HOUSTON – Houston’s housing market showed signs of recovery in October as the region continued to rebound from Hurricane Harvey and the devastating 50 inches of rain it dumped across the area.
According to the Houston Association of Realtors (HAR), 6,381 single-family homes sold in October, an increase of 7.5 percent compared with 5,934 sales in October 2016. That gain contributed to a year-to-date pace that keeps 2017 on track to become the strongest year for home sales in Houston on record, with total sales up nearly 3 percent compared with the same period in 2016.
“The overall Houston real estate market wasted little time recovering from Hurricane Harvey’s devastation, but we’d like to see supply grow to meet ongoing consumer demand for housing,” said HAR Chair Cindy Hamann of Berkshire Hathaway HomeServices Anderson Properties.
Low inventory remains a major issue across much of the country, and Houston is no exception. A shortage of available homes puts upward pressure on prices and complicates moves for homeowners who wish to sell.
“Currently there is about a four-month supply of homes available; in a normally balanced market, there should be a six-month supply,” said Lawrence Yun, chief economist for the National Association of Realtors (NAR). “In places like Dallas and Austin, we’re seeing an inventory shortage. In Austin, there is less than a two-month supply.”
NAR research also indicates that homeowners are living in their properties longer than in the past. The typical duration is now about 10 years, up from roughly six years previously. Yun noted that longer tenure contributes to the inventory crunch because homeowners who might otherwise sell often hesitate, wondering whether they will find a suitable replacement property.
At the NAR convention in Chicago, Yun emphasized that tight supply is driving prices higher and called for more construction to increase housing availability. “Affordability is getting out of hand,” he said. “We need to get home builders to build more homes.”
In October, Houston had a 3.9-month supply of homes for sale, below the six-month threshold generally considered indicative of a balanced market. As a result, competition among buyers has kept prices on the rise.
Houston’s single-family median home price reached $226,941 in October, a 3.9 percent increase from $218,040 in October of the previous year.
Rental demand remained strong in October as many residents who sustained storm damage sought temporary housing while repairs were completed, further supporting leasing activity in the region.