The Houston residential real estate market, following a strong August, decreased fractionally. Demand continues to grow in moderately priced housing and demand increased for higher-priced homes as well. The residential market continues to perform well with all-time highs in home pricing and a near record pace of home sales.
According to the September 2016 MLS Report released on October 13, 2016:
- September 2016 had a total of 6,652 sales vs 6,685 in September 2015, a slight decrease of -0.5% year over year. Overall, year-to-date, total home sales are up 1.3% vs the record pace of 2015.
- "With home sales ahead of where they were this time last year – a record sales year – in a market that continues to suffer energy-related job losses, I believe we’re doing well," said HAR Chairman Mario Arriaga with First Group.
- The median home price in September 2016 was $219,990 vs $210,000 in September 2015, an increase of 4.8%, the highest median price ever for September. The average price climbed 2.4% to $277,849, also a record.
- Total single-family home inventory increased to 3.9 months’ supply vs 3.5 a year earlier as additional listings were added into the market. The housing inventory across the U.S. currently stands at a 4.6 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 created 500 jobs in August 2016, according to data from the Texas Workforce Commission. In the 12 months ending August 2016, Houston has created 14,200 jobs. September through December are typically strong months for job growth in Houston, as companies hire additional seasonal help for the holidays.
- Sectors recording notable growth in August were education and health services (+3,600 jobs), trade, transportation and utilities (+3,200 jobs) and mining and logging (+1,200 jobs). The largest losses recorded were in the government (-5,100 jobs) and construction (-2,400 jobs) sectors.
- Houston metro area unemployment was unchanged in August at 5.8%, the same level at which unemployment stood in July 2016.
- The Baker Hughes Oil & Gas Rig Counts increased to 539, up 33% from the bottom of 404 in May 2016, signaling a stabilization in the energy market as producers have become more cost effective.
The increase in rig counts and stabilization in the energy market should stem job losses experienced in the energy market and supports moderate job recovery in Houston starting in 2017. The Houston single-family residential market should continue to grow due to population 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 www.mcalisterinv.com .
Jim McAlister, Sr.