HOUSTON TREND WATCH: IS THE MARKET RISING OR FALLING?
Recent housing market forecasts for the Houston, Texas area predict that home prices will continue rising in 2019 as they did in 2018, but possibly at a slower pace.
Given the current supply-and-demand situation in the Houston real estate market, it would not be surprising to see the median home value rise between 4% and 6% between now and January 2020.
Like many major cities in the U.S., Houston’s housing market has suffered from depressed inventory levels over the past few years. There just weren’t enough homes on the market to meet the demand from buyers. This is partly why prices have risen so much over the past few years.
But that’s beginning to change.
According to the Houston Association of REALTORS®, single-family homes were up to a 3.7-month supply as of January 2019. That’s an increase from the 3.2 months of supply recorded a year earlier. Condo and townhomes were even more plentiful, with a 4-month supply measured in January.
As we’ve seen, some forecasts for the Houston housing market predict smaller home-price gains over the next year or so. And inventory has a lot to do with that. In this scenario, inventory growth would help to create a better balance between supply and demand — and likely lead to smaller price growth down the road.
Thankfully, all major metrics monitored by the Houston Association of Realtors increased in May 2019, indicating both supply and demand continue to grow.
Sales of single-family homes increased 2.8 percent year over year to 8,346 in May, while total property sales totaled 9,948, a 3.1 percent increase. This is the fourth straight month that the market has been in positive territory, HAR notes in its latest press release.
Sales increased in all segments of homes priced at or above $150,000. The largest increase was in the luxury market, homes priced at or above $750,000 which saw sales skyrocket 17.6 percent.
Thus, both the average and median sales price for a single-family home hit record highs for a May in Houston. The average price jumped 5.8 percent to $323,023, while the median was $249,993, up 2.4 percent. Total dollar volume climbed 7.8 percent to more than $3 billion.
Only time will tell if the Houston market will truly continue to rise or have a roller coaster ride of ups and downs for the last six months of the year.
How do you think the market will go for the rest of the year? Tell us your thoughts on the comment section below!
About the writer: Shaura Cuyan writes about all the hottest Real Estate trends and predictions for Summit VA Solutions! She has previously written for a number of freelancing gigs and writes her own blog on lifestyle and current issues. She is a Graduate of Bachelor of Arts in Communication, taking up her Masters in Development Communication.