Forbes Names Houston ‘America’s Next Great Global City’

12.11.13 by

In the latest grand accolade for the Petro Metro, Forbes predicts that within a decade Houston will be known as “America’s next great global city.”Hosuton Real Estate, Houston Residential Real Estate, houston homes for sale, houston houses for sale, real estate houston, residential real estate houston

Forbes made the prediction in its article “A Map of America’s Future: Where Growth Will Be Over the Next Decade,” part of its “Reinventing America” series.

The article breaks the country into seven major regions, including the Third Coast — of which Houston is named the capital.

“Once a sleepy, semitropical backwater, the Third Coast, which stretches along the Gulf of Mexico from south Texas to western Florida, has come out of the recession stronger than virtually any other region,” Forbes writes. “Since 2001, its job base has expanded 7 percent, and it is projected to grow another 18 percent in the coming decade.”

Forbes notes two of Houston’s major economic powerhouses — energy and trade — as two of the driving forces behind the area’s success.

In addition to Houston’s energy prominence, Forbes also notes the racially and ethnically diverse metro has the world’s largest medical center and recently surpassed New York City as the No. 1 exporter nationwide. The diversification of the region’s economy will continue to increase as the area’s wealth grows, according to Forbes.

Last year, Forbes named Houston the coolest city in which to live, and the Bayou City has racked up numerous superlatives since then.

Baby Boomers Effect Houston’s New Home Markets

12.02.13 by

As Baby Boomers age, their preferences and the sheer size of the generation are having a great effect on Houston’s living situation.

Baby Boomers are generally shying away from the quintessential grand house with the huge yard that made up the American dream. Today, many would rather find a place that’s an easy, turn-key lifestyle, where your trash is picked up at your door and groceries are just a phone call away, said Jacob Sudhoff of Houston-based Sudhoff Properties, which specializes in selling and leasing inner-Loop homes.

This generation — born between the years of 1946 and 1964 — is, in general, aligned with the “empty-nester” point of view, in that they want their living situation to be less hassle and closer to the inner city to avoid a long commute, he said.

In both the rental and condo markets, Houston is seeing larger floor plans in proposed buildings that are marketing to the Baby Boomer generation.

An example of this is seen in the Belfiore high-rise, which will have the largest high-rise floor plans for purchase in Houston when completed.

And with the flood of demand for these properties, higher rents and higher absorption figures are expected in 2014 and 2015, said Jim Wallace, principal and founder of Houston-based WGW Architects Inc.

Alexandria, Va.-based Delta Associates noted at Houston-based Transwestern’s Trendlines event that the two generations, Baby Boomers and Millennials, are making their mark on Houston’s multifamily market.

The Brookings Institution released a report this week saying that Houston is a primary location for millennial relocation and less so for older adults. This, however, does not account for the seniors who currently live in the area and are relocating within the Metro.

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STRONG OCTOBER SALES FURTHER DEPLETE HOUSTON’S HOUSING INVENTORY

11.19.13 by

Home sales push total dollar volume past record set in 2007

HOUSTON — (November 19, 2013) — Twenty-nine consecutive months and counting. That’s how long Houston home sales have held to positive territory. Home buyers sent housing inventory levels down to 3.1 months in October compared to 4.4 months one year earlier, but they also contributed to a record total dollar volume.

According to the latest monthly report prepared by the Houston Association of REALTORS®, home sales climbed 13.5 percent year-over-year, with contracts closing on 6,020 single-family homes. That is the lowest one-month sales volume since March.

The median price of a single-family home—the figure at which half the homes sold for more and half for less—rose 8.9 percent to $177,500. The average price increased 7.9 percent year-over-year to $239,773. Both figures represent the highest prices for an October in Houston.

October brought gains to all housing segments except the under-$80,000 market. Homes selling from $150,000 through $500,000 scored the greatest increase in sales volume.

“Home sales have shown no sign of letting up, which illustrates the strength of the Houston economy and its continued job growth,” said HAR Chairman Danny Frank with Coldwell Banker, United REALTORS®. “Unfortunately, the home buying frenzy has also sparked a recent wave of scams in which for-sale properties are falsely advertised in online listings as rentals with scam artists trying to take advantage of unsuspecting consumers. HAR urges consumers to always work with a REALTOR® and remember that a deal that sounds too good to be true most likely is too good to be true.”

