Low interest rates spurred customers to purchase high-end homes at rates never before seen in April, sending prices to new highs while keeping inventory at historic lows, the Houston Association of Realtors has reported.
Single-family home sales were up 47.4% in April of this year compared to April 2020 with 9,105 units sold versus 6,175, according to the group’s May market update, released May 12. That represents the biggest one-month year-over-year sales volume increase of all time, and the market’s eleventh consecutive positive month of sales.
“In my 20 years in real estate, I have never seen such dramatic forces sweeping across the Houston housing market as we have experienced since the coronavirus pandemic began,” said HAR Chairman Richard Miranda with Keller Williams Platinum in the news release. “The market is humming along at a record pace, fueled by low mortgage rates despite dwindling inventory and rising prices. However, without a healthy boost in new listings in the weeks and months ahead, the current pace of sales cannot be sustained.”
Leading the charge for sales volume were homes priced from $750,000 and above, with a 164.3% year-over-year increase, followed by the $500,000-$750,000 segment, with an increase of over 132%.
Meanwhile, the single-family home average price rose 20% to $371,854, while the median price increased 17.6% to $295,000, from $250,943 a year ago.
Despite inventory for single-family homes increasing by 26.8%, strong buyer demand and surging sales dropped inventory levels to a 1.4-months supply versus 3.4 months a year ago.
HAR: Houston-area home sales in April up 47% compared to last year
Single-family home sales were up 47.4% compared to last April with 9,105 units sold versus 6,175 a year earlier. (Courtesy Houston Association of Realtors)