Inventory UP! - Does that mean slower sales?

Dated: 02/13/2019

Views: 145

Houston — (February 13, 2019) — Fresh on the heels of a record-breaking 2018, home sales across greater Houston began the new year at a dramatically slower pace. Sales volume fell in all pricing segments in January, including the luxury home market, which saw its first decline in 12 months. However, rental activity was strong, and inventory levels continued expanding, providing consumers with more choices in the lead-up to the traditionally busy Spring buying season.

According to the latest monthly report from the Houston Association of Realtors® (HAR), 4,100 single-family homes sold in January compared to 4,462 a year earlier. That represents an 8.1 percent decline – the third straight month of falling sales.

The single-family home median price (the figure at which half of the homes sold for more and half sold for less) edged up 1.4 percent to $222,000 and the average price rose 2.4 percent to $277,483. Those are the highest prices ever for a January.

Sales of all property types totaled 5,011, down 8.4 percent from January 2018. Total dollar volume for the month fell 4.4 percent to slightly more than $1.3 billion.

“January appears to have delivered a perfect economic storm of sorts, with some consumers focused on paying off holiday credit card bills, others concerned about the recent bump in mortgage rates and still others that may have felt the squeeze from the partial government shutdown,” said HAR Chair Shannon Cobb Evans with Heritage Texas Properties. “We are encouraged by the strong performance among rental properties, and I believe that as inventory levels continue to grow, more buyers will return to the market.”

Lease Property Update
Consumers that weren’t buying homes were renting properties at volumes not seen since November 2017. January single-family home rentals shot up 16.5 percent while rentals of townhomes and condominiums jumped 16.4 percent. The average rent for single-family homes edged up 0.4 percent to $1,755 and the average rent for townhomes and condominiums dipped 0.8 percent to $1,504.

January Monthly Market Comparison
January indicators for the Houston real estate market were mixed, with single-family home sales, total property sales and total dollar volume all down compared to January 2018. Pricing levels, however, rose to January highs. Month-end pending sales for single-family homes totaled 6,528, a 12.0 percent increase over last year. Total active listings, or the total number of available properties, climbed 16.8 percent to 38,872.

Source: Houston Association of Realtors

Blog author image

Dwight Cook

BRILLIANT Real Estate Team, Technology Driven but Customer Focused. Let's Talk!....

Latest Blog Posts

How good are Interest Rates?

Rates for a 30-year fixed mortgage have hovered around 4% in the past week after hitting a 12-month high near 5% in November. While those tenths of a percentage point will matter to your clients

Read More

Strong Houston, Ranked for Diversity

Wallethub.com has rated the top cities in America. America is undergoing an extreme makeover, thanks to rapid demographic diversification. By 2050, many shifts will happen. For example,

Read More

Flooded Home Protection

Thinking of buying a flooded home? Three-quarters of the 204,000 homes and apartments in Harris County damaged by Hurricane Harvey were outside the 100-year flood plain, so many homeowners were

Read More

The Creepiest Place in Texas

The Travel Channel has named hotel Galvez as the creepiest place in Texas. Known as "Queen of the Gulf," Hotel Galvez in Galveston opened its doors in 1911 and was added to the National

Read More