“We are grateful for two consecutive months of strong activity across greater Houston, however we do not consider the current pace of home sales sustainable given the shrinking supply of homes and expect business to taper a bit this fall,” said HAR Chairman John Nugent with RE/MAX Space Center in a news release.
Home sales hit nearly 11,000, up from more than 8,900 a year ago as the real estate market experienced a surge in closings that went under contract after the lifting of COVID-19 stay-at-home measures. The month also set a record high median price for single-family homes, $271,830, an 8.7% year-over-year increase.
However, the total number of available properties on the market fell 19.4% compared to a year ago as the supply of homes has dwindled due to home sellers holding back amid the ongoing COVID-19 pandemic, according to the HAR.
Homes priced between $500,000-$750,000 registered the biggest jump in sales in July, with 52% more transactions compared to sales seen a year ago. The $750,000 and above market saw an almost 42% increase, while home sales between $250,000-$499,999 increased 37%.
Market segments on the low end, however, did not see improvements.
The number of homes sold in the $100,000-$150,000 segment decreased 29% compared to last year, while the $1-$99,999 segment recorded a 20% drop.
Still, high sales in the mid- to high-end markets raised single-family home median prices 8.7% to $271,830 compared to last year, while the average price climbed 8.5% to $338,350.