After a strong showing like our local housing market had in April, the big question was whether it could maintain what is thus far a record-setting pace relative to 2016 — and for many of our local markets, it appears the answer was a resounding ‘Yes,’ with one of the most stable markets continuing to hum along without breaking stride.
May marked another month of strong consumer activity and growing inventory in the greater Houston market. However, following an April which saw local 77008 (Heights, Timbergrove/Lazybrook) and 77018 (Garden Oaks/Oak Forest) markets experience a strikingly similar trend, the two zip codes diverged a bit in May on nearly all fronts.
According to a report from the Houston Association of Realtors, the 77008 area saw nearly 12 percent more single-family homes sold in 2017 (106) than in the same month in 2016 (95), while 77018 stayed flat, with 55 homes sold in May 2017 as opposed to 57 during the same time frame in 2016 (a 3.5 percent decrease).
A total of 8,156 single-family homes sold in May versus 7,315 a year earlier, according to the latest monthly report produced by the Houston Association of Realtors (HAR). That represents an 11.5 percent increase. Year to date, home sales are ahead of 2016’s volume by 7.4 percent. New listings elevated inventory levels from a 3.6-month supply to 4.1 months, the highest in nearly five years according to the report — lending credence to the theory that Houston remains one of the more stabilized markets in the state.
The greatest sales gains took place among homes priced from $750,000 and above (categorized as the luxury market), followed by homes in the $150,000 to $249,999 range. May marked the seventh consecutive month of rising sales in the luxury segment.
“The Houston housing market had another strong showing in May with sales and rental properties alike, and inventory continues to accommodate the growing demand,” HAR Chair Cindy Hamann with Heritage Texas Properties said in a release. “If we can maintain this pace, there’s no doubt that 2017 will be a record year for Houston real estate.”
Both the 77008 and 77018 markets experienced a spike in average home price, with 77008 experiencing the greatest hike, coming in at just a little less than an 11 percent increase, going from just under $499,000 to a shade over $552,000. On the other side, 77008’s prices held fairly steady in rising to a touch over $475,000.
Finally, median home prices in our local neighborhoods mimicked the sales loss, with Garden Oaks and Oak Forest seeing prices drop to exactly $363,000 from $382,500 during May 2016 and the Heights seeing a 3.5 percent spike to $456,000 from 2016 to 2017.
On the whole, Houston’s single-family home median price climbed 4.4 percent to $235,000, marking the highest median price of all time, while the average price rose 4.3 percent to $302,362 — the second highest average ever. May sales of all property types in Houston totaled 9,744, up 12.3 percent from the same month last year, and total dollar volume for properties sold in May shot up 17.4 percent to $2.8 billion.