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Wednesday, October 14, 2020

Houston Real Estate in September: Sales Up 32% YoY, Inventory Down 25% YoY

by Calculated Risk on 10/14/2020 02:04:00 PM

From the HAR: Houston Home Sales Stage a September Surge

Houston’s sizzling summer of home sales extended into September as consumers continued to take advantage of historically low mortgage interest rates amid a pandemic. Once again, the high end of the market experienced the greatest increase in sales volume, with mid-range homes also drawing strong activity. The sales frenzy, combined with a steady decline in the number of homes entering the market in recent months, has sent inventory to its lowest level in almost six years, making a sales slowdown inevitable as would-be buyers are left with a narrower selection of homes.

According to the latest Houston Association of Realtors (HAR) Market Update, 9,101 single-family homes sold in September compared to 7,050 a year earlier. That translates to a 29.1 percent increase and marks the fourth straight month of positive sales.
Sales of all property types totaled 11,137 – up 31.9 percent from September 2019. Total dollar volume for the month surged 43.6 percent to $3.4 billion. The lease market cooled in September, with declines in single-family housing while townhouse/condo leases were unchanged year-over-year.
emphasis added
Inventory declined 25.4% year-over-year from 42,959 in September 2019 to 32,047 in September 2020.

Note that the closed sales in September were for contracts that were mostly signed in July and August.