GROWING HOUSING INVENTORY PROVIDES A BOOST TO THE HOUSTON HOUSING MARKET IN MAY
Houston housing data for May 2016 showed significant improvement in overall home sales, increasing by 10 percent as compared to May 2015. Growing inventory, including that from new home builders, has played a part in this boost in the Houston housing market.
Home Sale Stats
In May 2016, home buying was concentrated in mid-range homes priced between $150,000 and $500,000. Homes outside of this price range actually decreased in sales. The average and median price of single-family homes, however, remained about the same as May 2015.
The Houston Association of Realtors reports 7,343 homes were sold in May of 2016 which is a significant increase from the 6,678 homes sold in May of 2015. Inventory levels were also strengthened by new listings - lengthening the supply of homes on the market from 3 months to 3.6 months. While Houston lags behind the housing inventory in the United States which currently stands at 4.7 months, this increase is still positive news for Houston.
The total property sales for all property types increased by 7.1 percent, from 8,123 in May of 2015 to 8,703 in May of 2016.
Month-end pending sales for single-family homes increased by 14.6 percent, from 7,167 to 8,286, which makes it likely that once June sales are tallied, the numbers will continue to look very positive.
All signs point to market conditions that are normalizing in Houston as a result of the new inventory of homes.
Interesting enough, townhome sales remained exactly the same with 621 sold in both May of 2015 and 2016. The average price declined by 2.6 percent, but the median price increased by 7.6 percent. Inventory expanded significantly, however, from a 2.6 month supply to 3.4 months.
Single-family home rentals increased 4.1 percent and townhomes jumped by 10.7 percent.
The average rental rates remained the same - $1,866 for single family homes and $1,666 for townhomes and condominiums.
A Stabilizing Market
The increase in supply has made it possible for prices to stabilize, for inventory to expand, and for sales to increase. This is all good news for the Houston real estate market, and experts expect this trend to continue through the summer months.