Sales volume enters negative territory for the first time in seven months

The Houston real estate market experienced its first sales slowdown since Hurricane Harvey last August, as 6,810 single-family homes sold in March versus 6,982 a year earlier. That represents a 2.5-percent decline. The rental market also saw waning consumer interest for both single-family homes and townhomes/condominiums. However, inventory of homes for sale reached the most plentiful level in four months.

According to the latest monthly report from the Houston Association of REALTORS® (HAR), the best-performing segment of the market consisted of homes priced in the $500,000 to $749,999 range, which rose 7.0 percent. The luxury market – those homes priced at $750,000 and above – was flat for the second month in a row.

Home prices reached the highest levels ever for a March. The single-family home median price (the figure at which half of the homes sold for more and half sold for less) increased 2.4 percent to $233,500 and the average price climbed 3.0 percent to $292,756.

“We were a bit surprised that sales slowed during the lead-up to the traditional spring buying season, but are pleased to see that inventory levels have improved,” said HAR Chair Kenya Burrell-VanWormer with JPMorgan Chase. “It’s possible that consumers are hesitant to buy in light of recent stock market volatility and how that might affect their personal finances.” March sales of all property types in Houston totaled 8,274, a decline of 2.3 percent versus the same month last year. Total dollar volume grew 0.7 percent to $2.3 billion.

Lease Property Update

Property rentals were down in March. Single-family home leases fell 9.0 percent while leases of townhomes and condominiums dropped 13.1 percent. The average rent for single-family homes rose 6.0 percent to $1,748 while the average rent for townhomes and condominiums edged up 0.7 percent to $1,496.

March Monthly Market Comparison

The Houston real estate market achieved mixed results for the month of March, with single-family home sales and total property sales down while pricing and total dollar volume were up compared to March 2017. Month-end pending sales for single-family homes totaled 8,327, up 9.5 percent from last year. Total active listings, or the total number of available properties, fell 4.6 percent to 35,004.

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