Despite falling oil prices, Houston's housing market keeps rising
January 2016 shows growth from last year
The Houston housing market started off with high sales volume for the beginning of the year.
Strains in the energy industry did not hinder the housing market as January 2016’s sales were only 2% off the January record. Although total property sales remain unchanged, single-family homes priced between $150,000 and $250,000 saw a nine percent increase, according to the Houston Association of Realtors.
"A lot of folks have nervously anticipated that falling oil prices would have a devastating effect on real estate, but so far, the Houston market has weathered the energy downturn without dramatic shifts in sales and pricing,” said HAR Chairman Mario Arriaga with First Group. “The most noticeable impact has been declines in the luxury market, but mid-range housing actually saw a healthy sales volume in January and inventory levels grew. HAR will continue to closely monitor the economic climate."
January single-family home sales were down 2.1% versus January 2015 with 85 less sales, according to the latest monthly report by the Houston Association of Realtors. An increase in new listings helped buoy a growth in inventory from a 2.5-months supply to 3.3 months.
About 23,200 jobs were added across the Houston metropolitan area in 2015, an increase of less than 1%, according to the Texas Workforce Commission. GHP is forecasting the creation of about 22,000 jobs in 2016.
The average single-family home price reached $262,663 in January. The figure at which half of the homes sold for more and half sold for less rose to 200,000, an increase of 5.3 percent. Both figures represent all time highs for a January in Houston, according to HAR.
Compared to 2015, January 2016 ended with mixed indicators. On a year-over-year basis, single-family homes sales declined slightly, total property sales and total dollar volume were flat and average and median sales prices rose, according to the article.
This chart from the article shows some of the changes to the Houston housing market from January 2015 to January 2016:
Click to enlarge
(Source: Houston Association of Realtors)
Sales of townhouses and condominiums has risen 15.6 percent in January, according to the article. A total of 393 units sold compared to 340 properties in January 2015. The average price was flat at $183,076 and the median price edged up 2.4 percent to $140,000. Inventory grew from a 2.4-months supply to 3.0 months.