HOUSTON – (Realty News Report) – Home sales in Houston surged 29 percent in September as historically low mortgage rates drew buyers into an unusually active fall market.
The Houston Association of Realtors (HAR) reported 9,101 single-family homes sold in September, up from 7,050 a year earlier.
September 2020 marked the strongest September on record for Houston home sales, according to HAR.
It was only the fourth month in which Houston’s monthly single-family home sales exceeded 9,000 units.
Inventory remains tight. For months, Realtors have warned that limited supply could slow sales, but that has not occurred.
An analysis by Realty News Report predicted the sales pace would remain intense despite constrained inventory, and that forecast has so far held true.
Signs point to continued momentum: pending sales jumped 43.7 percent in September, suggesting the surge in activity will persist in the near term.
That said, the upcoming holiday season and the elections could temper consumer activity. Political and economic uncertainty have the potential to disrupt the market.
Mortgage rates have been at historic lows, creating a strong incentive for buyers. The average 30-year mortgage rate tracked by Freddie Mac remained under 3 percent, and many analysts expected rates to stay low for some time.
A slow pace of new listings combined with another month of robust sales pushed single-family inventory down to a 2.5-month supply, compared with 3.9 months a year earlier. The last time inventory fell that low was December 2014. For September, however, HAR noted a 7.0 percent year-over-year increase in new listings.
“September sales defied expectations with many Realtors busier than ever; however, we anticipate the pace of sales will soon slow down since there just aren’t a whole lot of homes out there for consumers to buy,” said HAR Chairman John Nugent with RE/MAX Space Center.
HAR also reported the single-family home median price rose 8.3 percent to $265,000, the highest median for a September on record.
Last year set records for Houston home sales, and 2020 may surpass it. Year-to-date, Houston-area home sales in 2020 were running 5.4 percent ahead of 2019.
Oct. 15, 2020 Realty News Report. Copyright 2020.
File: Home Sales Up 29 Percent in Houston in Sept. 2020
Photo credit: Ralph Bivins, Realty News Report. Copyright 2020.