GHP Research Update Home Sales at Feb 18
February 18, 2014
HOUSTON MULTIPLE LISTING SERVICE
Houston-area realtors sold 4,929 homes in January, a 5.6 percent increase over the 4,667 homes sold in January the prior year, according to data released today by the Houston Association of REALTORS® (HAR). Total sales volume topped $1.148 billion in January, a 26.8 percent increase over the $904.9 million recorded in January ¡¯13. This is the highest January sales volume on record.
¡°January is traditionally a slow time of year for home sales, but throw a depleted supply of inventory into the mix and you get exactly what the Houston market experienced last month,¡± said HAR Chair Chaille Ralph with Heritage Texas Properties. ¡°Until more housing inventory hits the market, we are likely to continue seeing lower sales volume and higher pricing than we did throughout 2013. It¡¯s the basic economic principle of supply and demand playing out.¡±
Local inventory stood at 2.6 months of supply, down from 3.6 in January last year. The market is considered evenly balanced between supply and demand when it has a six-month inventory. The inventory of single-family homes across the U.S. currently stands at 4.6 months, according to the latest report from the National Association of REALTORS.
Housing Market Summary for January ¨C ¡¯14 vs. ¡¯13
January ¡¯14 January ¡¯13 % Change
Total sales 4,929 4,667 5.6%
Total dollar volume $1,147,677,815 $904,858,281 26.8%
Total active listings 28,211 33,532 -15.9%
Total pending sales 3,730 3,591 3.9%
Single-family sales 3,957 3,889 1.7%
Single-family home $244,070 $200,079 22.0%
Single-family home $177,000 $150,000 18.0%
inventory* 2.6 3.6 -
Source: Houston Association of REALTORS®
* The number of months it will take to deplete current active inventory based on the prior 12 months of sales activity.
Broken out by housing segment, January sales performed as follows:
¡ì Less than $80,000 ¡ª decreased 46.3 percent
¡ì $80,000 - $149,999 ¡ª decreased 7.9 percent
¡ì $150,000 - $249,999 ¡ª increased 9.7 percent
¡ì $250,000 - $499,999 ¡ª increased 41.6 percent
¡ì $500,000 - $1 million and above ¡ª increased 45.3 percent
Rentals of single-family homes increased 23.6 percent compared to January ¡¯13 and townhouse/condominium rentals rose 13.3 percent. The average rent for a single-family home increased 4.3 percent to $1,616 in January while the average rent for townhouses and condominiums rose 8.3 percent to $1,508.
Foreclosure property sales reported in the HAR Multiple Listing Service (MLS) continued its months-long decline, dropping 53.2 percent compared to January ¡¯13. Foreclosures currently make up 9.2 percent of all property sales, down from a 19.6 percent share a year earlier. The median price of foreclosures rose 6.9 percent to $86,625.
Prepared by Greater Houston Partnership Research Department
Patrick Jankowski, CCR
Vice President, Research
Manager, Economic Research