HOUSTON — (September 8, 2021) — After the Houston housing market’s 13-month run of positive sales was abruptly interrupted in July, August saw a return to increased sales volume with inventory levels improving and prices showing signs of moderation while remaining higher than last year. These trends were facilitated by an influx of new listings and strong ongoing buyer demand. July’s sales decline was an anomaly with volume that could not rival the unprecedented surge of closings in July 2020 following COVID-related market disruptions.
According to the Houston Association of Realtors (HAR) August 2021 Market Update, single-family homes sales rose 8.5 percent versus last August, with 9,890 units sold. That is up from 9,118 sales in August 2020. On a year-to-date basis, local home sales are 17.4 percent ahead of 2020’s record pace.
Homes priced from $500,000 to $750,000 held the lion’s share of sales volume with a 48.5 percent year-over-year increase. That was followed by the $250,000 to $500,000 segment, which rose 31.8 percent. The luxury segment, comprised of homes priced at $750,000 and above, saw a 30.5 percent year-over-year jump in sales. The single-family home average price increased 14.0 percent to $380,233 and the median price climbed 15.2 percent to $310,000. Pricing has eased a bit since setting record highs in June.
Sales of all property types rose 9.2 percent year-over-year, totaling 12,036. Total dollar volume for August shot up 26.7 percent to $4.3 billion.
“The Houston housing market is beginning to show signs of easing, which was to be expected with summer behind us, schools back in session and inventory levels still exceptionally low, albeit improving,” said HAR Chairman Richard Miranda with Keller Williams Platinum. “We are also hearing anecdotally that there aren’t quite as many competitive bids on property listings as we observed earlier this year, which drove prices into record territory in June.”
The June ‘Close to Original List Price Ratio’ for single-family homes was the highest ever — 100.3 percent — with a majority of buyers paying above list price for homes on the market. In July, it was 100.2 percent, however in August, it retreated to 99.6 percent, supporting reports that the high-dollar buying trend is cooling.
Lease Property Update
Consumer demand for lease properties was mixed in August while rent prices were up. Single-family lease homes fell 10.2 percent year-over-year. Leases of townhomes and condominiums edged up 1.8 percent. The average rent for single-family homes rose 9.6 percent to $2,153 while the average rent for townhomes and condominiums increased 6.9 percent to $1,765.
August Monthly Market Comparison
The Houston housing market returned to positive territory in August after July ended a 13-month stretch of sales gains due to a surge in pandemic-delayed home closings in July 2020 that outpaced the current market. In August, single-family home sales, total property and total dollar volume all rose. Pending sales increased 8.9 percent. However, total active listings — or the total number of available properties — fell 14.4 percent compared to the same time last year.
Single-family homes inventory reached a 1.9-months supply in August. While that is down from 2.6 months a year earlier, that is the biggest supply of homes the market has had in 2021 and reflects a 10.9 percent increase in new listings. Housing inventory nationally stands at a 2.6-months supply, according to the latest report by the National Association of Realtors (NAR).
Single-Family Homes Update
August single-family home sales quickly rebounded from July’s negative report, climbing 8.5 percent with 9,890 units sold across the greater Houston area compared to 9,118 a year earlier.
The single-family home average price increased 14.0 percent to $380,233 while the median price jumped 15.2 percent to $310,000. Those figures are below record high pricing set in June 2021.
The time it took to sell a home was nearly cut in half versus August 2020. Days on Market (DOM) went from 51 to 26. Inventory registered a 1.9-months supply compared to 2.6 months a year earlier. That level is the highest of 2021, but is below the current national inventory of 2.6 months recently reported by NAR.
Broken out by housing segment, August sales performed as follows:
$1 - $99,999: decreased 32.4 percent
$100,000 - $149,999: decreased 33.5 percent
$150,000 - $249,999: decreased 26.6 percent
$250,000 - $499,999: increased 31.8 percent
$500,000 - $749,999: increased 48.5 percent
$750,000 and above: increased 30.5 percent
HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 8,584 in August. That is up 14.7 percent from the same month last year. The average sales price rose 13.2 percent to $375,354 while the median sales price climbed 16.9 percent to $304,000.
For HAR’s Monthly Activity Snapshot (MAS) of the August 2021 trends, please click HERE to access a downloadable PDF file.
Sales of townhouses and condominiums increased for the twelfth consecutive month in August, jumping 27.1 percent with 807 closed sales versus 635 a year earlier. The average price rose 9.5 percent to $237,473 and the median price climbed 14.3 percent to $200,000. Inventory fell from a 4.0-months supply to 2.5 months.
Houston Real Estate Highlights in August
Single-family home sales rebounded from July’s declines with an 8.5 percent increase, as 9,890 units sold versus 9,118 in August 2020.
The Days on Market (DOM) figure for single-family homes fell from 51 to 26;
Total property sales rose 9.2 percent with 12,036 units sold;
Total dollar volume increased 26.7 percent to $4.3 billion;
The single-family average price increased 14.0 percent to $380,233;
The single-family median price rose 15.2 percent to $310,000;
Single-family homes months of inventory registered a 1.9-months supply, down from 2.6 months year-over-year and below the national inventory of 2.6 months;
On a year-to-date basis, single-family homes sales are running 17.4 percent ahead of 2020’s record pace.
Townhome/condominium sales jumped 27.1 percent with the average price up 9.5 percent to $237,473 and the median price up 14.3 percent to $200,000;
Single-family home rentals fell 10.2 percent with the average rent up 9.6 percent to $2,153;
Townhome/condominium leases rose 1.8 percent with the average rent up 6.9 percent to $1,765.