Record-Breaking April Home Sales in Houston: What Realtors Say

HOUSTON – (By Michelle Leigh Smith for Realty News Report) – April 2019 set a record for April home sales in Houston, with 7,586 single-family houses sold, the Houston Association of Realtors reported.

That total represents a 7.8 percent increase compared with April 2018, the association said.

“April sales are typically strong in Houston because families want to be settled before the next school semester,” said Eric Nelson, a top producer at Carnan Properties. “Lower interest rates compared with recent quarters also helped motivate buyers.”

Mortgage rates continued to ease, according to a Freddie Mac survey released for the week ending May 9. The 30-year fixed-rate mortgage averaged 4.10 percent that week, down from 4.14 percent the previous week and below the 4.55 percent average a year earlier, Freddie Mac reported.

Houston’s home market entered the spring buying season with momentum. On a year-to-date basis, sales were 2.2 percent ahead of last year’s record pace; 2018 itself was a record year for the region.

Strong energy prices also supported the local economy, with West Texas Intermediate crude trading above $60 per barrel this spring.

“Houston’s April home sales were strong because our economy is growing and energy prices are rising. That’s very positive for Houston,” said John Daugherty, chairman and CEO of John Daugherty, Realtors. “I expect the residential market to remain robust into the summer.”

Nancy Almodovar, president and CEO of Nan & Company Properties/Christie’s International Real Estate, said her firm experienced higher sales in April, matching the market’s improvement.

Lisa Barnes, who leads the Lisa Barnes Group at Coldwell Banker United, Realtors, noted that healthy inventory levels helped drive her strong sales, and she expects a robust summer market.

Inventory of single-family homes in Houston rose to a four-month supply in April, up from 3.5 months a year earlier and the largest supply since September 2018. Even so, the market remains a sellers’ market; six months’ inventory is generally considered balanced.

Inventory is also tight in upscale West University Place, according to broker Roger Martin.

“Houston neighborhoods have very distinct price ranges and inventory levels,” said Cathy Blum of Greenwood King Properties. “Some neighborhoods are gaining value while others are holding steady. We’re not seeing the kind of price declines that followed Hurricane Harvey. The Heights is performing well, River Oaks had an active spring, and West U, Southampton, Southgate, Braes Heights, Bellaire and Braeswood remain buyer favorites. Properly priced homes are still attracting multiple offers and back-up contracts.”

HAR reported that the upper end—homes priced above $750,000—was especially strong in April.

“There is notable activity in the $400K–$950K range, and first-time buyers are entering the market,” Blum said. “The $1.2M–$1.5M bracket is moving quickly. The very high end is selling too, although there are naturally fewer buyers, so those homes typically take longer to sell.”

Across the city, prices in April reached their highest levels on record for that month. The median price rose 2.1 percent to $245,000, up from $240,000 in April of the previous year, HAR said.

“It’s an interesting market—homes are selling overall, but some price segments are slower, and there are more sellers than buyers in certain ranges,” said Melinda Noel of Greenwood King Properties. HAR shows 41,086 active listings, a 13.8 percent increase and the highest total since last September. “Inventory has grown in River Oaks, where there are several listings between $1 million and $2 million; two have sold and a third is pending. In the $2M–$3M range there are 18 listings with three pending and six sales so far this year. Some buyers are looking at Royden Oaks or Avalon, since older homes sometimes lack open kitchens.”

“The West U area also has substantial inventory—about 30 houses for sale in the $2M-plus category, with 14 sales so far. There are 54 homes priced from $1M–$2M; 35 are pending and another 44 have sold. So activity is occurring, but certain pockets, especially the $1M–$2M range, aren’t moving as quickly as in the past. Newer homes built after 2005 are selling better,” Noel added.

“Prices seem to be rising near downtown while areas like Willow Meadows appear to be softening,” said Gail Nash of Keller Williams. “Well-executed flips can lift a neighborhood because sellers can command higher prices. My last three buyers were first-time buyers who purchased in the low $400,000s. Leases are more attractive than they were a couple of years ago, but rental listings for investor clients are staying on the market longer than expected. May is a big month in my primary market, the Texas Medical Center, as medical students finish school and either buy or rent for their residency.”

“Linkwood, a neighborhood that was heavily flooded by Harvey, seems to be recovering,” Nash added. “Only two flooded lots remain active, and three are pending to close this month. That’s very good news.”