HOUSTON – (Realty News Report) – Houston home sales surged 47 percent in April as buyers continued to compete for houses despite record-high prices.
Inventory remains exceptionally tight. Sellers frequently receive multiple offers, and many homes sell for above the asking price.
A total of 9,105 single-family homes sold in April, up from 6,175 in April 2020, the Houston Association of Realtors reported.
The 47.4 percent increase was the largest month-over-month jump on record for sales volume, HAR said. While home sales were suppressed in April 2020 because of the pandemic, last month’s results reflect exceptionally strong demand in the Houston market.
With mortgage rates still low—around 3 percent—experts do not expect the housing market to cool soon, a trend that extends across the country.
Higher mortgage rates could slow price growth, but that could produce a more balanced market and potentially increase the number of transactions, according to Redfin Chief Economist Daryl Fairweather.
“We expect 2021 to be an even more active year for the housing market than 2020 because homebuyers have a better sense of what the future looks like,” Fairweather said. “Employers are providing clarity on permanent remote-work policies, the economy is recovering and mortgage rates remain low. All of these factors mean we’ll likely see even more buyers enter the market this year and in 2022.”
In Houston, sales have gotten off to a strong start this year.
On a year-to-date basis, home sales are 24.4 percent ahead of 2020’s record pace.
“In my 20 years in real estate, I have never seen such dramatic forces sweeping across the Houston housing market as we have experienced since the coronavirus pandemic began,” said HAR Chairman Richard Miranda of Keller Williams Platinum.
“The market is humming along at a record pace, fueled by low mortgage rates despite dwindling inventory and rising prices. However, without a healthy boost in new listings in the weeks and months ahead, the current pace of sales cannot be sustained.”
Strong buyer demand and surging sales reduced single-family home inventory to a 1.4-months supply, down from 3.4 months a year earlier. That level matches the previous month and remains the lowest inventory on record. Nationally, housing inventory stands at a 2.1-months supply, according to the National Association of Realtors.
The volume of transactions has translated into significant revenue for Houston real estate firms.
About $4 billion in residential real estate deals closed in April, an increase of roughly 86 percent from $2.1 billion in April 2020, HAR reported.
Rapidly rising prices are shaping the market.
The average price for a single-family home rose 20.0 percent to $371,854, while the median price increased 17.6 percent to $295,000.
The housing surge shows little sign of slowing in May. Pending sales were up 72.4 percent, indicating many deals remain in the pipeline.
May 12, 2021 Realty News Report Copyright 2021
For more about Texas real estate, see the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins. Available on Amazon.
Photo credit: Ralph Bivins, Realty News Report Copyright 2021
File: Home Sales Up 47 Percent in Houston