The Houston residential real estate market continued its steady climb for a second straight month. Demand continues to push pricing higher and the pace of sales in moderately priced housing continues to increase. The resilient residential market continues to perform well with all-time highs in home pricing and a near-record pace of home sales.
According to the October 2016 MLS Report released on November 9, 20161:
- October 2016 had a total of 5,916 sales vs 5,893 in October 2015, an increase of 0.4% year over year. Overall, year-to-date, total home sales are up 1.2% vs the record pace of 2015.
- "The Houston housing market continues to demonstrate its strength by holding steady in the midst of a weakened energy sector and uncertainty concerning the presidential election” said HAR Chairman Mario Arriaga with First Group. “Even without those influences, autumn traditionally marks a period of slower sales, so we are extremely pleased to see the market keeping pace with last year’s record levels.”
- The median home price in October 2016 was $218,000 vs $205,000 in October 2015, an increase of 6.3%, the highest median price ever for October. The average price climbed 2.2% to a record of $277,904.
- Total single-family home inventory increased to 3.8 months’ supply vs 3.5 a year earlier as additional listings were added into the market. The housing inventory across the U.S. currently stands at a 4.5 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 14,500 jobs in September 2016, according to data from the Texas Workforce Commission. In the 12 months ending September 2016, Houston has created 20,100 jobs.
- Sectors recording notable growth in September were government (+20,800 jobs), education and health services (+2,900 jobs) and construction (+1,600 jobs). The largest losses recorded were in the leisure and hospitality (-3,200 jobs) and financial activities (-2,900 jobs) sectors.
- Houston metro area unemployment decreased in September to 5.7%, down from 5.8% in August 2016.
- The Baker Hughes Oil & Gas Rig Counts increased to 557, up 38% from the bottom of 404 in May 2016, signaling a stabilization in the energy market as producers have become more cost effective.
With the contentious Presidential election over, the financial and real estate markets should benefit as clarity of national policies of the incoming President are identified. For Texas and Houston, the increase in rig counts and stabilization in the energy market has largely halted the job losses of the energy market and supports moderate job growth in 2017 and accelerating into 2018. The Texas metro single-family residential markets are poised to continue to prosper from 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.