Home sales in Houston remained steady throughout May amid a changing market
According to the Houston Association of Realtors (HAR) May 2022 Market Update, Houston saw several key changes in last month’s activity. Here are the highlights you need to know.
- With robust buyer demand from consumers and investment companies fueling Houston’s busy real estate market, single-family home sales moved at a healthy pace with properties across town getting snatched up almost as quickly as they were listed. Amid both increasing home prices and mortgage interest rates, buyer demand remained strong into May.
- While single-family home sales dropped 0.9 percent year-over-year from 9,714 units last year to 9,627 units, the market is still ahead of last year’s record-setting volume by 4.4 percent.
- Inventory rose to its highest level of the year to 1.6 months of supply. A rate like this hasn’t been seen since October 2021 when there were 1.7 months of supply. By comparison, 6 months of inventory is considered a neutral market where neither buyers nor sellers are at an advantage.
- Homes priced between $500,000 to 1 million showed the largest year-over-year sales volume gain at 38.3 percent, closely followed by a 30.2 percent increase for luxury properties priced from $1million and above.
- The average price for a single-family home rose by 14.3 percent to $440,670. For perspective, the average price first broke the record of reaching $400,000 earlier this year in March.
- The median price for a single-family home rose by 16 percent to $351,000.
- The time it took to sell a home dropped to 29 days compared to 35 in the year prior.