Foreclosure property sales reported in the HAR Multiple Listing Service (MLS) fell 46.9 percent compared to October 2012. Foreclosures currently make up just 7.5 percent of all property sales, down from 19.6 percent at the beginning of the year. The median price of foreclosures edged up 0.9 percent to $85,706.

October sales of all property types in totaled 7,322, a 14.7 percent increase over the same month last year. Total dollar volume for properties sold rose 26.7 percent to $1.7 billion versus $1.3 billion a year earlier. At $17.7 billion total dollar volume for the year, 2013 has already surpassed 2007’s record-setting total dollar volume of $16.6 billion.

October Monthly Market Comparison

Houston’s real estate market experienced gains in all categories in October when comparing sales to October 2012. Total property sales, total dollar volume and average and median pricing all rose on a year-over-year basis,

Month-end pending sales totaled 3,995, a 3.7 percent gain over last year and a strong indicator of another month of positive sales when the November numbers are tallied. Active listings, or the number of available properties, at the end of October dropped 16.5 percent to 31,638.

Houston’s inventory of available homes dipped from 3.2 months in September to 3.1 months in October, down from 4.4 months of inventory one year ago. The inventory of single-family homes across the United States currently stands at 5.0 months, according to the latest report from the National Association of REALTORS® (NAR).

CATEGORIES OCTOBER 2012 OCTOBER 2013 CHANGE
Total property sales 6,385 7,322 14.7%
Total dollar volume $1,334,844,884 $1,690,606,011 26.7%
Total active listings 37,909 31,638 -16.5%
Total pending sales 3,854 3,995 3.7%
Single-family home sales 5,303 6,020 13.5%
Single-family average sales price $222,187 $239,773 7.9%
Single-family median sales price $163,000 $177,500 8.9%
Months inventory* 4.4 3.1 -30.3%
* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

Single-Family Homes Update

October sales of single-family homes in Houston totaled 6,020, up 13.5 percent from October 2012. That marks the 29th consecutive monthly increase.

Home prices reached the highest levels ever recorded in Houston for an October. The single-family median price rose 8.9 percent from last year to $177,500 and the average price climbed 7.9 percent year-over-year to $239,773.

Broken out by housing segment, October sales performed as follows:

  • $1 – $79,999: decreased 28.6 percent
  • $80,000 – $149,999: increased 7.1 percent
  • $150,000 – $249,999: increased 26.1 percent
  • $250,000 – $499,999: increased 23.6 percent
  • $500,000 – $1 million and above: increased 21.3 percent

HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In October 2013, existing home sales totaled 5,160, a 16.2 percent increase from the same month last year. The average sales price rose 6.8 percent year-over-year to $223,446 while the median sales price rose 10.3 percent to $165,500.

Townhouse/Condominium Update

October sales of townhouses and condominiums were up 20.0 percent from one year earlier. A total of 583 units sold last month compared to 486 properties in October 2012. The average price rose 12.5 percent to $189,429 while the median price was flat at $135,000. Months inventory fell to 2.9 months versus 5.0 months in October 2012.

Lease Property Update

Houston’s lease property market showed further growth in October. Rentals of single-family homes rose 9.4 percent compared to October 2012 while year-over-year townhouse/condominium rentals increased 3.2 percent. Average rents retreated slightly from their recent record highs, although they are up year-over-year. The average rent for a single-family home rose 5.4 percent to $1,647 while the average rent for a townhouse/condominium increased 5.2 percent to $1,463.

