Houston home sales enjoyed another positive month in 2018, and after three months of declines, stability returned to the luxury market. Inventory levels did decline slightly in February, which will offer less options to home buyers. However, it could help bring higher prices into the Spring for home sellers.
According to the latest report from the Houston Association of Realtors (HAR), single-family home sales for the full year rose 5.3 percent compared to February 2017. Homes priced between $500,000 and $750,000 experienced the strongest sales activity.
The single-family home median price rose 1.4 percent to $226,200 – the highest median ever for a February. The average price rose very so slightly to $281,945, a 0.4 percent gain.
According to the Houston Association of Realtors, the 33,939 active listings in January 2018 represented a 2.2 percent drop from February 2017. A lot of homes went pending in February. Pending sales rose to 6,912, a 11.1 percent increase from February 2017, and total home sales rose 3.1 percent to 6,375.
Days on Market (DOM), or the number of days it took the average home to sell, decreased slightly from 67 to 65 days.
Inventory fell from a 3.4-months supply to a 3.2-months supply year-over-year, its lowest level since December 2017.
All-in-all, we are off to a good start in 2018. The market is relatively balanced between buyers and sellers. However, falling inventories could tip the scales in favor of sellers. That being said, we will see a seasonal increase in supply in the Spring, which could help to bring balance and provide more options to home buyers.
