Houston Housing Market’s Supply May Be Catching up with Demand
by Olivia Pulsinelli
Jul 16, 2013, 1:34pm CDT
While home sales continued to increase and prices reached new highs in June, the Houston housing market’s supply stopped shrinking for the first time in months, the Houston Association of Realtors reported Tuesday.
Single-family home sales increased 13.4 percent year over year to 7,220 in June, the Houston area’s 25th-consecutive month of positive sales. Down only slightly from 7,794 in May, June’s total is the second-largest one-month sales volume of the year and the third-largest of all time.
Sales of all property types totaled 8,614, up 14.5 percent from last year and the second-largest one-month volume of the year.
Meanwhile, supply leveled off for the first time since February. The inventory for single-family homes held steady at 3.3 months, a 13-year low it hit in May. That’s still down 38.9 percent from the 5.5-month level recorded in June 2012.
“The fact that inventory has leveled off month-over-month suggests that we may finally be starting to see enough homes listed for sale to keep up with demand,” said HAR Chairman Danny Frank, in a statement.
Both the median price and the average price for single-family homes hit new all-time highs yet again. The median price increased 12.9 percent year over year to $192,000, and the average price hit $268,085, up 13.8 percent from June 2012.
The total dollar volume for all properties sold last month shot up 28.5 percent year over year to $2.18 billion, and all price segments experienced an increase in sales except for homes priced less than $80,000. That segment decreased 40 percent from June 2012.
Other forward-looking indicators continued to follow their recent trends, with total active listings down 23 percent and total pending sales up 8 percent compared to the same time last year.
Olivia Pulsinelli is the web producer for the Houston Business Journal’s award-winning website.
So what does this mean for you? It means that if you are considering selling your current home, then NOW IS THE TIME. As more inventory comes on the market, then your property will have more competition. This will put on the breaks for the large price increases that we are currently seeing. If you are a buyer, then it means that you will have more choices, but prices will still continue to rise, just mostly likely not as fast.