The Houston-area housing market recorded strong growth in all major metrics in May, including sales, prices and inventory, according to the Houston Association of Realtors.
The number of leases also skyrocketed last month.
Single-family home sales increased 11.5 percent year over year to 8,156 in May, and sales of all property types jumped 12.3 percent to 9,744. The total dollar volume for all properties sold in May soared 17.4 percent to $2.8 billion.
All segments of homes priced above $150,000 recorded year-over-year increases in sales. The largest increase once again was in homes priced from $750,000 and up, with a 27.6 percent jump in that segment’s sales. That marks the seventh straight month of increases in luxury market sales.
As such, the single-family home median price rose 4.4 percent year over year to an all-time high of $235,000, and the average price increased 4.3 percent to $302,362, the second-highest average ever.
Looking ahead, housing market activity likely will remain strong. Total active listings were up 16.4 percent year over year, and single-family pending sales were up 18.2 percent. Single-family inventory increased to a 4.1-month supply in May, the highest level since November 2012. It’s also up from a 4-month supply in April and a 3.6-month supply in May 2016. Months of inventory estimates the number of months it would take to sell all the home listings on the market today based on the pace of sales over the past 12 months. Nationwide, inventory stands at a 4.2-month supply.
Meanwhile, Houston’s rental market also saw huge increases in demand last month. Single-family home leases jumped 31 percent, while townhome/condominium leases skyrocketed 46.2 percent. Rents, however, dropped by 4.2 percent for single-family homes and 6.7 percent for townhomes/condominiums to $1,779 and $1,565, respectively.
The Houston housing market had another strong showing in May with sales and rental properties alike, and inventory continues to accommodate the growing demand. If we can maintain this pace, there’s no doubt that 2017 will be a record year for Houston real estate.Contact An Agent Today