Houston home sales cool in March

The Houston real estate market experienced its first sales slowdown since Hurricane Harvey last August, as 6,810 single-family homes sold in March versus 6,982 a year earlier. That represents a 2.5percent decline. The rental market also saw waning consumer interest for both singlefamily homes and townhomes/ condominiums. However, inventory of homes for sale reached the most plentiful level in four months.

According to the latest monthly report from the Houston Association of Realtors (HAR), the best-performing segment of the market consisted of homes priced in the $500,000 to $749,999 range, which rose 7 percent. The luxury market — homes priced at $750,000 and above — was flat for the second month in a row.

Home prices reached the highest levels ever for a March. The single-family home median price (the figure at which half of the homes sold for more and half sold for less) increased 2.4 percent to $233,500 and the average price climbed 3 percent to $292,756.

“We were a bit surprised that sales slowed during the lead-up to the traditional spring buying season, but are pleased to see that inventory levels have improved,” said HAR chair Kenya Burrell-VanWormer with JPMorgan Chase.

March sales of all property types in Houston totaled 8,274, a decline of 2.3 percent versus the same month last year. Total dollar volume grew 0.7 percent to $2.3 billion.

Property rentals were down in March. Single-family home leases fell 9 percent while leases of townhomes and condominiums dropped 13.1 percent. The average rent for singlefamily homes rose 6 percent to $1,748, while the average rent for townhomes and condominiums edged up 0.7 percent to $1,496.

The Houston real estate market achieved mixed results for March, with single-family home sales and total property sales down while pricing and total dollar volume were up compared to March 2017. Month-end pending sales for single-family homes totaled 8,327, up 9.5 percent from last year. Total active listings, or the total number of available properties, fell 4.6 percent to 35,004.

Single-family homes inventory reached a 3.4-month supply in March versus 3.6 months a year earlier, but is at its highest level of this year. It held at a 3.2-month supply throughout January and February. For perspective, housing inventory across the U.S. also stands at a 3.4-months supply, according to the latest report from the National Association of Realtors (NAR).

Single-family home sales fell 2.5 percent in March, with 6,810 units sold throughout greater Houston compared to 6,982 a year earlier. Sales volume in the luxury market — priced from $750,000 and up — was unchanged for a second consecutive month. The median price reached the highest level ever for a March in Houston, increasing 2.4 percent to $233,500. The average price also reached a March high, up 3 percent to $292,756.

Days on market (DOM), or the number of days it took the average home to sell, edged up from 61 to 63 days. Inventory narrowed from a 3.6-month supply to a 3.4-month supply year over year, but is at its highest level of 2018. Broken out by housing segment, March sales performed as follows:

• $1 - $99,999: decreased 19.7 percent

• $100,000 - $149,999: decreased 17.1 percent

• $150,000 - $249,999: decreased 1.1 percent

• $250,000 - $499,999: increased 1.0 percent

• $500,000 - $749,999: increased 7.0 percent

• $750,000 and above: unchanged

HAR also breaks out the sales figures for existing singlefamily homes. Existing home sales totaled 5,528 in March, down 3.4 percent versus the same month last year.