HOUSTON — (Realty News Report) — Neither snow, ice, nor darkness could stop Houston Realtors from closing deals.
Houston home sales rose 1.2 percent in February, even after a disruptive winter storm in mid-February that caused power outages, froze pipes and damaged numerous homes.
“The Houston housing market showed resiliency again last month, coming through strong despite the brutal winter storm that caused widespread power outages, property damage and briefly held up transactions and showings,” said HAR Chairman Richard Miranda of Keller Williams Platinum.
Some sellers temporarily pulled listings after broken pipes produced water damage in thousands of homes.
Despite Snow and Ice, February Sales Increase 1.2 Percent
According to the Houston Association of Realtors (HAR) market update, 6,049 single-family homes sold in February versus 5,979 in the same month last year.
Prices reached new highs: the average price for single-family homes rose 16.2 percent to $349,963, while the median price increased 12.6 percent to $275,900.
Sales across all property types totaled 7,464, up 1.9 percent from February 2020. Total dollar volume for the month climbed 17.3 percent to $2.4 billion.
Mortgage rates ticked up slightly but remain low compared with historical averages.
Rising rates could prompt hesitant buyers to act sooner, accelerating demand as they try to lock in financing before further increases.
Last week the 30-year fixed-rate mortgage climbed above 3 percent for the first time in seven months. Freddie Mac reported the 30-year fixed-rate average at 3.02 percent, up from 2.97 percent a week earlier and 3.29 percent a year earlier. The last time the rate exceeded 3 percent was July 2020.
Buyers are moving quickly to absorb available inventory. The total number of homes for sale fell 37.9 percent as fewer new listings entered the market. At the end of February, HAR reported 23,933 homes for sale, down from 38,517 in February of last year.
Facing Shrinking Inventory
Since last summer, industry leaders have warned about low inventory and predicted that sales might slow due to the shortage. Instead, buyers continued to purchase, helping Houston record its highest annual sales total in 2020.
Months of inventory for single-family homes hit a historic low of 1.6 months, a figure that strongly favors sellers; by contrast, a balanced market typically has about six months of supply.
On the inventory outlook, HAR’s chairman urged action: “As we head into spring, we urgently need more listings to enter the marketplace or we risk having extremely limited inventory for consumers that want to buy a home now, especially with the prospect of rising mortgage interest rates.”
Home prices have continued to climb. The single-family median price set a record high at $275,900, up 12.6 percent year-over-year. The single-family average price also reached a record high of $349,963, a 16.2 percent increase from $301,301 the prior year.
During the February storm, Houston Realtors and related professionals adapted quickly to keep transactions moving whenever possible.
A Closing Van and Creative Solutions
“One of the title companies we use has a well-equipped Mercedes Sprinter van with Wi‑Fi, scanner, fax and printer, so we were able to complete funding from the van,” said Realtor Amanda Anhorn of Greenwood King Properties. “They brought the closing to my seller. They sat in comfortable chairs, signed the paperwork and returned to their work-from-home office.”
The mobile closing van was developed by Houston closing attorney Charles H. Mansour, an independent fee attorney underwritten by Fidelity National Title.
“It has been a huge hit among agents, lenders, buyers and sellers and uses the tagline ‘Closer to Home,’” said Hillary Stryker of the Mansour organization.
March 11, 2021 Realty News Report Copyright 2021
File: Storm Fails to Defeat Realty Sales Momentum
File: HAR. Houston Assn. of Realtors. Storm Fails to Defeat Realty Sales Momentum, sales up 1.2 percent. Greenwood King. Charles H. Mansour