2017 Annual Review Market Update
Hey Friends, as we start 2018, January reminds us to look back, so we can move forward. So, in this edition of the Houston Real Estate Market Update, we’ll look back at what happened in 2017 and look ahead to what’s in store for Houston in 2018.
Contrary to what some may believe 2017 was actually a fantastic year for real estate in Houston and despite all the adverse effects of the hurricane that must not be named, Houston sold 3.5% more homes in 2017 then it did 2016.
As I talked about all year prices are up in 2017. The average sales price jumped up 2.9% from 2016 to just over two-hundred and ninety-one thousand dollars for average sales price of a single-family home.
This led to the highest dollar volume sold in Houston to just over twenty-three billion dollars which is an increase of 6.5% higher from last year.
So, it was a great year in Houston to sell a house as it was and continues to be a seller’s market in most areas of Houston.
So now, what’s to come in 2018? Dr. James P. Gaines of the Real Estate Center at Texas A&M University is projecting that 2018 is going to be even better than 2017 as there are no foreseeable forces to stop Texas’ growth.
Energy prices are rising, jobs are predicted to grow at 2.3% this year. The Texas population is continuing to grow, and Dr. Gaines even predicts a rebound from Hurricane Harvey… I mean what Harvey?… what… I mean… this storm.
Finally, mortgage interest rates are expected to rise throughout 2018 to land somewhere around 4.5% for a 30-year fixed rate. While its not a huge increase it will definitely impact the new buyers and monthly payments.
That’s it for the Houston Real Estate Market 2017 annual review and 2018 preview, thanks and all the best.2017 Annual Review
November 2017 Market Update
Hey Friends, welcome to another edition of The Holub Team Market Update for the month of November.
The Houston real estate market is up for three consecutive months after Harvey we’ve had positive gains in the number of homes sold, the average sales price and the total dollar volume. TAKE THAT HARVEY!!
The numbers saw just over 6100 single-family homes sold which is an increase of 7.4% from this time last year. The average sales prices set an all-time record high for the month of November at just over $284,000. Home inventory is at 3.7 months which is lower than it was the summer but higher than is was this time last year. Looking back at the 2017 year today, homes sales are up 3.3% from 2016. That’s despite the drop-in sales in August due to the flooding.
Looking ahead the summer numbers should continue that positive trend as pending home sales are up 17.4%. The Fed had a rate hike of one quarter of one percent in the month of December, but interest rates stayed about the same as lenders already factored that into their loans.
That’s all from The Holub Team Market Update Have a Merry Christmas and a Happy New Year.November 2017
October 2017 Market Update
Hey Friends, welcome to another edition of the Holub Team Market Update for the month of October.
Well thanks for tuning in Houston, you World Champions you! Well not only was October a fantastic for out Astros, it was also a great month for Houston real estate. So, if you look back September was a significant month to see how the real estate market would be impacted as we all work through Hurricane Harvey. Now, October, is our first month “back to normal” to see how the real estate market is going to respond. Well the numbers are in, we knocked that hanging slider right out of the park, as we sold just under 6,400 single-family homes which is a 7.5% increase. We set an all-time average sales price record for the month of October at just under $286,000 which is an increase of 2.7% from this time last year.
Single-family home levels drop from their high this year in July at 4.5 months down to the current levels of 3.9 months in the month of October. Your conventional 30-year fixed rate is hovering about four and a quarter and your 15-year conventional fixed rate is about 3.75%.
Well it looks like we should see this win streak continue of higher homes sales and lower inventory because we had a 20% increase in pending homes in the month of October. The pending home is the house that was on the market, a buyer made an offer, it’s been accepted and they’re just working their way through the closing. So that means that we should have more homes selling in the next couple months.
So, to sum it up, it’s still a sellers’ market with prices popping up and inventory blown away Houston looks to finish up 2017 Houston Strong.
Well that’s all for the Holub Team Market Update for the month of October. Go Astros!October 2017
September 2017 Market Update
Hey Friends, welcome to another Holub Team Market Update for the month of September.
Well the numbers are in for the month of September and on the heels of hurricane Harvey we had a strong showing for the Houston real estate market. We had an increase in the number of homes sold at 3.4% to 8,150 homes. We also saw the average highest sales price ever for the month of September to just under $292,000.
So, as I talked about last month we had a large drop in the number of homes sold in the month of August mostly due to hurricane Harvey. So, it’s most likely that a lot of these homes that were going to close in August got pushed back to September so that’s one reason why we’ve seen more homes sold in September this year. So, we’ll get a better idea of the market in the next couple months.