Houston Real Estate Milestones in October
  • Single-family home sales increased 13.5 percent year-over-year, accounting for the market’s 29th straight monthly increase;
  • Total property sales rose 14.7 percent compared to one year earlier;
  • Total dollar volume climbed 26.7 percent, increasing from $1.3 billion to $1.7 billion on a year-over-year basis; at $17.7 billion total dollar volume for the year, 2013 has already surpassed 2007’s record-setting total dollar volume of $16.6 billion.
  • At $177,500, the single-family home median price reached the highest level for an October in Houston;
  • At $239,773, the single-family home average price also reached an October high;
  • 3.1 months inventory of single-family homes is down from 3.2 months in September 2013 and down from 4.4 months in October 2012 while comparing to the national average of 5.0 months;
  • Sales of townhouses/condominiums rose 20.0 percent year-over-year.
  • Rentals of single-family homes rose 9.4 percent while and townhouse/condominium units increased 3.2 percent.

 

 

More Details Emerge on Exxon Mobil Campus in North Houston

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Next year is the year when Irving, Texas-based Exxon Mobil Corp. will start phasing employees into the company’s new corporate campus in Springwoods Village.

And as that move approaches, more details are emerging of what the 385-acre campus will look like.

“During a typical day, we have about 3,000 workers on site, 16 tower cranes and hundreds of pieces of mobile construction equipment,” Jim Hennesy, project executive for the campus, said in an employee newsletter, exclusively obtained by the Houston Business Journal.

The campus will consist of about 20 office and specialty buildings, which are designed around a central three-acre commons, modeled after great public squares found in Europe and the U.S.

Exxon Mobil’s ‘heart’

The Energy Center, a meeting and training center, will be the largest community space on campus and will serve as the point of entry for visitors and dignitaries.

“The iconic structure will be the symbolic ‘heart’ of the campus and will showcase the corporation’s heritage, people, technology and leadership,” Exxon’s newsletter, The Lamp, says.

The building will feature a 10,000-ton floating cube positioned 80 feet above the plaza and reflecting pool below. The north hall visitor entry will feature a marble staircase with the word “welcome” engraved in the steps in 100 different languages.

A south hall training center will feature the word “energy,” also in 100 languages.

Other facilities include a town hall and auditorium, executive offices and meeting rooms, elegant and causal dining venues, interactive digital displays and a lower outdoor plaza that can host up to 3,500 people for special events.

A major laboratory will support the upstream and downstream businesses. Located in the south area of the campus, the structure, called the Science Quad, will be a research and physical science facility promoting innovation and discovery.

Wellness and child care

A 10,000-square-foot Wellness Center will support the fitness needs of employees and include training rooms with assisted free-weight machines, treadmills, a basketball court and other exercise options.

The campus will also feature an on-site Child Development Center providing childcare and early-education services for children 6-weeks-old to pre-kindergarten. The center has a capacity for about 300 children in 19 classrooms.

“From the start, the campus was designed and is being built for the people who are going to use it,” Bryan Milton, president of ExxonMobil Global Services Co., said in the newsletter.

This central area will be the hub of the development and provide a collaborative space for employees and their visitors.

Exxon Mobil Campus to Open Real Estate Floodgates

11.14.13 by

Next year, Irving, Texas-based Exxon Mobil Corp. (NYSE: XOM) will start phasing its 10,000 employees into the new corporate campus in Springwoods Village.

That means thousands of new homeowners flocking to the area.

Courtesy of PDR Corp. A rendering of a quad on Exxon Mobil Corp.'s new corporate campus in Springwoods Village.

Courtesy of PDR Corp.
A rendering of a quad on Exxon Mobil Corp.’s new corporate campus in Springwoods Village.

Developers such as The Woodlands Development Co., Houston-based Johnson Development Corp. and Spring-based CDC Houston Inc. are scooping up land and building out housing as quickly as builders can lay bricks — but as soon as next year, we may start to see new submarkets emerge as a direct result of the campus.

Exxon Mobil recently released more details on its campus, showcasing the magnitude and scope. It will consist of about 20 office and specialty buildings, which are designed around a central three-acre common, modeled after public squares found in Europe and the U.S.

Other facilities include a town hall and auditorium, executive offices and meeting rooms, elegant and causal dining venues, interactive digital displays and a lower-level outdoor plaza that can host up to 3,500 people for special events.

A 10,000-square-foot wellness center will support the fitness needs of employees and include training rooms with assisted free weights, weight machines, treadmills, a basketball court and other exercise options. The campus will also feature an on-site child development center providing childcare and early education services for children 6 weeks old to pre-kindergarten. The center has a capacity for about 300 children in 19 classrooms.

