Did you think real estate sales would be down all summer? Think again! HAR reported that sales in June 2020 exceeded those in June 2019. Whoa, right? If you’re curious about how on Earth June sales could be higher this year than last year, we’ve got the details.
One of the biggest reasons sales spiked was because of the high number of homes going under contract in May. Once Houston’s COVID-19 stay-at-home orders were lifted, these sales were finalized as soon as possible. 9,328 single-family homes sold in June compared to 8,063 last year, a 15.7% jump!
Homes listed between $250,000 and $500,000 saw the most sales, increasing 28.3% year-over-year. Even homes in the $500,000 – $750,000 range saw a 18.6% jump year-over-year. If you believe home prices must have tanked to achieve these incredible numbers, we’ve got one word for you: nope! The average price of a home dipped less than one percent, and the median price of a home increased 3.6% to an unprecedented $262,000. The number of leases of single-family homes increased, too. These sales actually put year-to-date sales on par with 2019, which broke real estate records. Who could have imagined this positive trend would continue during COVID-19?
“Coronavirus has driven the Houston housing market into uncharted territory; however, we do know for certain that consumers have shown unwavering interest in real estate since the pandemic began,” said HAR Chairman John Nugent with RE/MAX Space Center. He went on to explain that early introductions of innovative virtual tours and open houses enabled consumers to resume their home searches while keeping safe at home. These tours are professional and highly-detailed, and many allow for a 360-degree view that makes you feel like you’re in the house. Historically low interest rates have also helped to maintain buyers’ enthusiasm about purchasing a home during COVID-19.
Pending sales soared 39.3% in June, indicating a probable increase in sales for the month of July, as well. Housing supply in Houston currently stands at 3.2 months. For comparison, the housing inventory across the United States typically stands at a 4.8-months’ supply.
In all likelihood, real estate will slow down in the fall due to continued coronavirus concerns and normal market trends. However, this unexpected return to normalcy for real estate is a welcome one! Due to low interest rates and the adaptation of virtual tours, it remains a good time to buy a home, even despite the coronavirus. However, remember: the housing supply is shrinking, so if you’re considering a move, sooner may be better if you’d like many options. Contact Circa Real Estate today if you’d like to chit-chat about buying a home this summer!