HOUSTON – (By Michelle Leigh Smith for Realty News Report) – Houston’s real estate market recorded its strongest May on record as lower mortgage rates and a growing supply of homes for sale energized activity across the region.
The Houston Association of Realtors reported 8,346 single-family homes sold in May, a 2.8 percent increase from 8,117 sales in May of last year. Historically, the Houston market has only exceeded 8,000 monthly sales on a few occasions, making this May unusually robust.
Year to date, home sales are up 2.7 percent compared with the same period in 2018—a year that itself set Houston sales records.
“The Houston housing market remains strong, and savvy buyers are finding attractive opportunities,” said Realtor Michael Magana of Carnan Properties.
Single-family home prices reached new highs in May. The median sale price—the point at which half of homes sold for more and half for less—increased 2.4 percent to $249,993. The average sale price rose 5.8 percent to $323,023. According to HAR, the previous pricing peak was nearly a year earlier, in June 2018.
Top producer Richard Ray of John Daugherty Realtors shared similar enthusiasm, noting strong demand in Lindale Park on the near northside. “Buyers want to be there because they can ride the light rail downtown to work,” Ray said. He added that he’s assisting many newcomers relocating for jobs, including buyers from Boston and Memphis, and placing young families in Pearland, Katy and Sienna Plantation where school quality is a major factor.
“Houston’s real estate market is surging into summer,” said Roger Martin of Roger Martin Properties. “Inventory is finally improving in some of our tighter neighborhoods and we’ve been seeing multiple offers on listings.”
After months of tight supply, total active listings—the number of properties available—rose 10.1 percent to 43,624, HAR reported. That increase in inventory is supporting faster sales momentum across price ranges.
“I’m seeing homes priced at $300,000 and below go under contract quickly,” said Realtor Trish Figueroa of eXp Realty.
The Jean and Jack Shabot team at Berkshire Hathaway reported their best May ever after 22 years of selling homes, focusing on neighborhoods including Bellaire, Meyerland, Westbury, Maplewood and Willow Meadows.
Lower mortgage rates are bolstering optimism in the housing market, even as trade tensions and tariff policies create broader economic uncertainty.
Freddie Mac reported the average 30-year mortgage rate at 3.82 percent for the week ending June 13, down from 4.62 percent a year earlier.
“Mortgage rates were mostly unchanged from last week as easing trade tensions with Mexico helped stabilize markets,” said Sam Khater, Freddie Mac’s chief economist. “These historically low rates should continue to give current homeowners refinancing opportunities, and combined with new homebuyer activity, help sustain the housing market’s momentum in 2019.”
Realtor Kathlyn Curtis and her Why I Love Houston team point to a steady jobs outlook as a key motivator for buyers who feel confident about settling down. “In luxury markets like Central Houston (MLS Area 16), we currently have roughly twice the available inventory as properties sold in the last six months,” said Curtis of Keller Williams Memorial.
“In the Memorial Villages (MLS Area 24), available inventory is nearly three times the number of homes sold,” she added. “Many homeowners in Central Houston and Memorial are connected to the oil and gas industry, which has struggled in recent years. Those who considered selling during downturns often held off. Now we’re seeing an uptick in luxury listings as business-savvy owners take advantage of an improving market.”
June 13, 2019 Realty News Report Copyright 2019
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