The Houston residential real estate market continued to rise in July. Demand for housing continues to increase and push pricing higher across the market. Overall, the residential market continues to demonstrate healthy and sustainable growth.
According to the July 2017 Houston MLS Report released on August 09, 2017 :
- July 2017 had a total of 7,440 single family home sales vs 7,083 in July 2016, an increase of 5.0% year over year. On a year-to-date basis, home sales remain 6.8% percent ahead of 2016’s volume.
- The strongest home sales activity took place among homes in the $750,000+ range with an increase of 19.8% followed by homes in the $150,000 to $249,999 range which increased by 7.8%. July marked the ninth straight month of rising sales in the luxury segment, which a year ago was still trying to recover from the effects of the ailing energy industry.
- "Overall, the Houston housing market had a strong July, although we are seeing slower sales in some outlying areas like The Woodlands and Cypress,” said HAR Chair Cindy Hamann. “That is why we always emphasize that real estate is local. The combination of moderating pricing and growing inventory should make conditions even more appealing for prospective home buyers."
- The median home price in July 2017 was $230,000 vs $230,357 in July 2016, a slight decrease of 0.6%, while the average price climbed 2.4% to $299,131.
- Total single-family home inventory increased from 4.0 months a year earlier to 4.5 months’ supply, the highest level since 2012. The housing inventory for the U.S. currently stands at a 4.3 months’ supply per the National Association of Realtors (NAR). Anything below 6.0 months’ supply is considered a tight market.
- July 2017 sales of all property types in Houston totaled 8,821, an increase of 4.5% year over year.
Texas Workforce Commission, GHP, Baker Hughes and Metrostudy:
- In June 2017, 10,700 new jobs were added to Houston. The region is on track to finish the year with net job gains, likely adding more than the 29,700 jobs in the GHP’s original forecast. Houston metro area unemployment increased slightly in June to 5.3%, up from 5.1% in May 2017.
- Professional and Business Services, Leisure and Hospitality, Other services and Manufacturing made up the top four sectors of job growth in June 2017. Professional and Business Services added 7,100 jobs, Leisure and Hospitality added 4,100 jobs, Other services added 2,900 jobs and Manufacturing added 2,000 new jobs to the area in June.
- The Houston Purchasing Managers Index (PMI) registered 51.8 in June, signaling economic expansion in Houston for the ninth consecutive month, according to the latest report from the Institute for Supply Management Houston.
- The Baker Hughes Oil & Gas Rig Counts increased to 953 in July 2017, up 136% from the bottom of 404 in May 2016, demonstrating sustained growth in the energy market as producers continue to be more cost effective.
Houston’s financial and real estate markets continue to benefit from population growth and increasing job growth. The Texas metro single-family residential markets are positioned to flourish from the forecast in population growth, job growth, and an increase in first time homebuyers.
Should you have any questions, please feel free to contact our office at (713) 535-2250. For more information on our
company, please visit our website at
Paul Connor , Hydie McAlister , Jim McAlister, Sr.
Principals, McAlister Investment Real Estate
Vice President, McAlister Investment Real Estate