Houston real estate market improves in August, reports HAR
August saw sales volumes increase across the metro area, according to new data from the Houston Association of Realtors.
Over the past year, Houston has experienced a long 13-month period of sales improvement that ended suddenly in July 2021 after June records. But now the July crisis appears to have been an anomaly. August saw growth not only in sales but also in on-hand inventory, which had been rocked by supply chain issues resulting from the ongoing pandemic.
To compare the details of single-family home sales in August 2021 with August 2020, see the table below.
On average, prices for single-family homes climbed 14% to $ 380,233, while the median price reached $ 310,000: an increase of 15.2%. Broken down into segments by price, homes $ 500,000 to $ 750,000 made up the bulk of Houston’s sales volume with a whopping 48.5% year-over-year increase. This second highest increase in the segment from $ 250,000 to $ 500,000 with 31.8%. Homes priced at $ 750,000 or more, the luxury segment, saw an increase of 30.5%. However, sales of homes priced under $ 250,000 declined overall.
Sales of all types of properties also increased 9.2% year-on-year, reaching 12,036 total sales. The total dollar volume for August 2021 was $ 4.3 billion: an increase of 26.7%. Of those properties, 8,584 existing homes were sold last month, 14.7% more than last year. The average selling price of these homes also increased 13.2% to $ 375,354, while median sales rose 16.9% to $ 304,000.
Notably, the days in the market were nearly halved: from 51 to 26, year over year. Meanwhile, inventory stands at a 1.9 month supply, compared to the 2.6 month supply that was available in August 2020. Yet this level is the highest ever seen in Houston in 2021. – although it is much lower than the current national inventory. of 2.6 months, as reported by NAR.
Commenting on the conclusions of August, HAR President, Richard Miranda said the Houston market appears to be softening. This is to be expected at the end of the summer as inventory levels remain low. “We’re also hearing anecdotally that there aren’t as many competitive offers on property listings as we saw earlier this year, which drove prices into record territory in June,” did he declare.