After June’s impressive month in real estate, we couldn’t wait to see how July would fare. Normally the summer months are busy as families rush to buy and sell before the new school year begins, but coronavirus has left many markets feeling unpredictable. However, sales in July crushed record territory!
According to the Houston Association of Realtors (HAR), 10,975 single-family homes sold in July compared to 8,921 in July 2019. This 23% increase broke records and marked the very first time one-month sales surpassed 10,000 single-family homes. Sales of homes in the $500,000 to $750,000 range saw the highest percentage increase at 51.9%. Even sales of luxury homes priced over $750,000 increased significantly at 41.7%.
Sales of all property types rose to another record high, up 25% since last July. In terms of total dollar value, get ready for this: homes sold in July 2020 valued a staggering $4.1 billion, up over a third from last year. After facing declining numbers in June, townhouse and condo sales stabilized, registering just one sale short of July 2019’s numbers. Overall, July was a very good month.
However, not all the news from the latest HAR report was good. “We do not consider the current pace of home sales sustainable given the shrinking supply of homes, and expect business to taper a bit this fall,” said HAR Chairman John Nugent. He went on to explain that while this is a fantastic time to purchase a home due to historically low interest rates, it’s difficult to buy a home when there just isn’t much inventory to explore. With fewer options to readily choose from and increasing prices, prospective buyers may choose to wait to purchase a home rather than vie with each other for what’s currently available on the market.
A smaller inventory paired with high demand does usually put sellers in a uniquely beneficial sales position, though. In fact, the median price of a home shot up 8.7% to $271,830. If you’re considering a move within the next couple years, now may be a good time to discuss the market with an agent.