no slowdown at all. The Heights has fared better than most parts of the city, which is typical for the in-demand neighborhood. Supply of available homes has increased as employment growth weakens, unfortunately due in part to oil and gas sector employees losing their jobs.
The market was strongest in April in the mid-price market, homes from $150,000-$250,000. This sector of the market saw a sales increase of 7.8%. Things aren’t looking quite as promising for the higher-end housing market, with sales in the $500,000+ price range falling 15.7% as more buyers buy conservatively.
For the past few years, it’s been a seller’s market in Houston, but things are slowly shifting the other way now in favor of buyers as inventory increases and sellers must be more competitive. In April there were 21,998 single family homes listed for sale, an increase of 21% from last April. The average home remained on the market for 55 days, which is better than March’s average of 58 days on the market, but up from 51 in April of 2015. As of April, there are 3.6 months supply of inventory homes.
While the market is not quite as booming as it was, it’s still doing great and returning to more sustainable levels of growth that can be maintained for the long term. Houston’s economy is doing fantastic in comparison to other major cities throughout the US, and we have a lot to be thankful for here in the Space City.
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