Houston's housing market continued to see more sales growth in August, but with fewer listings going up, the inventory has reached its lowest level in five years, according to the Houston Association of Realtors.

“August was the third straight positive month for Houston real estate, but with a dwindling supply of homes entering the market, we expect sales volume to resume a more normalized pace for this time of year,” HAR Chair John Nugent with RE/MAX Space Center said in HAR's monthly report. “Consumers can still benefit from record low interest rates, however constrained inventory doesn’t offer them many housing options, which is unfortunate.”

Total active listings dropped 23% in August, according to the HAR, bringing the region to a 2.8-month supply compared to 4.1 months seen last year.

In August, the Greater Houston area saw a 6% year-over-year increase in single-family home sales with 9,195 properties sold in the month. This marked the third consecutive month of growth coming out of a spring slump triggered by the coronavirus pandemic.

Double-digit increases among homes valued at $250,000 and higher were set back slightly by decreases in home sales below that price point.

High-end homes valued above $750,000 saw a 40.3% increase; those between $500,000 and $750,000 saw a 34.4% increase; and homes in the middle bracket, $250,000 to $500,000, saw an 18.3% increase in homes sold.

Prices also saw increases, with the single-family home median price up 7.6% to $269,000, while the average price rose 7.8% to $334,256—record highs for an August and second-highest on record overall.

Year-to-date sales are running 2.8% ahead of 2019.

Rental properties, meanwhile, saw decreases in activity with new single-family and condominium leases falling by around 13%-14% in August.