News

News Flash - Houston Real Estate Market

February 2016

We are happy to report continued resilient news about the Houston residential real estate market. Strong job growth over the past five years has buoyed the Houston economy during the slowdown in the oil & gas sector and led to continued demand for housing and constrained inventories. While the higher-priced end of home sales dragged, the balance of the market remained strong. The Houston Association of Realtors reported Houston home sales decreased 2% from last January's record pace. With near historic-high levels of home sales, listing inventory remains tight.

According to the January 2016 MLS Report released on February 10, 20161:

  1. “The most noticeable impact has been declines in the luxury market, but mid-range housing actually saw a healthy sales volume in January...” said HAR Chairman Mario Arriaga

  2. January 2016 had a total of 4,024 sales vs 4,109 in January 2015.

  3. The average home price in January reached $262,663, an all-time high for January sales.

  4. Single-family home inventory increased to 3.3 months' supply vs 2.5 months’ supply a year earlier as additional inventory was added. Anything below 6.0 months' supply is considered a tight market.

 

The Economy at a Glance2 :

  • Facing the headwinds of the oil and gas market reduced the 5 year streak of robust job growth. However, Houston was able to add 23,200 new jobs as the balance of Houston’s diversified job market continues to grow.
  • Houston ended 2015 with 3,015,800 payroll jobs, a record for Houston metro area.
  • The Houston metro area finished 2015 with a 4.6% unemployment rate. This is slightly above Texas’s 4.2% but still well below the nation’s 5.6% unemployment rate.
  • Per the Greater Houston Partnership, Houston should add 21,900 new jobs despite the slowdown in oil & gas.

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    As the oil & gas industry stabilizes and returns, Houston will be well positioned to experience robust growth. Should you have any questions, please feel free to contact our office at (713) 535-2250.

    Paul Connor
    McAlister Investment Real Estate

    1. MLS Report: http://www.har.com/content/newsroom
    2. Greater Houston Partnership: The Economy at a Glance: http://www.houston.org/economy/archives/