Low interest rates and good economic conditions kept homebuyers buying in October. On a year-to-date basis, home sales are 4.2 percent ahead of 2018, making it likely that 2019 will establish a new record for Houston real estate sales.
According to the Houston Association of Realtors, sales of single-family homes across the Houston area totaled 7,231 in October. This is up 8.1% from the same period in 2018.
Homes priced between $500,000 and $750,000 led the way in sales, climbing 13.0 percent versus October 2018. That segment was followed closely by homes in the $250,000 to $500,000 range, which rose 12.9 percent. The luxury segment, which is made up of homes priced from $750,000 and above, was unchanged year-over-year.
Homes priced between $500,000 and $750,000 led the way in sales, climbing 13.0 percent versus October 2018. Homes priced between $250,000 to $500,000 rose 12.9 percent. The luxury segment, which is made up of homes priced from $750,000 and above, was unchanged year-over-year.
Median home prices for single-family homes reached an all-time high for October, climbing 2.1 percent to $239,900. The average price also hit a record for September, rising 1.3 percent to $298,354. Despite record prices, these increases are among the smallest of 2019, which may reflect signs of pricing moderation as we approach the end of the year.
According to HAR, total active listings, or the total number of available properties, went up 6.9 percent to 43,468. October sales of all property types totaled 7,231, up 8.1% compared to the same month last year. As a result, the absorption rate for October 2019 was up slightly to 17% from the 16% rate we saw in October of 2018 for all property types.
Days on Market (DOM), or the number of days it took the average home to sell, was 59 compared to 61 a year ago. Inventory expanded to a 4.0-months supply. That is up from 3.9 months year-over-year and is slightly below the 2019 peak of 4.3 months reached in June and July. The national inventory stands at 4.1 months, according to NAR.
Mortgage rates have fallen in the past couple of weeks and it is anticipated that they will remain low through the end of the year. If economic conditions remain positive, then we should see the appetite for Houston real estate continue till the end of the year.
Norhill Realty provides expert real estate services to residential buyers and sellers in Houston and surrounding communities. Contact us today for more information on Houston real estate and for professional assistance navigating this sometimes complex home market.
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