Houston Home Sales Drop 19% in April: Market Trends and Outlook
John Nugent, chairman of the Houston Association of Realtors
HOUSTON — (Realty News Report) — Houston home sales dropped 19.1 percent in April as the Covid-19 pandemic disrupted a housing market that had been strong in the first quarter.
The Houston Association of Realtors reported 6,199 single-family homes sold in April, down from 7,666 in April 2019.
“We were bracing for a rough report and we got it,” said HAR Chairman John Nugent of RE/MAX Space Center. “These numbers will likely persist until more Realtors and consumers adopt virtual tools through HAR.com to safely market, tour, and buy or rent homes.”
Many potential sellers delayed listing their homes due to concerns about the highly contagious coronavirus. In the first week of May, 2,878 new listings were added, a 17.5 percent decline from the 3,488 new listings added during the same week in 2019.
In response, Realtors have increased virtual showings and online marketing to keep transactions moving while protecting clients’ health.
Stewart Title Chief Economist Ted C. Jones of Houston projected that second-quarter home sales could fall about 35 percent because of the pandemic, and that full-year 2020 sales might decline roughly 25 percent.
The traditional spring selling season, normally a peak period for home sales, underperformed. Pending sales were down 17.6 percent in April, suggesting a slow May as well.
The median price for single-family homes — the midpoint where half of homes sold for more and half for less — rose 2.4 percent to $251,000, marking the highest April median on record.
Sales of townhomes and condominiums were hit particularly hard, plunging 37.5 percent in April with 376 units sold compared to 602 units a year earlier.
