HOUSTON – Despite pressure from the downturn in the energy sector and sluggish job growth, the Houston housing market posted record sales in 2016, the Houston Association of Realtors (HAR) reported.
HAR recorded 76,449 home sales in 2016, a 3 percent increase from the 74,174 sales in 2015. Last year set a new high for single-family home sales in the Houston area.
This 2016 total surpassed the previous record of 75,470 homes sold in 2014.
“We could not be happier with the Houston housing market’s 2016 performance,” said HAR Chair Cindy Hamann of Heritage Texas Properties. “The year began cautiously because energy-related layoffs impacted higher-priced housing, but by year-end the data reflected a truly diversified Houston economy. Hiring in other industries and steady inflow of buyers from across the country and around the world helped sustain the market.”
Heading into the new year, momentum looked strong, bolstered by a late-year stock market rally and signs of stabilization in the energy sector.
“We did have a very active period after the election. December is usually slow,” said Amy Bernstein of Bernstein Realty. “In our office, however, December was very busy.”
HAR reported 6,628 single-family homes sold in Houston in December, the highest December total on record.
“Based on how 2016 closed and how 2017 began, I expect 2017 to be a very good year,” Bernstein said. “We’re seeing more relocation activity again. Many buyers who had been on the fence are ready to buy early in 2017. Our phones and emails are busy. If the first week of January is an indicator, 2017 will be a strong year.”
Oil price declines took a heavy toll on Houston’s economy in 2016. West Texas Intermediate crude dropped from $107 per barrel in June 2014 to a low near $26 per barrel in February 2016. Numerous energy companies sought bankruptcy protection and thousands of Houstonians lost jobs.
Nonetheless, the housing market avoided major damage. Modest but positive job growth and historically low mortgage rates helped keep market activity moving.
The higher-end segment experienced volatility during 2016, yet sales of homes priced above $500,000 surged 23 percent in November.
In December, the median sales price for single-family homes—the point at which half the homes sold for more and half sold for less—rose 2.7 percent to $225,903, the highest December median on record. The average price increased 4.3 percent to $294,512, another December high.
At year-end, available inventory remained very tight, equating to a 3.3-month supply of homes for sale.
Jan. 11, 2017 Realty News Report Copyright 2017