The Houston residential real estate market surged in November. Demand continues to push pricing higher across the spectrum and the pace of sales in moderately priced housing continues to increase. The robust residential market continues to perform well with all-time highs in home pricing and a near-record pace of home sales.
According to the November 2016 MLS Report released on December 14, 20161:
- November 2016 had a total of 5,706 sales vs 4,651 in November 2015, an increase of 22.7% year over year. Overall, year-to-date, total home sales are up 2.7% vs 2015 and is near all-time highs.
- Homes priced between $150,000 and $500,000 enjoyed continued strong homebuyer demand and sales among luxury homes (priced at $500,000 and above) increased almost 33%.
- "It looks like the Houston real estate market is sprinting toward the 2016 finish line, based on the solid numbers in November’s report,” said HAR Chairman Mario Arriaga. “The market has shown tremendous resilience..., and we are especially encouraged by the strong sales volume that the luxury home segment registered last month."
- The median home price in November 2016 was $222,000 vs $205,000 in November 2015, an increase of 8.3%, the highest median price ever for November. The average price climbed 7.2% to a record of $281,671.
- Total single-family home inventory increased to 3.6 months’ supply vs 3.4 a year earlier as additional listings were added into the market. The housing inventory across 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.
The Economy at a Glance2:
- Houston created 16,100 jobs in November 2016, according to data from the Texas Workforce Commission. In the 12 months ending November 2016, Houston has created 16,100 jobs.
- Sectors recording notable growth in November were trade, transportation and utilities (+6,800 jobs), leisure and hospitality (+4,400 jobs) and government (+2,400 jobs). The largest losses recorded were in the construction (-6,300 jobs) and professional and business services (-1,200 jobs) sectors.
- Houston metro area unemployment decreased in November to 4.9%, down from 5.1% in October 2016.
- The Baker Hughes Oil & Gas Rig Counts increased to 580, up 43% from the bottom of 404 in May 2016, signaling a stabilization in the energy market as producers have become more cost effective.
With the uncertainly of the contentious Presidential election over, the financial and real estate markets have benefitted immediately. For Texas and Houston, the rebounding energy market supports moderate job growth in 2017 and accelerating into 2018. The Texas metro single-family residential markets are poised to prosper from job growth, 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.
Jim McAlister, Sr.