Sales of single-family homes hit an all-time high in July, exceeding the previous record set last June by 3%. Realtors credit low mortgage interest rates and strong inventory for the strong sales numbers. Summer is always a busy time for the real estate market, but even by summer expectations, it was a very good month! A total of 8,953 homes sold in July, an increase of 11.6% year-over-year.
The $500,000 – $750,000 price range saw the strongest performance, an astounding 22% increase since last July. The $250,000 – $500,000 range did booming business as well, climbing 16.9%. The median price of a single-family home climbed to $250,000, and the average rose to $312,727, an increase of 2.2% over last year.
Says HAR Chair Shannon Cobb Evans of Heritage Texas Properties, “July was a strong month for home sales and rentals across the Houston area. We believe that the Houston real estate market is on track for another record year, and that is directly attributed to a healthy local economy, low mortgage interest rates, and an improving supply of homes.”
Supply is often the constricting factor in the Houston real estate market, which tends to have a considerably lower supply than the national average. July saw a 4.3 months supply, just a hair below the inventory record set in June. Housing inventory has now returned to pre-Harvey norms and offers buyers more options than have been available recently. The average home stayed on the market for 50 days, slightly longer than the 48 days averaged last July. It’s expected that when supply is greater, it will take a little longer for a home to sell, so this wasn’t a surprise.
A total of 697 townhomes sold last month, a tie with the townhome volume record set in June 2018. The median and average prices for a townhome decreased by 1.8% and 5.9%, respectively, as townhome inventory rose from 4.2 months to 4.7 months supply. If you’re in the market for a townhome, now is a fantastic time to buy, thanks to lower prices and increased selection.
Last year was a year of records for the Houston real estate market in terms of both volume and pricing. So far, 2019 is on track to beat those records, and there are still several months to go. We’re excited to see what the rest of 2019 will hold!