National & Houston Home Market Update

Dated: 12/30/2019

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National & Houston Home Market Update


 

Houston

November marked the fifth consecutive positive month of home sales with continued low mortgage interest rates helping to keep the Houston real estate market on track for a record 2019. Single-family home sales across greater Houston totaled 6,395 in November, according to the latest monthly report from the Houston Association of REALTORS® (HAR). That is up 3.6 percent from one year earlier. On a year-to-date basis, home sales are running 4.1 percent ahead of 2018’s record volume. 

The strongest sales activity took place among homes priced between $250,000 and $500,000, which rose 12.5 percent. Homes in the $500,000 to $750,000 range ranked second place, climbing 5.2 percent. The luxury segment, made up of homes priced from $750,000 and above, fell 9.1 percent.

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Single-family home prices set new November highs. The median price (the figure at which half of the homes sold for more and half sold for less) rose 2.5 percent to $240,900 while the average price edged up 1.1 percent to $297,831. Despite the record prices, pricing increases, in general, have shown moderation as the end of the year draws closer. 

The 30-year fixed mortgage rate averaged 3.68 percent during the week ending December 5, according to figures released by Freddie Mac. Compared to a year ago, mortgage rates were more than a full percentage point lower. During the same week last year, the 30-year fixed-rate mortgage averaged 4.75 percent.

National

New single-family home sales rose 1.3% in November, up 16.9% from a year ago. The 719,000 unit annual rate was a tick off expectations, but the average pace of sales for the past three months hit a post-recession high. The home market continues to be healthy.

Freddie Mac's December forecast sees home sales at 6 million this year, 6.2 million in 2020, and 6.3 million in 2021. Their chief economist adds, "the outlook is bright," thanks to "low mortgage rates and the improving economy."

 Fannie Mae also predicts low rates will continue. While they're not forecasting the rate drop we saw this year, they expect the average fixed-rate mortgage will maintain record low levels.



So what does that mean for you and the value of your home? On average homes in Houston appreciate 10% a year, and more in some neighborhoods. If you are interested, I'll provide you a free market report on your home so you know the value.  I do this all the time as a Realtor, no-obligation just ask.

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Dwight Cook

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

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