“From the start, the campus was designed and is being built for the people who are going to use it,” Bryan Milton, president of Exxon Mobil Global Services Co., said in Exxon’s recent newsletter to investors, The Lamp.

Houston Real Estate: 6 Tips For Selling Your Home Fast

11.05.13 by

In a declining real estate market where supply outstrips demand, a person can generally sell a house faster by lowering the price. But there are other ways to enhance a home’s attractiveness besides lowering the asking price. If you’re looking to sell your home in a cooling real estate market, read on for some tips on how to generate interest and get the best price possible.

Differentiate From the Neighbors

In order to attract attention and to make your home more memorable, staging your home for sale, home staging tipsconsider custom designs or additions, such as landscaping, high-grade windows or a new roof. This can help improve the home’s aesthetics, while potentially adding value to the home. Any improvements should be practical and use colors and designs that will appeal to the widest audience. In addition, they should complement the home and its other amenities, such as building a deck or patio adjacent to an outdoor swimming pool.

However, while it can pay to spice up your home, don’t over-improve it. According to a 2013 article in Realtor Magazine, some renovations, such as adding a bathroom or putting new shingles on a roof, might not always pay. The data suggests that the nationwide average amount recouped for a bathroom remodel is about 58%. For a new roof, it’s even less. If you’re going to invest in home improvements, do your research and be sure to put your money into the things that are likely to get you the best return. In addition, if you have added any custom features that you think buyers will be interested in, make sure they are included in the home’s listing information. More than ever, in a down market you should take every small edge you can get.

Clean the Clutter

It is imperative to remove all clutter from the home before showing it to potential buyers because buyers need to be able to picture themselves in the space. This might include removing some furniture to make rooms look bigger, and putting away family photographs and personal items. You may even want to hire a stager to help you make better use of the space. Staging costs can range from a couple hundred dollars for a basic consultation to several thousand dollars, particularly if you rent modern, neutral furniture for showing your home. Many people feel that stagers can make a home more salable, so hiring one deserves some consideration.

Sweeten the Deal

Another way to make the home and deal more attractive to buyers is to staging-your-home-for-sale-1offer things or terms that might sweeten the pot. For example, sellers that offer the buyer a couple of thousand dollars credit toward closing costs, or offer to pay closing costs entirely will in some cases receive more attention from house hunters looking at similar homes. In a down market, buyers are looking for a deal, so do your best to make them feel they’re getting one.

Another tip is to offer a transferable home warranty, which can cost $300 to $400 for a one-year policy and will cover appliances, such as air conditioners and refrigerators, that fail. Depending on the policy, other appliances and house gadgets may be covered as well. A potential buyer may feel more at ease knowing that he or she will be covered against such problems, which could make your home more attractive than a competing home.

Finally, it’s important to note that some buyers are motivated by the option to close in a short amount of time. If it is possible for you to close on the home within 30 to 60 days, this may set your deal apart and get you a contract.

Improve Curb Appeal

Sellers often overlook the importance of their home’s curb appeal. The first thing a buyer sees is a home’s external appearance and the way it fits into the surrounding neighborhood. Try to make certain that the exterior has a fresh coat of paint, and that the bushes and lawn are well manicured. In real estate, appearances mean a lot. What better way to set your home apart than to make it attractive at first glance?

Get Your Home in “Move In” Condition

Aesthetics are important, but it’s also important that doors, appliances and electrical and plumbing fixtures be in compliance with current building codes and in working order. Again, the idea is to have the home in move in condition and to give potential buyers the impression that they will be able to move right in and start enjoying their new home, rather than spending time and money fixing it up.

Pricing It Right

Regardless of how well you renovate and stage your home,staging-your-home-for-sale-3 it is still important to price the home appropriately. Consult a local real estate agent, read the newspapers and go to online real estate sites to see what comparable homes are going for in your area.

It’s not always imperative to be the lowest priced home on the block, particularly when aesthetic and other significant improvements have been made. However, it is important that the listing price is not out of line with other comparable homes in the market. Try to put yourself in the buyer’s shoes and then determine what a fair price might be. Have friends, neighbors and real estate professionals tour the home and weigh in as well.

