THE HOUSTON REAL ESTATE MARKET ENDS 2015 WITH THE
SECOND-HIGHEST SALES VOLUME OF ALL TIME
Slumping oil prices and limited inventory slow home
buying for a third straight month in December
HOUSTON — (January 2016) — Houston
real estate faced a stiff challenge in 2015. It followed the best year on
record for home sales. Add plunging oil prices and the resulting layoffs into
the mix along with persistently low levels of housing inventory, and the result
was the drop in sales that economists had forecast. While there were
single-digit declines in sales volume at different times throughout the year,
more substantial ones struck during the fourth quarter, including December.
Nonetheless, the total number of 2015 single-family home sales as well as sales
of all property types achieved the second-highest levels of all time, behind
2014.
December single-family home sales slid 9.7 percent versus
December 2014 while total property sales dropped 9.9 percent. The latest
monthly report prepared by the Houston Association of Realtors (HAR) shows a
total of 5,879 single-family home sales compared to 6,507 a year earlier. The
sales slowdown did allow inventory to grow from a 2.5-months supply, the lowest
level of all time, to 3.2 months. Homes priced between $150,000 and $500,000
saw flat year-over-year sales, while homes below $150,000 and above $500,000
experienced declines.
"With oil dropping to levels around $30 a barrel, I
think it’s fair to say that the Houston housing market is going to remain cooler
for at least a little while,” said HAR Chairman Mario Arriaga with First Group.
“The good news is the local economy is vastly more diversified than it was
during the oil bust of the 80s and other industries are continuing to hire, so
it really is going to come down to consumer confidence."
A year ago, Houstonians were hailing a surge in employment
that drew home buyers and renters from across the U.S. and around the world. By
contrast, the latest Texas Workforce Commission report states that the Houston
metro area added just 4,800 jobs in November, making it the third weakest
November in 25 years, according to the Greater Houston Partnership, which notes
that the region typically adds 10,000 to 12,000 jobs in the month.
In December, the single-family home average price dipped a
fractional 0.6 percent year-over-year to $280,201 while the median price—the
figure at which half of the homes sold for more and half sold for less—rose 2.9
percent to $216,000. The median figure represents an all-time high for a
December in Houston.
Deborah Bevers, Realtor, ASP
Walzel Properties, LLC
9595 Six Pines #8210
The Woodlands, TX 77380
DeborahMBevers@gmail.com
Serving Montgomery County and North Harris County, TX
To view current homes on the market click here.
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Houston Association of REALTORS® www.har.com
