The Houston residential real estate market continued its stable growth in April. Demand for housing continues to increase and push pricing higher across the market. The pace of sales in moderate and luxury priced housing continues to lead the way. Overall, the residential market continues to demonstrate healthy and sustainable growth.
According to the April 2017 Houston MLS Report released on May 10, 2017
- April 2017 had a total of 6,583 sales vs 6,387 in April 2016, an increase of 3.1% year over year.
- The strongest home sales activity took place among homes in the $750,000+ range and in the $250,000 to $499,999 range. Both indicate strength in the demand for housing. For the luxury market, which took the brunt of the hit during the energy slump, April marked the 6th consecutive month of sales gains.
- "The Houston real estate market had another strong showing in April among sales and rental properties alike, and as we had hoped, inventory levels got a healthy boost,” said HAR Chair Cindy Hamann with Heritage Texas Properties. “The latest Texas Workforce Commission employment update states that 13,300 jobs were created throughout greater Houston in March, the most since September 2015, so we remain optimistic about the local economy."
- The median home price in April 2017 was $228,000 vs $218,000 in April 2016, an increase of 4.6%, the highest median price ever for April. The average price climbed 4.7% to a record-high of $291,770.
- Total single-family home inventory increased to 4.0 months’ supply vs 3.6 a year earlier as additional listings were added into the market. The housing inventory for the U.S. currently stands at a 3.8 months’ supply per the National Association of Realtors (NAR). Anything below 6.0 months’ supply is considered a tight market.
Texas Workforce Commission, GHP and Baker Hughes:
- In March 2017, 13,300 new jobs were added to Houston. Total jobs increased 1.0% year over year.
- Houston metro area unemployment decreased in March to 5.7%, down from 5.9% in February 2017.
- Population growth continues to drive job gains in a number of sectors: government (primarily public education), leisure and hospitality and health care. Government added 1,300 jobs in March ’17, leisure and hospitality added 4,200 over the month and health services and private education grew by 1,200 jobs in March. These sectors were supported by the 125,005 residents added to the region in ’16, about one new Houstonian every four minutes.
- The Baker Hughes Oil & Gas Rig Counts increased to 853 in April 2017, up 111% from the bottom of 404 in May 2016, demonstrating sustained growth in the energy market as producers continue to be more cost effective.
Houston is seeing continued steady population growth and increasing job growth. As a result, the local financial and real estate markets stand to benefit. For Texas, McAlister Investment sees moderate job growth in 2017 and accelerated growth in 2018. As a result, the Texas metro single-family residential markets are positioned to thrive from pending population growth, job growth and an increase in first time homebuyers.
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Paul Connor , Hydie McAlister , Jim McAlister, Sr.
Principals, McAlister Investment Real Estate
- Texas Workforce Commission andbakerhughes.com