HOUSTON – (Realty News Report) – Fueled by historically low mortgage rates, Houston home sales surged in 2020 to a record high, finishing the year with a 10.5 percent increase over 2019.
Instead of following the usual seasonal slowdown in November and December, sales accelerated as the year closed.
The Houston Association of Realtors (HAR) reports that 96,151 single-family homes changed hands in 2020, up from 86,996 in 2019.
The pandemic caused a sharp decline in sales in April and May. At that time, many health experts and consumers feared the virus could be spread by touching surfaces such as doorknobs and light switches, which temporarily curtailed in-person showings and transactions.
However, the market rebounded later in the year. Agents adapted to safer showing practices, virtual open houses and remote tours became commonplace, and the Federal Reserve’s influence helped keep interest rates very low. These factors combined to revive demand and sustain strong sales through year end.
“When the coronavirus pandemic struck, we expected the real estate business to hit a brick wall and never fathomed the possibility of 2020 becoming a record year for the Houston market,” said HAR Chairman Richard Miranda of Keller Williams Platinum. “HAR worked closely with elected officials to secure the ‘essential service’ designation for real estate, which allowed our Realtor members to help consumers find the homes they needed. HAR’s virtual open house and virtual showing technology proved invaluable in enabling consumers to safely tour the properties that interested them.”
December posted the strongest year-end performance on record. Unlike most years, sellers and buyers did not pull back for the holidays. In fact, December was the second-highest selling month in the history of Houston home sales.
Single-family home sales in December totaled 9,652, a 25.5 percent increase over December 2019, marking the seventh consecutive month of rising sales. The median price climbed 8.7 percent to a record $273,443, while the average price rose 11.4 percent to $347,164 — another historic high.
Total dollar volume for December jumped 39.3 percent to $3.9 billion, HAR reported.
Inventory of homes for sale remains low, yet the shortage has not significantly deterred buyers. Pending sales stayed strong heading into the new year, suggesting that January could bring another month of exceptional activity.
Jan. 14, 2021 Realty News Report Copyright 2021
Record Houston Home Sales
Photo credit: Ralph Bivins Realty News Report Copyright 2020