The Houston residential real estate market continued to soar in June. Demand for housing continues to increase and push pricing higher across the market. Increased sales in moderate and luxury priced housing continue to lead the way. Overall, the residential market is continuing to demonstrate healthy and sustainable growth.
According to the June 2017 Houston MLS Report released on July 12, 2017:
- June 2017 had a total of 8,414 single family home sales vs 7,771 in June 2016, an increase of 8.3% year over year.
- The strongest home sales activity took place among homes in the $750,000+ range with an increase of 13.0% followed by homes in the $150,000 to $249,999 range which increased by 12.2%. June was the eighth straight month that the luxury segment enjoyed rising sales.
- "June proved to be another phenomenal month for the Houston real estate market with buyers and renters sending volume and pricing into record territory," said HAR Chair Cindy Hamann. "Between continued strong employment numbers and healthy housing inventory levels, we expect the market to remain vibrant."
- The median home price in June 2017 was $239,023 vs $233,000 in June 2016, an increase of 2.6%, that marks the highest median price of all time. The average price climbed 1.5% to a record-high of $304,155.
- Total single-family home inventory increased to 4.4 months’ supply vs 3.9 a year earlier as additional listings were added into the market. The housing inventory for the U.S. currently stands at a 4.2 months’ supply per the National Association of Realtors (NAR). Anything below 6.0 months’ supply is considered a tight market.
- June 2017 sales of all property types in Houston totaled 9,993, an increase of 8.3% year over year.
Texas Workforce Commission, GHP and Baker Hughes:
- In May 2017, 6,700 new jobs were added to Houston, the gain on par with the regions 20-year average of 6,800 jobs for the month. Total jobs increased 1.5% year over year.
- Houston metro area unemployment decreased in May to 5.1%, down from 5.3% in April 2017.
- Leisure and Hospitality, Manufacturing, Other services and Financial activities made up the top four sectors of job growth in May 2017. Leisure and Hospitality added 5,800 jobs, Manufacturing added 1,800 jobs, Other services added 1,700 jobs and Financial activities added 1,600 new jobs to the area in May.
- The Baker Hughes Oil & Gas Rig Counts increased to 931 in June 2017, up 130% from the bottom of 404 in May 2016, demonstrating sustained growth in the energy market as producers continue to be more cost effective.
Houston’s financial and real estate markets continue to benefit from population growth and increasing job growth. For Texas, we see continued job growth in 2017 and accelerated growth in 2018. The Texas metro single-family residential markets are positioned to flourish 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
Vice President, McAlister Investment Real Estate