Low mortgage interest rates and a growing selection of housing options helped to drive a positive real estate market in May. According to the Houston Association of Realtor’s monthly report, the luxury segment (homes priced at $750,000 and above) led the way in sales volume.
Prices of single-family homes reached record highs for May. The median price rose 2.4 percent to $249,993 and the average price was up 5.8 percent at $323,023.
According to HAR, total active listings, or the total number of available properties, went up 10.1 percent to 43,624. May sales of all property types totaled 9,948, up 3.1% compared to the same month last year. As a result, the absorption rate for May 2019 increased slightly to 23% versus the 22% rate we saw in April.
Days on Market (DOM), or the number of days it took the average home to sell, was up slightly to 53 days, which is way down from February’s 68 days. Inventory grew to a 4.2-months supply. That is up from 3.9 months a year earlier. It is in line with a national inventory of 3.9 months reported by NAR.
Although the market still remains relatively balanced, falling interest rates and increasing housing options have created a nice market for buyers. With the recent news that the Federal Reserve has been considering lowering their target interest rate, mortgage rates have continued to fall. These lower interest rates should continue to help keep demand in line with the increased supply.