Low mortgage rates, and the threat of rising mortgage rates, continue to bring homebuyers into this fast-moving real estate market. April marked another boom month for the Houston real estate market and it isn’t all just changing work life and a withering global pandemic. Houston’s economy is booming too. According to Penske, one of the country’s largest truck rental companies, Houston was the top moving destination in the country over the past 12 months. Houston also has one of the fastest-growing tech sectors in the country as well. All of this net migration has been a boon for Houston.
According to the latest report from the Houston Association of Realtors (HAR), 9,105 single-family homes sold in April compared to 6,175 a year earlier for a 24.4 percent increase. That represents the biggest one-month year-over-year sales volume increase of all time and the market’s eleventh consecutive positive month of sales. However, in April 2020’s defense, the global pandemic had just gotten started the month before.
Homes priced over $750,000 led the way in sales volume in April with an unbelievable 164.3 percent year-over-year surge. That was followed by homes priced between $500,000 to $750,000, which rose 132.2 percent.
As the luxury and high-end homes leading the charge, home prices rose to record levels. The average price for single-family homes increased 20 percent to $371,854. The median home price increased 17.6 percent to $295,000.
According to HAR, total active listings, or the total number of available properties, fell 42.9 percent to 22,794. April sales of all property types totaled 11,348, up 58.3% compared to April of last year. As a result, the absorption rate for April 2021 was an astonishing 50%! That means half of all homes listed went under contract in April. That is almost double the highest mark we have seen over the past 10 years, and there are some pretty strong boom years mixed in over that stretch of time.
Homes moved a little faster in April. Days on Market (DOM), or the number of days it took the average home to sell fell to 40 days in April. Single-family homes inventory remained at just 1.4 months. According to HAR, that is the lowest inventory level of all time! For prospective sellers, that is good news.
There is no denying that this is a great time to be a home seller. Prospective homebuyers are right to be hesitant about purchasing in the current market. However, inflation has started to poke out its head, and if it sticks around, mortgage rates will begin to rise. If you are thinking of purchasing a home in the next couple of years, this could have profound effects on your mortgage payment and the total cost of homeownership over the life of your mortgage. Buying a home right now isn’t for everyone, but do your due diligence. Make sure you have all of the information you need to make an informed decision on when to start house hunting and buying. Contacting a Norhill Realtor can be a good place to start. We can talk you through the current state of the market in the neighborhoods you care about and get you connected with an experienced, professional mortgage broker so you can decide on the timing that works for you.