News

 

Hello everyone,

The Houston real estate market continued its resiliency, kicking off the year with extremely positive momentum. A recovering economy continue to fuel the demand for housing despite the destruction from Harvey last year. Houston's monthly housing market indicators yielded healthy gains in January, with single-family home sales, total property sales, median pricing and total dollar volume all up compared to January 2017.

According to the January 2018 Houston MLS Report released on February 14, 2018:

 

1. January 2018 had a total of 4,469 single family home sales vs 4,104 in January 2017, an increase of 8.9% year over year. All segments of the housing market enjoyed gains except for homes priced below $150,000 and those priced at $500,000 and above. The strongest sales performance took place among homes in the $250,000 to $500,000 range.
2. Total single-family home inventory for Houston remained unchanged at 3.3 months’ supply. Anything below 6.0 months’ supply is considered a tight market.
3. "The Houston housing market seems to have carried the positive momentum from 2017 into the new year, even with some softening in the high end," said HAR Chair Kenya Burrell-VanWormer with JP Morgan Chase. “We hope to sustain that positive momentum with 28,000 new homes slated for construction this year, according to Metrostudy, as well as healthy gains in employment.”
4. The median home price increased 3.8% in January 2018 to $218,000 vs $210,000 in January 2017, the highest median ever for a January. The average price declined 2.1% to $270,303 due to the softness of high-end sales.
5. January sales of all property types in Houston totaled 5,468, an increase of 8.7% versus the same month last year. Total dollar volume climbed 6.3% to $1.4 billion.

 

Texas Workforce Commission, GHP, Baker Hughes:

 

1. The Houston-The Woodlands-Sugar Land metro area gained 46,000 jobs in 2017, reflecting considerable improvement over 2016 when the region created 18,700 jobs.
2. The Greater Houston Partnership reports that oil prices and the rig count finished the year ahead of where they started and significantly more drilling permits were issued in ’17 than the year before. The region’s ports saw a surge in activity, manufacturing ticked up, inflation remained in check and the metro area experienced modest job growth. Bottom line—the region moved closer to full recovery in ’17.
3. The Houston Purchasing Managers Index (PMI), a short-term leading indicator for regional production, registered a 54.8 in January, up from 54.5 in December. Readings above 50 signal economic expansion in Houston over the next 3-4 months. The region’s PMI pushed above 50 following three months post-Harvey, pointing to contraction.
4. The Baker Hughes Oil & Gas Rig Counts increased slightly to 937 in January 2018, up from 930 at the end of December. This level represents an increase of 132% from the bottom of 404 in May 2016 demonstrating sustained growth in the energy market.

 

Houston’s long-term financial and real estate markets will continue to benefit from population growth and increasing job growth. The short term effects of Harvey were felt through the end of 2017, but the recovery efforts will create strong tailwinds in 2018. Overall, the Texas single-family residential markets continue to do well from the population growth, job 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 .

Regards,

Paul Connor , Hydie McAlister
Principals, McAlister Investment Real Estate