HOUSTON — (October 13, 2021) — Despite persistently low inventory, buyers kept the Houston real estate market humming once again in September, positioning it for a record finish by the time the books close at midnight on December 31.
According to the Houston Association of REALTORS (HAR) September 2021 Market Update, single-family homes sales rose 1.5 percent versus last September, with 9,226 units sold. That is up from 9,086 sales in September 2020. On a year-to-date basis, local home sales are 15.3 percent ahead of 2020’s record pace and up 21.6 percent when compared to 2019.
Homes priced from $1 million and above – recently redefined by the HAR Multiple Listing Service (MLS) as the luxury market (it was previously defined as $750,000 and above) – led the way in sales with a 34.6 percent year-over-year increase. That was followed by the $500,000 to $1 million segment, which rose 28.3 percent. The $250,000 to $500,000 housing segment came in third place with an increase of 27.4 percent.
The single-family home average price rose 13.4 percent to $372,408 and the median price climbed 13.3 percent to $300,000. Pricing overall has moderated after reaching record highs in June.
Sales of all property types rose 1.6 percent year-over-year, totaling 11,285. Total dollar volume for September increased 16.9 percent to $4.0 billion.
“The Houston housing market continues to show strength as we enter the fall season, which is traditionally the time of year the market slows,” said HAR Chairman Richard Miranda with Keller Williams Platinum. “We are on track for another record year of sales, however higher home prices and the potential of rising interest rates could impact buyer demand in the coming months.”
Lease Property Update
Houston’s lease market slowed in September and rents rose. Single-family lease homes fell 8.2 percent year-over-year. Leases of townhomes and condominiums declined 1.8 percent. The average rent for single-family homes rose 9.0 percent to $2,115 while the average rent for townhomes and condominiums increased 6.3 percent to $1,793.
September Monthly Market Comparison
The Houston real estate market held to positive territory for a second straight month in September with mostly healthy readings across the board. Pending sales increased 11.1 percent. However, total active listings — or the total number of available properties —remains down 12.0 percent compared to the same time last year as buying remained strong.
Single-family homes inventory reached a 1.8-months supply. While that is down from 2.4 months last September, that is the biggest supply of homes the market has had in 2021 and was buoyed by a 1.3 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
Single-family home sales rose 1.5 percent in September with 9,226 units sold across the greater Houston area compared to 9,086 a year earlier. Strong sales volume among homes at the high end of the market pushed up pricing, however it remained below the record prices set in June. The single-family home average price climbed 13.4 percent to $372,408 while the median price rose 13.3 percent to $300,000.
The time it took to sell a home fell by about three weeks compared to September 2020. Days on Market (DOM) went from 51 to 29. Due to strong buyer demand and steady home sales, inventory registered a 1.8-months supply compared to 2.4 months a year earlier. That level is the highest of 2021, but below the current national inventory of 2.6 months recently reported by NAR.
Broken out by housing segment, September sales performed as follows:
$1 - $99,999: decreased 32.3 percent
$100,000 - $149,999: decreased 36.9 percent
$150,000 - $249,999: decreased 31.7 percent
$250,000 - $499,999: increased 27.4 percent
$500,000 - $999,999: increased 28.3 percent
$1M and above: increased 34.6 percent
HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 7,948 in September. That is up 8.7 percent from the same month last year. The average sales price rose 12.8 percent to $368,253 while the median sales price climbed 15.7 percent to $295,000.
For HAR’s Monthly Activity Snapshot (MAS) of the September 2021 trends, please click HERE to access a downloadable PDF file
Sales of townhouses and condominiums increased for the 13th consecutive month in September, rising 11.7 percent with 727 closed sales versus 651 a year earlier. The average price rose 12.1 percent to $240,994 and the median price climbed 17.6 percent to $210,000. Inventory fell from a 3.9-months supply to 2.4 months.
Houston Real Estate Highlights in September
Single-family home sales staged a second consecutive monthly increase, rising 1.5 percent with units 9,226 sold versus 9,086 in September 2020.
The Days on Market (DOM) figure for single-family homes fell from 51 to 29;
Total property sales increased 1.6 percent with 11,285 units sold;
Total dollar volume rose 16.9 percent to $4.0 billion;
The single-family average price increased 13.4 percent to $372,408;
The single-family median price rose 13.3 percent to $300,000;
Single-family homes months of inventory registered a 1.8-months supply, down from 2.4 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 15.3 percent ahead of 2020’s record pace and 21.6 percent ahead of 2019.
Townhome/condominium sales rose 11.7 percent with the average price up 12.1 percent to $240,994 and the median price up 17.6 percent to $210,000;
Single-family home rentals fell 8.2 percent with the average rent up 9.0 percent to $2,115;
Townhome/condominium leases fell 1.8 percent with the average rent up 6.3 percent to $1,793.