HOUSTON – Building on the strongest year ever for home sales in Houston, the market continued its positive momentum in January 2017 as single-family home transactions increased.
The Houston Association of Realtors reported 4,080 single-family homes sold in January, a 1.7 percent rise from the 4,011 homes sold in January 2016.
Last month was the second-best January on record for Houston home sales.
“The Houston real estate market is off to an impressive start for 2017, with the end of the holidays and rising interest rates prompting many hesitant buyers to act in January,” said HAR Chair Cindy Hamann of Heritage Texas Properties. “It’s particularly encouraging to see renewed activity at the high end of the market, which slowed when oil prices fell but has now posted positive sales for three consecutive months.”
While the energy sector downturn previously hit upper-tier single-family sales hardest, January showed strength across most price segments. Luxury properties, including mansions and mini-mansions, had lagged during the energy-related slowdown, but other price ranges experienced notable gains.
The market in early 2017 displayed broad-based strength across price levels.
Sales of homes priced at $750,000 and above rose 14.3 percent in January compared to the year-ago month, HAR reported.
The median price for a single-family home—the midpoint at which half the homes sold for more and half for less—increased 4.0 percent to $210,000, marking the highest January median on record. The average price climbed 5.3 percent to $275,696, also a January high.
Inventory remains tight, supporting sellers. Single-family home inventory stood at a 3.5-month supply, well below the six-month supply typically considered a balanced market.
Worth noting: roughly a year earlier, oil prices had fallen below $30 a barrel; at the time of this report they were trading above $50 a barrel. Although Houston’s economy is diversified, oil prices continue to influence the local market.
Feb. 9, 2017 Realty News Report. Copyright 2017