Houston’s March housing numbers show stability despite ongoing energy jitters

Despite continued strains in the oil patch, the Houston real estate market demonstrated more sustainable conditions in March, with positive sales among mid-range homes and a growing supply of homes from which buyers can choose.

According to the latest monthly report prepared by the Houston Association of Realtors (HAR), March single-family home sales declined 2.2 percent versus March 2015, with a total of 6,001 sales compared to 6,137 a year earlier. On a yearto-date basis, however, home sales are 1.0 percent ahead of last year’s pace. New listings helped boost inventory from a 2.8-months supply to 3.6 months.

“Overall home sales held steady throughout March, and much of that may be due to an influx of new residents throughout the Houston area even as the energy industry suffered more layoffs,” said HAR chairman Mario Arriaga with First Group. “Positive home sales in the $150,000250,000 price range, and increasing housing inventory suggest that we are in a more sustainable market.”

In its April 2016 report on the Houston economy, the Greater Houston Partnership (GHP) cited U.S. Census Bureau data showing the Houston metropolitan area, leading the nation in population growth in 2015, with the addition of over 159,000 new residents. GHP stated that since April 2010, Houston has added over 736,000 residents and that energy industry layoffs have been offset by job creation in other sectors.

Home prices showed mixed readings in March. The single-family home average price declined 1.6 percent to $272,658. The median price —the figure at which half of the homes sold for more and half sold for less — rose 2.4 percent to $215,000, the highest price ever for a March.

March sales of all property types in Houston totaled 7,375, down 1 percent from the same month last year. Total dollar volume for properties sold in March fell 2.5 percent to $1.9 billion. March monthly market comparison

Houston’s monthly housing market measurements were mixed in March compared to those from a year earlier, but still demonstrate what are considered more sustainable market conditions. On a year-over-year basis, single-family homes sales, average price, total dollar volume were down while inventory levels grew and the median sales price rose to a March high. Month-end pending sales for single-family homes totaled 8,018, an increase of 4.9 percent compared to last year. Total active listings, or the total number of available properties, at the end of March shot up 21 percent from March 2015 to 34,504.

An increase in new listings in March gave single-family home inventory a boost, with levels climbing from a 2.8-months supply to 3.6 months. March 2015 to March 2016 change » Total property sales: 7,448 to 7,375; -1.0 percent » Total dollar volume: $1,943,771,966 to $1,894,976,160; -2.5 percent » Total active listings: 28,507 to 34,504; 21 percent » Single-family home sales: 6,137 to 6,001; -2.2 percent » Single-family average sales price: $277,064 to $272,658; -1.6 percent

» Single-family median sales price: $209,900 to $215,000; 2.4 percent » Single-family months inventory: 2.8 to 3.6; 28.6 percent » Single-family pending sales: 7,647 to 8,018; 4.9 percent Single-family homes update

Single-family home sales totaled 6,001 in March, a decrease of 2.2 percent from March 2015.

The average price dropped 1.6 percent to $272,658, while the median price rose 2.4 percent to $215,000, a record high for a March in Houston. Days on market (DOM), or the number of days it took the average home to sell, edged up to 58 days versus 54 in 2015.

Broken out by housing segment, March sales performed as follows: •$1 - $79,999: decreased 19.8 percent •$80,000 - $149,999: decreased 17.4 percent •$150,000 - $249,999: increased 8.1 percent •$250,000 - $499,999: decreased 2.5 percent •$500,000 and above: decreased 12.4 percent Single-family average home price

HAR also breaks out the sales figures for existing single-family homes. Existing home sales totaled 5,066 in March, down 1 percent versus the same month last year. The average sales price fell 2.7 percent year-over-year to $254,012, while the median sales price climbed 2.9 percent to $198,000. Townhouse/condominium update

Sales of townhouses and condominiums rose 1.9 percent in March, coming off of last month’s year-over-year decline of 10.5 percent. A total of 589 units sold compared to 578 properties in March 2015. The average price declined 2 percent to $193,483, while the median price rose 4.9 percent to $150,000. Inventory grew from a 2.6-months supply to 3.5 months. Lease property update

Demand for single-family lease homes remained strong in March, climbing 9 percent, while townhomes/condominiums saw demand increase by 7.4 percent. The average rent for single-family homes edged up 0.6 percent to $1,736, while the average rent for townhomes/condominiums rose 1.7 percent to $1,596.