Dyman Real Estate: Houston real estate market zooms into record territory
by Shewee Cochiu Dorota Dyman & AssociatesHOUSTON 2 The Houston real estate market ended 2013 as it
began – in the fast lane. Surging home sales throughout greater Houston were
largely driven by the addition of more than 86,000 jobs that drew buyers and
renters from all around the country and world. December marked the 31st
straight month of positive home sales and was a month in which prices again
rose and housing inventory shrunk to new
record lows.
According to the latest monthly data prepared by the
Houston Association of Realtors, December single-family home sales increased
14.3 percent versus December 2012. Contracts closed on 5,813 homes, driving
inventory down to 2.6 months supply, the lowest level of all time.
All housing segments saw gains in December except for the
low end of the market – those homes priced at $80,000 and below. Homes priced
from $250,000 and above registered the highest sales volume and accounted for
another hike in prices.
“The Houston housing
market had its best year on record in 2013, and those of us who work in
real estate have never been busier,” said HAR Chair Chaille Ralph, with
Heritage Texas Properties. “Stewart Title Chief Economist and former HAR
Chairman Dr. Ted C. Jones forecasts positive sales to continue in the new year,
but at a slower pace. He anticipates about a 5 percent increase in home sales
and a 6 percent gain in pricing. However, all that hinges on having homes to
sell, and the local inventory is running extremely low.”
The single-family home average price rose 10.3 percent
year-over-year to $265,017, while the median price – the figure at which half
of the homes sold for more and half sold for less – rose 10.9 percent to
$188,500. Both figures represent historic highs for a December in Houston.
Sales of foreclosure properties continued their yearlong
decline, falling 48.8 percent compared to December 2012, according to the HAR
Multiple Listing Service. Foreclosures currently make up 6.5 percent of all property
sales reported through the MLS, one-third of the share they comprised at
the beginning of 2013. The median price of December foreclosures increased 8.3
percent to $91,000.
December sales of all property types in Houston totaled
6,987, a 14.2 percent increase over the same month last year. Total dollar
volume for properties sold in December soared 24.2 percent to $1.8 billion
versus $1.4 billion a year earlier.
Annual Market
Comparison
The Houston housing market concluded calendar year 2013
with strong gains in sales volume and pricing versus 2012. The heaviest
one-month sales volume of the year was recorded in May, with 7,705 closings. By
contrast, the lightest one-month sales volume of 2013 took place in January,
with 3,889 closings. However, January also marked the greatest year-over-year
percentage sales increase, with a 28 percent gain over January 2012.
Single-family home sales rose 17.4 percent for the year
and sales of all property types increased 18.8 percent. On a year-to-date
basis, the average price climbed 10.3 percent to $248,591 while the median
price increased 9.4 percent to $180,000. Total dollar volume for full-year 2013
reached a record high, jumping 30.2 percent to nearly $21 billion compared to
$16 billion in full-year 2012.
Monthly Market
Comparison
December delivered positive results across all sales
categories compared to December 2012. On a year-over-year basis, total property
sales, total dollar volume and average and median pricing were all on the rise.
Active listings, or the number of available properties, at the end of December
declined 16.1 percent from December 2012 to 28,147.
Housing inventory in Houston has been below a four-month
supply since November 2012. It fell below a three-month supply in November
2013, dropping in December to a 2.6-month supply from 3.7 months a year
earlier. That is the lowest level ever recorded locally. Inventory consisting
of a six-month supply is typically regarded as constituting a balanced real
estate market. For perspective, the national inventory of single-family homes
is 5.1 months of supply, according to the National Association of Realtors.
Broken out by housing segment, December sales performed
as follows:
• $1 to $79,999: decreased 29.4 percent
• $80,000 to $149,999: decreased 7.7 percent
• $150,000 to $249,999: increased 19.6 percent
• $250,000 to $499,999: increased 40.7 percent
• $500,000 to $1 million and above: increased 29.8
percent
The average price of a single-family home rose 10.3
percent from last year to $265,017, the highest level ever for a December in
Houston. At $188,500, the median sales price for single-family homes also
achieved an historic high for December, up 10.9 percent year-over-year.HAR also
breaks out the sales performance of existing single-family homes throughout the
Houston market. In December 2013, existing home sales totaled 4,890, a 17.9
percent increase from the same month last year. The average sales price rose
11.9 percent year-over-year to $248,072. The median sales price increased 11.4
percent to $171,500.Townhouse/CondominiumDecember sales of townhouses and
condominiums jumped 15.4 percent from one year earlier.
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