Houston Real Estate Market Report June 2020

According to the latest monthly Market Update from the Houston Association of Realtors, pent-up demand resulting from stay-at-home orders and COVID-19 helped boost home sales in June. However, renewed coronavirus concerns from the recent spikes in Texas and across the greater Houston area, may bring this sale normalcy to an end by the fall.

The report noted 9,328 single-family homes sold in June compared to 8,063 a year earlier. That was a 15.7 percent jump – a strong rebound from two straight months of declines brought on by coronavirus and ongoing strains in the energy industry. Homes priced between $250,000 and $500,000 led the way among all housing segments, rising more than 28 percent year-over-year.

The single-family home median price increased 3.6 percent to an historic high of $262,000 while the average price dipped less than one percent to $319,881. Sales of all property types also increased more than 18 percent from last June, totaling 11,153 units.

“Coronavirus has driven the Houston housing market into uncharted territory, however, we do know for certain that consumers have shown unwavering interest in real estate since the pandemic began,” said HAR Chairman John Nugent with RE/MAX Space Center. “HAR’s early introduction of virtual open houses and virtual showings has enabled consumers to forge ahead with house-hunting plans without compromising health and safety, and historically low interest rates have remained a strong incentive to buy.”

June Monthly Market Comparison

Pent-up demand resulting from coronavirus-related stay-at-home orders in March and April helped boost pending listings in May, paving the way for a surge in closings in June that drove sales volume up to levels typically seen in Houston over a COVID-free summer. Single-family home sales, total property sales and total dollar volume all rose compared to June 2019. Pending sales rocketed 39.3 percent, suggesting the likelihood of another strong sales month for July. Total active listings, or the total number of available properties, fell 17.5 percent.

With an ongoing slowdown in new listings to the marketplace and an increase in homes going under contract, single-family homes inventory shrank to a 3.2-months supply in June versus 4.3-months a year earlier. For perspective, housing inventory across the U.S. stands at a 4.8-months supply, according to the most recent report from the National Association of Realtors (NAR).

Houston Real Estate Highlights in June

Single-family home sales rebounded from two consecutive monthly declines, jumping 15.7 percent year-over-year with 9,328 units sold;
The Days on Market (DOM) figure for single-family homes grew from 50 to 56 days;
Total property sales soared 18.3 percent with 11,153 units sold;
Total dollar volume climbed 15.1 percent to $3.3 billion;
Single-family home sales rebounded from two consecutive monthly declines, jumping 15.7 percent year-over-year with 9,328 units sold;
The Days on Market (DOM) figure for single-family homes grew from 50 to 56 days;
Total property sales soared 18.3 percent with 11,153 units sold;
Total dollar volume climbed 15.1 percent to $3.3 billion;
The single-family home median price set a new record high of $262,000 as it rose 3.6 percent year-over year;
The single-family home average price declined 0.6 percent to $319,881;
Single-family homes months of inventory was at a 3.2-months supply, down from 4.3 months last June and below the national inventory level of 4.8 months;
Townhome/condominium sales reversed three monthly declines, rising 1.9 percent, with the average price down 5.4 percent to $212,216 and the median price down 1.8 percent to $174,350;
Single-family home rentals jumped 15.3 percent with the average rent down 1.0 percent to $1,906;
Volume of townhome/condominium leases was unchanged with the average rent up 7.9 percent to $1,731.

Houston Real Estate Market Report June 2020