The Bottom Line

Selling a home in a down market requires a little extra work. Do everything you can to get the home in excellent shape and be prepared to make some small concessions at closing. These tips, coupled with an attractive price, will increase the odds of getting your home sold.

Source

Houston Real Estate: Houston Building Permits On The Rise

10.24.13 by

The number of building permits issued by the city of Houston is creeping back to its pre-recession high.

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The city issued $5.7 billion in permits over the past 12 months, according to data collected by the city’s Department of Public Woks & Engineering, Planning and Development Services. That’s a 22.9 percent increase over the $4.6 billion issued during the same period a year earlier. Last month, the increase was 23 percent.

With housing demand in overdrive, builders have been ramping up development amid solid economic growth. Medical projects, schools and other commercial developments have been on the rise, too.

Residential permits grew by 32.3 percent and non-residential permits were up 17.9 percent, according to the Greater Houston Partnership.

The peak was in 2008 when overall permit activity reached $6 billion for the 12-month period ending in October. The low point was in September 2010 when values were $3.1 billion.

Houston Real Estate News: Hines Plans Large Gated Community Inside the Loop

10.15.13 by

Hines said Tuesday it recently acquired a 46-acre property inside the 610 Loop for a new gated residential development.

Plans for the project — Somerset Green at 6900 Old Katy Road — include about 500 three- and four-story single-family townhomes on small lots, as well as community spaces, such as parks and swimming pools.

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Infrastructure development is expected to start early next year, followed by the first phase of home construction beginning late next year. Coventry Homes, Pelican Builders and Toll Brothers will be building in the first phase, and Preston Wood & Associates is the land planner for the community.

Hines’ portfolio of master-planned communities includes First Colony in Sugar Land, as well as communities in Irving, Texas; St. Augustine, Fla.; Aspen, Colo.; Moscow; and Prague. The firm also has a variety of projects in the works around the Houston area.

A Hines executive recently discussed plans for many of those projects. The company plans to break ground on its 47-story downtown skyscraper at 609 Main in the first quarter of next year, and construction is likely to start on its inner-Loop 17-story office structure at 2229 San Felipe before the end of the year.

On the multifamily front, Hines is working on a 33-story Market Square development with 289 units at 327,000 square feet, as well as a 25-story project in the Museum District with 250 units and 301,000 square feet.

Source

Houston Commercial Real Estate Outlook Positive

10.07.13 by

National consumer confidence is rising in spite of the federal government’s actions, according to Dr. Harold Hunt, a research economist with Texas A&M University’s Real Estate Center. Hunt recently presented an overview on the current economic outlook for real estate decision makers to the Commercial Real Estate Research Forum at HAR.

Opening the presentation with a slide titled “(Most of) the Federal Government is Still Broken,” noting “The NSA (National Security Agency) as the only part of government that actually listens,” Hunt then provided a multitude of statistics and surveys to support his economic outlook.

Focusing on three areas of the economy that could affect commercial real estate, Hunt asked his No.1 question: Is lingering uncertainty over ‘Obamacare’ holding back the economy?

Saying no one knows for certain how health care premiums will be affected, Hunt then cited several major health care providers as projecting consumer premium increases ranging from 40% to 116%. The major providers included United Healthcare, Aetna and Blue Cross & Blue Shield.

Regarding new hiring, however, he cited several studies refuting the belief that uncertainty over health care will adversely affect new hiring. A recent survey by the National Federation of Independent Business reported that a majority of small businesses believe now is a good time to expand and plan on hiring people in the next three months. Another group reported that 32% of companies surveyed said they would be hiring for more new jobs within the next six months; 26% reported hiring for fewer jobs. He also reported that some industries were cutting back workers’ hours to avoid the health care issue but others were attributing cutbacks to lack of demand.

Hunt detailed recent statistics which show consumers are spending more money while holding down their household personal debt and keeping personal savings solid. On the corporate front, banks are reporting stronger loan demand from both large and small firms.

