Trends 2021 – Housing Market of Houston – Describing August
After witnessing good sales in the last 13 months in Houston, August data had positive volumes, better levels of inventory, and price moderation. But compared to the previous year, the prices were on the higher side. An optimistic buyer sentiment and the inclusion of new listings made these trends bullish.
It became difficult in the closing of July 2020 to handle the volume of the unprecedented surge. The high demand was because of the backlog caused by the market disruption during the Covid Pandemic.
The Houston Association of Realtors has provided the market update for August 2021. As per the Association, the single-family home saw an 8.5% jump. The data shows the unit sold was 9,890 in August 2021 that was 9,118 for August 2020 YTD.
The local home sales went up by 17.4 % as compared to last year. The overall property on year-over-year sales increased by 9.2%, reaching a total of 12,036. It brought the total volume of the dollar to $4.3 billion, a surge of 26.7 % in August.
The home costing between $500000-750000 witnessed an increase in the sale volume of 48.5 percent on a year-over-year basis. The data shows a 31.8 percent increase in the house cost in the range of two and a half lakh USD to five lakh USD.
The sale increased by 30.5% in luxury housing costing 0.75 million dollars. A single home price stands at $380,233, with the average price going up by 14 percent. The prices have come down post-touching the highs in June.
The active listing, or else you can say the number of properties available, saw a decline of 14.4 percent year-over-year. The inventory of single-family homes can match the demand of the next 1.9 months as of August. With new listings touching an increased volume of 10.9 percent has a supply that can last for 2.6 months. Single-family real estate investments, such as Montrose Houston apartments, are getting good responses from buyers.
The Close to Original List Price Ratio of June clocked 100.3 percent. Many buyers buy the property by paying more than the list price. In July it became 100.2 percent and a further decline in August to 99.6%. The reports confirm that the trend of high-dollar buying is cooling.
2020 Housing Market Performance of Houston
The 2020 Real Estate Market of Houston was a record-breaker despite Covid-19. The properties sold stand a whopping $35.3 billion. It saw a jump of 10% in sales of the single-family home as compared to 2019. The annual report of the market by HAR 2020 shows an overall property sales totaling 115,523 that is an increase of 11.6% better than 2019. In history, it was only the second time in which sales surpassed one lac level.
The month of December saw a record-breaking average price of 0.347 million dollars and the record-breaking median price of 0.273 million dollars. It was a bull run for the Houston Real Estate market of 2020 that overtook the pace of 2019. The inventory available in the market on an average was 56 days. It came down to 46 days in 2020.
Many of the local agents feel that the sales are happening at a high speed as consumers are taking advantage of decreased mortgage rates. So it seems the two reasons for the Houston Market to be bullish in 2021 are home scarcity and low mortgage prices.
2021-2022 – Forecast of Real Estate Market of Houston
Houston carries the history of the best real estate market for the long term in the U.S. The value of homes in Houston witnessed 91.2 % appreciation since September 2011 – Zillow Home Value Index.
ZHVI takes into consideration the entire housing stock. It never focuses only on the sales and the list for a particular month. In Houston, the typical value of a home currently stands at $235,559. The value of homes in Houston has risen to 17.3 % in the past twelve months.
The Houston Real Estate jumped to almost 60% in the last decade as per the data of neighborhoodscout.com. The year-on-year appreciation is touching the average of 4.83%. During the past four quarters, the appreciation in Houston Real estate was close to 4 percent. And in the last quarter, it jumped to 0.5%. The steadiness in the market would make it reach 2.03% on an annualized basis.
Zillow is also forecasting in a similar direction – a bullish trend in the real estate market for the upcoming year. It is a sign of increased demand in 2021. Therefore, it is the correct time to invest in a house in Houston. The supply of home inventory is limited in Houston. And the competition in the buyer is making the price jump benefiting the sellers.
Investment Outlook – Houston Housing Market
The real estate market of Houston remained hot for many years for the country. Houston is the best market for investment in rental properties. The metro area of Houston provides ample opportunities for individuals seeking investment in a stable market. It offers growth in equity and cash flow at a cost that remains under the replacement value.
The sales volume achieved a double-digit in February 2020 though the shape of the local economy did not look good due to the oil prices nosedive. The oil price affects the real estate market of Houston. The plunge in oil prices often brings down the economy of Houston. Leaving the price of oil aside, the real estate market of Houston looks bullish in 2021.
The real estate market in a balanced condition will have a supply of five to 6 months of inventory. The real estate market of Houston can become a buyer’s market if the inventory supply is for over five months. But as of now, the possibility is remote. And that is why the real estate market of Houston will stay strong and in favor of sellers.
It is vital to time the local market if you are planning to buy or sell real estate. Although, the appreciation has slowed down in the Houston real estate market. But factors such as low unemployment rate, strong economy, and low supply of house inventory in the market will make the price rise in Houston real estate.