February a generally positive month for home sales in Houston

Houston home sales enjoyed their second positive month of the new year, and after three months of declines, stability returned to the luxury market. However, the supply of homes across greater Houston shrank slightly in February, narrowing options for house hunters heading into the traditionally active spring home-buying season.

According to the latest monthly report from the Houston Association of Realtors (HAR), sales of single-family homes rose 5.3 percent in February, with 5,260 units sold. Homes priced between $500,000 and $750,000 experienced the strongest sales activity.

The single-family home median price (the figure at which half of the homes sold for more and half sold for less) increased 1.4 percent to $226,200 — the highest median ever for a February. The average price eked out a fractional 0.4 percent gain to reach a February high of $281,945.

“February was a positive month overall for Houston real estate, but we really need growth in inventory to ensure that there is a plentiful supply of homes as we enter the spring buying season,” said HAR Chair Kenya Burrell Van Wormer with JPMorgan Chase.

February sales of all property types in Houston totaled 6,375, an increase of 3.1 percent versus the same month last year. Total dollar volume grew 4.5 percent to $1.7 billion.

Rental properties drew less interest in February than a year earlier. Single-family home leases and townhome/ condominium leases each fell 11.5 percent. The average rent for single-family homes was up 4.1 percent to $1,720, while the average rent for townhomes and condominiums rose 2.2 percent to $1,515.

Most of Houston’s monthly housing market indicators reflected positivity in February, with single-family home sales, total property sales, average and median pricing and total dollar volume all up compared to February 2017. Month-end pending sales for single-family homes totaled 6,912, up 11.1 percent versus last year. Total active listings, or the total number of available properties, however, declined 2.2 percent to 33,939.

Single-family homes inventory shrank to a 3.2-month supply from 3.4 months a year earlier. For perspective, housing inventory across the U.S. currently stands at a 3.4-month supply, according to the latest report from the National Association of Realtors (NAR).

Single-family home sales rose in February, with 5,260 units sold throughout greater Houston. That is up 5.3 percent from a year earlier when sales volume totaled 4,997. After three consecutive months of declining sales volume, the luxury market — defined as homes priced from $750,000 and up — was flat in February.

The median price reached the highest level ever for a February in Houston, increasing 1.4 percent to $226,200. The average price rose a fractional 0.4 percent, which was sufficient to achieve a February record of $281,945.

Days on market (DOM), or the number of days it took the average home to sell, decreased slightly from 67 to 65 days. Inventory fell from a 3.4-month supply to a 3.2month supply year-over-year, its lowest level since December 2017.

Broken out by housing segment, February sales performed as follows:

$1 - $99,999: decreased 2.8 percent $100,000 - $149,999: decreased 11.8 percent $150,000 - $249,999: increased 10.9 percent $250,000 - $499,999: increased 10.2 percent $500,000 - $749,999: increased 18.8 percent $750,000 and above: unchanged.