The No. 2 economic harbinger could be the effect on cap rates: Will they increase as much as projected interest rates? Hunt described cap rates as “just a ratio” comparing net operating income divided by purchase price, but said major factors affecting cap rates include the cost of capital, equity’s required rate of return, and certainty and direction of annual property income. He explained that cap rates are perceived to align with interest rates but the reality is that rent and/or income cannot always be increased.

The No. 3 issue: With the slowing of oil and gas employment, is the U.S. economy becoming a drag on Texas and Houston? Hunt said the federal government is hurting some industries such as manufacturing by holding back jobs due to regulatory and tax laws. However, after analyzing each industry’s growth rate derived from Texas Workforce Commission numbers, Hunt showed the Houston Metropolitan Statistical Area (MSA) outperforming the state and nation in the majority of industry categories.

Houston experienced employment growth in all industry categories but one during the past 12 months, according to the Texas Workforce Commission. The Construction industry reported the largest gain with a 7.4% rate increase followed by the Leisure and Hospitality industry at 5.7% and the Mining and Logging industry at 5.5%. The category Other Services recorded the only negative for Houston at -1.5%. Other Services includes those employed in the repair industries, such as car repair, etc., which reflects consumers buying new items rather than repairing older items, Hunt explained.

Concerning the area’s overall job growth, the Houston MSA posted a 3.6% job growth rate for the past 12 months, ranking sixth among Texas MSAs. At the top of the list is Midland at 6.2% followed by Odessa at 5.2%, Fort Worth at 3.9%, and Corpus Christi and Dallas at 3.7%.

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Ranking the Texas MSAs Job Growth
Past 12 Months Ending July 2013

Source: Texas Workforce Commission

Hunt’s overall conclusions for the nation are:

  • Interest rates are likely to increase as the Fed talks more about slowing their bond purchasing (but local cap rates may not be greatly affected).
  • The national economy keeps improving, barring any unexpected international economic downturn.
  • More inactivity from federal government stifles any hope of a robust economic recovery by the American public.
  • Look for slow, positive job growth in 2013-2014.
  • Unemployment should continue trending down.
  • Despite government inaction, business decisions do seem to be occurring.

With regard to Texas and Houston, Hunt’s conclusions are:

  • The sluggish U.S. economy doesn’t seem to be having a marked effect on our state and local economy.
  • Besides manufacturing, other job sectors do seem to be stepping in for slower oil and gas employment.
  • As a result, all areas of commercial real estate should continue to perform well over the next year.

Source

HOME SALES SLOWDOWN? NOT IN HOUSTON, TEXAS!

09.23.13 by

The Bayou City real estate market remains strong as summer gives way to fall

HOUSTON — (September 23, 2013) — You won’t find signs of the traditional autumn slowdown in the Houston real estate market as August provided a 27th consecutive month of positive home sales. Following July’s small uptick in home inventory, buyers once again outpaced sellers in August, sending months of inventory from 3.4 to 3.3 months versus 4.9 months at the same time last year.

According to the latest monthly report prepared by the Houston Association of REALTORS® (HAR), home sales climbed 16.2 percent year-over-year, with contracts closing on 7,504 single-family homes. Monthly home sales volume has topped the 7,000 mark for four straight months, matching levels last seen in the spring of 2007.

The median price of a single-family home—the figure at which half the homes sold for more and half for less—rose 12.8 percent to $186,200. The average price increased 16.4 percent year-over-year to $260,607. Both figures represent the highest prices ever seen in an August in Houston.

August brought gains to all housing segments except the under-$80,000 market. Homes selling from $250,000 through the millions registered the greatest increase in sales volume.

“This has definitely been a summer sales season unlike any we have seen before,” said HAR Chairman Danny Frank with Prudential Anderson Properties. “Our small bump in inventory in July was short-lived as consumers bought faster than homeowners sold in August. It’s difficult to say exactly when Houston’s boiling real estate market will begin to cool down.”

Foreclosure property sales reported in the HAR Multiple Listing Service (MLS) dropped 47.0 percent compared to August 2012. Foreclosures currently make up just 7.7 percent of all property sales, down from 19.6 percent at the beginning of the year. The median price of foreclosures jumped 12.6 percent to $90,055.

