Houston Home Sales Jump in February: Market Trends & What Buyers Need to Know
Amy Bernstein
HOUSTON – (Realty News Report) – Houston’s housing market started 2018 with strong momentum, as the Houston Association of Realtors reported a record 5,260 single-family home sales in February.
That mark represents the strongest February on record for the market and the first time sales in that month have surpassed 5,000.
Sales were solid in January as well, and HAR indicates pending contracts for March were rising as the spring selling season approached.
“This is the active season right now,” said Houston Realtor Amy Bernstein of Bernstein Realty. “I really think buyers are very bullish about the market.”
Rising interest rates appear to be adding urgency for buyers, Bernstein noted, as mortgage rates climb. The 30-year fixed-rate mortgage averaged 4.46 percent last week, up from 4.21 percent a year earlier, according to Freddie Mac.
Bernstein highlighted strong recovery and rebuilding in the Meyerland neighborhood of southwest Houston, which suffered significant flood damage during the previous year’s hurricane. The area has seen substantial activity in new construction and major renovations, often involving homes elevated six feet or more above grade.
“Meyerland is making a comeback,” Bernstein said. She added that Bellaire’s Southdale area is very active, with some second-generation homes—built in the 1990s or early 2000s—being raised to higher elevations.
Citywide inventory remains tight, with roughly a 3.2-months supply according to HAR. By comparison, a six-months supply is typically considered a balanced market. In February 2018 there were 33,939 properties listed for sale, down 2.2 percent from 34,707 listings in February of the previous year.
“February was a positive month overall for Houston real estate, but we really need growth in inventory to ensure that there is a plentiful supply of homes as we enter the spring buying season,” said HAR Chair Kenya Burrell-VanWormer of JP Morgan Chase.
Lawrence Yun. Photo by Ralph Bivins
Lawrence Yun, chief economist for the National Association of Realtors, has repeatedly emphasized that homebuilders need to accelerate the pace of new construction to ease the inventory shortage.
Tight supply is driving prices higher and making affordability a challenge for many buyers, particularly first-time purchasers.
The median single-family home price in Houston for February stood at $226,200. By comparison, in February 2008 the median price was $151,000, and the market then had a 6.1-months supply of homes for sale.
Founded in 1918, the Houston Association of Realtors represents some 37,000 members and operates a Multiple Listing Service covering properties in Harris, Montgomery, Fort Bend and neighboring counties.
