Home sales continue their positive momentum but constrain inventory levels in the process.

HOUSTON — (November 8, 2017) — The Houston real estate market showed continued resiliency in the aftermath of Hurricane Harvey, with home sales and rentals in positive territory for a second consecutive month in October. However, the strong demand combined with flood-damaged homes previously pulled off the market, constrained housing inventory which had finally reached more balanced levels before the storm struck in late August.

According to the latest monthly report prepared by the Houston Association of Realtors (HAR), single-family home sales rose 7.5 percent, marking a further recovery since Harvey’s assault. All segments of the housing market experienced gains except for homes priced below $150,000. The greatest sales volume was observed among homes priced at $750,000 and above. On a year-to-date basis, home sales remain 2.8 percent ahead of 2016’s volume even as some flood-ravaged neighborhoods continue to rebuild.

Housing inventory edged up from a 3.8-months supply in October 2016 to 3.9 months this October. However, that is down from the 4.3-months peak reached in the weeks immediately preceding Harvey.

The single-family home median price (the figure at which half of the homes sold for more and half sold for less) increased 3.9 percent to $226,491. The average price rose 2.7 percent to $285,858. Both figures represent records highs for an October.

"The overall Houston real estate market wasted little time recovering from Hurricane Harvey's devastation, but we’d like to see supply grow to meet ongoing consumer demand for housing," said HAR Chair Cindy Hamann with Berkshire Hathaway HomeServices Anderson Properties. "Hopefully, more balanced inventory levels can be restored by early in the new year."

October sales of all property types in Houston totaled 7,614, an increase of 6.6 percent versus the same month last year. Total dollar volume climbed 10.8 percent to $2.1 billion.

Houston Real Estate Highlights in October

Single-family home sales continued their post-Hurricane Harvey rebound as volume rose 7.5 percent year-over-year with 6,381 units sold;
Single-family home sales remain 2.8 percent ahead of 2016’s year-to-date volume;
Total property sales increased 6.6 percent with 7,614 units sold;
Total dollar jumped 10.8 percent to $2.1 billion;
The single-family home median price rose 3.9 percent to $226,491, which represents an October high;
The single-family home average price increased 2.7 percent to $285,858, also the highest level for an October;
Single-family homes months of inventory grew year-over-year to a 3.9-months supply, but is down from a 4.3-months pre-Harvey peak – the result of a surge in consumer demand for housing;
Townhome/condominium sales rose 5.8 percent, with the average price down 1.1 percent to $195,393 and the median price down 3.1 percent to $153,000;
Leases of single-family homes rose 13.6 percent with the average rent up 2.8 percent to $1,776;
Volume of townhome/condominium leases jumped 34.8 percent with average rent up 2.9 percent to $1,533.
HAR still encourages anyone who has housing available for temporary occupancy (up to 12 weeks) to please post it on our Harvey Temporary Housing page at www.har.com/temporaryhousing to provide housing to those in need.

For the full October MLS Report, click here.