August sales of all property types in totaled 8,908, a 16.4 percent increase over the same month last year. Total dollar volume for properties sold shot up 35.6 percent to $2.2 billion versus $1.6 billion a year earlier.

August Monthly Market Comparison

Houston’s real estate market enjoyed positive indicators across the board in August when comparing sales to August 2012. On a year-over-year basis, total property sales, total dollar volume and average and median pricing all increased.

Month-end pending sales totaled 4,363, a 1.5 percent gain over last year and a smaller increase than the market has experienced in many months. While that ordinarily might suggest a tapering in sales activity in the subsequent month, it is most likely symptomatic of homes selling so quickly that they never attain “pending” status. Active listings, or the number of available properties, at the end of August declined 18.9 percent to 32,834.

Houston’s inventory of available homes dipped from 3.4 months in July to 3.3 months in July, down from the year-ago level of 4.9 months of inventory. The inventory of single-family homes across the United States currently stands at 5.1 months, according to the latest report from the National Association of REALTORSâ (NAR).

CATEGORIES AUGUST 2012 AUGUST 2013 CHANGE
Total property sales 7,652 8,908 16.4%
Total dollar volume $1,640,672,396 $2,225,063,198 35.6%
Total active listings 40,540 32,834 -18.9%
Total pending sales 4,298 4,363 1.5%
Single-family home sales 6,457 7,504 16.2%
Single-family average sales price $223,858 $260,607 16.4%
Single-family median sales price $165,000 $186,200 12.8%
Months inventory* 4.9 3.3 -33.7%
* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

 

Single-Family Homes Update

August sales of single-family homes in Houston totaled 7,504, up 16.2 percent from August 2012. That marks the 27th consecutive monthly increase.

Home prices achieved the highest levels ever recorded in Houston in an August. The single-family median price rose 12.8 percent from last year to $186,200 and the average price climbed 16.4 percent year-over-year to $260,607.

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Broken out by housing segment, August sales performed as follows:

  • $1 – $79,999: decreased 38.6 percent
  • $80,000 – $149,999: increased 0.7 percent
  • $150,000 – $249,999: increased 25.7 percent
  • $250,000 – $499,999: increased 39.0 percent
  • $500,000 – $1 million and above: increased 51.2 percent
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HAR also breaks out the sales performance of existing single-family homes throughout the Houston market. In August 2013, existing home sales totaled 6,679, a 20.8 percent increase from the same month last year. The average sales price rose 16.6 percent year-over-year to $248,720 while the median sales price rose 14.2 percent to $177,000.

Townhouse/Condominium Update

August sales of townhouses and condominiums climbed 13.9 percent from one year earlier. A total of 665 units sold last month compared to 584 properties in August 2012. The average price rose 20.4 percent to $204,908 while the median price increased 14.6 percent to $150,000. Months inventory was 3.2 months versus 5.6 months in August 2012.

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Lease Property Update

Houston’s lease property market remained healthy in August. Rentals of single-family homes rose 10.3 percent compared to August 2012 while year-over-year townhouse/condominium rentals were flat. Rents crept up to record highs with the average monthly lease of a single-family home reaching $1,748 and the average monthly lease for a townhouse/condominium reaching $1,507.

Houston Real Estate Milestones in August
  • Single-family home sales increased 16.2 percent year-over-year, accounting for the market’s 27th consecutive monthly increase;
  • Total property sales rose 16.4 percent compared to one year earlier;
  • Total dollar volume jumped 35.6 percent, increasing from $1.6 billion to $2.2 billion on a year-over-year basis;
  • At $186,200, the single-family home median price reached the highest level for an August in Houston;
  • At $260,607, the single-family home average price also reached an August high;
  • 3.3 months inventory of single-family homes is down from 3.4 months in July 2013 and down from 4.9 months in August 2012 while comparing to the national average of 5.1 months;
  • Sales of townhouses/condominiums rose 13.9 percent year-over-year.
  • Rentals of single-family homes rose 10.3 percent while and townhouse/condominium units were flat.
  • Rents reached record highs of $1,748 for single-family leases and $1,507 for townhouse/condominium leases.

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