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Wednesday, March 11, 2020

Houston Real Estate in February: Sales up 14.9% YoY, Inventory Up 3.8% YoY

by Calculated Risk on 3/11/2020 11:49:00 AM

This is prior to COVID-19 and also prior to the collapse in oil prices.

From the HAR: Houston Home Sales Gain Momentum in February

The Houston real estate market built upon its strong 2020 start by registering an eighth consecutive month of positive home sales in February. Consumer activity was once again largely fueled by some of the lowest interest rates of all time. ...

According to the latest monthly Market Update from the Houston Association of Realtors (HAR), 6,044 single-family homes sold in February compared to 5,339 a year earlier, accounting for a 13.2 percent increase.
Sales of all property types totaled 7,393, up 14.9 percent from February 2019. Total dollar volume for the month jumped 19.4 percent to slightly more than $2.1 billion. .

“The Houston housing market gained momentum in February, thanks largely to record low mortgage rates that some economists say could drop even further,” said HAR Chairman John Nugent with RE/MAX Space Center. “Concerns have been raised about the possible effects the coronavirus outbreak might have on our real estate market and others around the country, and that is something HAR is monitoring. Coronavirus was not a factor in the February housing data, but obviously with the losses that Wall Street has suffered as well as declining oil prices, we are keeping a watchful eye on housing market activity.”
Total active listings, or the total number of available properties, rose 3.8 percent to 40,091.. … Single-family homes inventory recorded a 3.5-months supply in February, down fractionally from a 3.6-months supply a year earlier.
emphasis added
Sales in Houston set a record in 2019 and were off to a strong start in 2020.   The decline in oil prices will hit Texas hard, and sales will also likely be impacted by COVID-19 - although record low mortgage rates will help.