Houston home sales show no let-up in July

By the numbers, Houston-area home sales were down this July compared to last. However, that is because COVID-related home closing delays during Q2 2020 finally pushed through that July as most of the pandemic lockdowns were lifted. The resulting surge of pent-up sales cemented July 2020 in the real estate history books as a record-setting month that could not be rivaled by the rapidfire pace of the current market.

According to the Houston Association of Realtors (HAR) July 2021 Market Update, single-family homes sales were down 6.1 percent compared to last July, with 10,159 units sold versus the historic 10,822 that sold a year earlier. However, when compared to July 2019 — an average month of home sales with volume totaling 8,921 — the Houston housing market was up 13.9 percent. On a year-to-date basis, local home sales currently exceed 2020’s record pace by 19.1 percent.

Once again, homes priced from $750,000 and above led the way in sales volume with a 36.7 percent year-over-year increase. That was followed by the $500,000 to $750,000 segment, which rose 18.9 percent. The single-family home average price increased 15.3 percent to $389,197 and the median price climbed 13.9 percent to $309,910. That marks the second highest pricing of all time behind last month’s record-setting figures.

Sales of all property types fell 3.7 percent year-over-year, totaling 12,383. That is the third greatest volume of all time behind June 2021 (13,115) and July 2020 (12,865). Total dollar volume for the month rose 11.4 percent to $4.5 billion.

“We know anecdotally that the Houston real estate market is still red hot, but the statistics make it appear to be slower than a year ago because of the surge in home closings that took place last July when the market began to normalize with the lifting of pandemic-related restrictions,” said HAR Chairman Richard Miranda with Keller Williams Platinum. “Assertive investors and cash buyers are still controlling the tides of this seller’s market, but hopefully that will moderate with a continued influx of new listings.”

In June 2021, the “Close to Original List Price Ratio” for single-family homes reached 100.3 percent — the highest ever. That means that a majority of buyers paid above list price for homes on the market. This July, it was 100.2 percent, indicating that this high-dollar buying trend continues.

As in June, consumer demand for lease properties was down in July and rent prices were up. Single-family lease homes fell 20.1 percent year-over-year, while leases of townhomes and condominiums dropped 10.8 percent. The average rent for single-family homes jumped 11.4 percent to a record $2,162, while the average rent for townhomes and condominiums increased 5.8 percent to $1,756.

The Houston housing market saw 13 consecutive months of positive sales come to an end in July as a result of a statistical anomaly. A surge in pandemic-delayed home closings in July 2020 set record levels that were no match for even the robust pace of the current market.

Single-family home sales and total property sales registered declines versus last July while total dollar volume rose. Pending sales increased 2.4 percent. However, total active listings — or the total number of available properties — remain 20.6 percent lower than this same time last year.

Single-family homes inventory reached a 1.8-month supply in July, down from 2.9 months a year earlier. However, that is the greatest supply of homes that the market has had in 2021 and reflects a 7.8 percent uptick in new listings. Housing inventory nationally stands at a 2.6-month supply, according to the National Association of Realtors (NAR).

Single-family home sales fell 6.1 percent in July with 10,159 units sold across the greater Houston area compared to 10,822 a year earlier. The decline reflected pandemic-related delays in closings during Q2 2020 that finally pushed through to record levels that July once lockdowns were lifted. However, in comparison to July 2019 — an average month of home sales — the Houston housing market was up 13.9 percent.

The single-family home average price climbed 15.3 percent to $389,197, while the median price rose 13.9 percent to $309,910. Those are the second-highest pricing levels in Houston real estate history.

The time it took to sell a home fell by almost four weeks compared to July 2020. Days on Market (DOM) went from 56 to 26. Inventory registered a 1.8-month supply compared to 2.9 months a year earlier. That level is the highest of 2021 but is below the current national inventory of 2.6 months recently reported by NAR.