May 2016 was pretty much a repeat of the last 3 to 4 months. Prices remain steady with moderate increases. Although, inventory levels remain relatively low, they have seen a little uptick. The average home price in Houston rose 1.61% to $304,679 — up from $299,920 in 2015. Median home prices jumped 4.17% year-over-year to $200,000, according to data obtained from Houston’s MLS.
Consistent with the trend since the beginning of the year, inventory levels remain fairly low and stable. We have seen a little uptick since the beginning of the year to 4 months of active inventory. However, this is consistent with the Spring in Summer months The Houston market remains low compared to the current 4.7 months supply of homes nationally. Low available home inventory should help buoy prices near term, which is good for those ready to sell.
In the near-term, it appears that oil prices have bottomed out and have risen 84% since January. Oil prices have been the main culprit in helping to slow down the Houston real estate market. If current oil prices hold, it will hopefully help to drive increased activity in home sales. Starting in 2012, Houston experienced a huge boom in home prices, as the economy started to rebound after the Great Recession. The current downturn could have similar effects in the months and years to come.