The Houston residential real estate market continues to perform remarkably well. Despite facing headwinds of the oil bust for the last 18 months, the market has prospered and may be poised to increase as oil pricing and rig counts grow. The diversified Houston economy continues to sustain steady demand for housing while facing limited inventories. Higher- priced home sales remained challenged, but the balance of the residential market is strong. The Houston Association of
Realtors reported Houston home sales in June was unchanged year over year.
According to the June 2016 MLS Report released on July 13, 2016:
- "Even though sales overall leveled off compared to last June, volume is up for the year, and we anticipate a sufficient supply of inventory and low interest rates to draw more home buyers into the market in the weeks ahead" said HAR Chairman Mario Arriaga.
- June 2016 had a total of 7,696 sales vs 7,710 in June 2015, statistically unchanged.
- The average home price in June 2016 was $300,178 vs $302,599 in June 2015, a fractional decline of 0.8%.
- Total single-family home inventory increased to 3.7 months' supply vs 3.2 months' supply a year earlier as additional listings were added into the market. This inventory is still extremely tight, and the market continues to remain a 'seller's market. The housing inventory across the U.S. currently stands at a 4.7 months' supply per the
National Association of Realtors (NAR). Anything below 6.0 months' supply is considered a tight market.
The Economy at a Glance:
- Houston area employment was unchanged in May at 2,995,100, the same level at which employment stood in April. The region had a loss of jobs in several sectors but added jobs in several others. The gains offset the losses,
resulting in the zero net job growth of the month.
- Despite the zero net job growth, Houston's long term outlook remains bright, according to the latest report by the Perryman's Group. "The Houston-Woodlands-Sugar Land MSA has stabilized after adjusting to job losses
associated with lower oil prices," the report notes.
- The Perryman forecast also reports that Houston's real gross area product (GAP) will grow at a 3.35% annual rate over the next 25 years. Approximately 1.63 million net new jobs are projected to be gained over the forecast
period, a growth rate average of 1.7%
- Single Family Home permits for the month of May totaled 3,361 according to the Texas A&M Real Estate Center,
a 6.1% increase year over year.
The Houston residential market continues to show strength as the oil market recovers with long term economic and
employment forecasts supporting sustainable growth.
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
McAlister Investment Real Estate
MLS Report: http://www.har.com/content/newsroom
2 Greater Houston Partnership: The Economy at a Glance: http://www.houston.org/economy/archives/