Wednesday, November 13, 2019

Houston Real Estate in October: Sales up 6% YoY, Inventory Up 7%

by Calculated Risk on 11/13/2019 10:37:00 AM

Another solid regional market in October.

From the HAR: Buyers Maintain Demand for Houston Housing in October

Continued low mortgage interest rates kept consumers in a buying mood in October, powering home sales to a fourth consecutive positive month. According to the latest monthly report from the Houston Association of Realtors (HAR), sales of single-family homes across the greater Houston area totaled 7,231 in October. That is up 8.1 percent compared to a year earlier. On a year-to-date basis, home sales are 4.2 percent ahead of 2018’s record volume, making it ever more likely that 2019 will establish a new record for local real estate.
Sales of all property types climbed 6.2 percent in October, totaling 8,579 units. Total dollar volume rose 7.9 percent to $2.4 billion.

In addition to the incentive that lower mortgage rates create, buyers benefited from a slightly larger supply of homes on the market with housing inventory up to a 4.0-months supply in October versus 3.9 months in 2018. So far this year, the peak inventory was reached in June and July when it grew to a 4.3-months supply.

“Consumers continue to take advantage of attractive buying conditions, between low interest rates, a healthy supply of homes on the market and a strong overall Houston economy,” said HAR Chair Shannon Cobb Evans with Better Homes and Gardens Real Estate Gary Greene. “Interest rates are currently forecast to remain low into the new year, so it’s possible that we get through the holidays without too much of a seasonal slowdown in home sales, but we’ll just have to see how things go.”
emphasis added
Total active inventory was up 6.9% YoY to 43,468 properties from 40,675 properties in October 2018. Sales are on pace for a record year.