Great news is that we’ve seen an increase in the number of pending homes in the month of September. The pending house is a home that’s been on the market and it’s under contract, it’s just kind of going through the process waiting to close. So that bodes well for home sales in the next couple months.
So, the rental market saw an increase of 84% homes rented this month as compared to this time last year which is a substantial number unfortunately it was due to many people flooded out trying to find a temporary place to live and rebuild their house. Good news is that the average rent price is only increased 7% from this time last year so despite the massive demand prices still remain about the same.
Home inventory levels drop from 4.4 months of inventory in August to 4.1 in September. So, the drop is probably due from a lot of the flooded homes being pulled from the market and also from the strong number of sales we saw in September.
So, talking about interest rates, the 30-year fixed conventional loan is hovering about 4.12% for great qualified buyers and for the 15-year fixed you’re looking about 3.6%. There’s some talk about interest rates jumping up a little bit in December but we’ll see what happens, no one really knows what the Fed will do.
Thanks again, that’s all for The Holub Team Market Update for the month of September, all the best.September 2017
August 2017 Market Update
Hey friends, Paul Holub here with another Holub Team Market Update for the month of August.
Hurricane Harvey dumped the most amount of rain ever seen in the US by a single storm. Despite that Houston remains strong. Thousands of volunteers from Houston and around the US have conversed to help those affected by to rebuild our city and restore our hope.
As you can imagine, home sales are dramatically impacted in August from hurricane Harvey. We saw a 25% fewer homes in August of 2017 then we did in August of 2016 at just under 6,000 homes. A lot of that’s due to a lot of closings happen towards the end of every month and hurricane Harvey came at the end of August so all these closings that would naturally have happened are pushed back to September. Unfortunately, some of those won’t happen due to the flooding.
Well despite Harvey who actually had an increase of active listings and rather that being a result from the flood, it’s more of a trend we’ve seen throughout 2017 with more and more homes coming on the market and even though we have more homes coming on the market, prices continue to increase. The average sales price for single-family homes in August was just over 296,000 dollars, which is an increase of 26%.
Finally, as you sort through the rebuilding process the Houston real estate market is going to be very interesting to watch. Obviously, investors are gonna be buying up homes and FEMA at some point will be buying homes. The big question for homeowners that have flooded is “what are you going to do with your property?”. Are majority of these homeowners going to remodel it and move back in? Or are more of them going to decide to sell? Whether that’s as is or in a couple of months after its been remodeled or even years. Depending on the answer to that question we could see large amounts of homes coming on the market over the next months and years.
Another question to ask is how are buyers going to react to the market? Are they going to place a premium on these non-flooded homes? Are they going to ask for deep discounts for these flooded homes? Or are they going to avoid those altogether? No one knows for sure and neither do we but as the data comes in over the next couple months, we’ll be sure to share with you the trends of what’s going on in the Houston real estate market.
That’s all for the Holub Team Market Update for the month of August. Thanks again, stay Houston Strong!August 2017
July 2017 Market Update
Hey friends, Paul Holub here with another Holub Team Real Estate Market Update for the month of July.
Well the hot summer selling months are slowing winding down, but we’ll still be selling a bunch of homes over the next couple months. As we saw in June we set a record for the number of single-family homes sold at just under 8,400 homes. We had a drop for July at just over 7,400 single-family homes and based on previous data I bet we see it jump up a bit in August before we see a slow and steady decline in the number of homes sold during the fall months. If you can call it fall, it’s really more of just an extended summer!
Good news for Buyers we saw an increase in home inventory this month. Town-homes and condos jumped to 4.7 months of inventory. Single-family homes jumped 4.5 months of inventory which is the highest we’ve had in 5 years. So, all that means is that there’s more and more homes on the market and more and more opportunities for you to find the right house for you so pick a good one.
Don’t worry sellers I have good news for you as well. The average sales price is up 2.4% from this time last year to an average sales price at just under $300,000. We still in a seller’s market which means it just advantageous for you to sell right now but with more inventory we are working our way up toward the more average market not favoring buyer’s or seller’s. Thirty-year fixed rate is hovering about 4.15% and the 15-year fixed rate is about for 4.5%.
That’s all for the Holub Team Market Update for July, thanks again and all the best.July 2017
June 2017 Market Update
Hey friends, Paul Holub here with another Holub Team Real Estate Market Update for the month of June.
Here in Houston, June was a DOUBLE RECORD-BREAKING month! We sold just over 8,400 single-family homes which is an all-time high. The second record is that we had the all-time high average sales price at just over $304,000! So, despite all the challenging economic factors people are still moving to Houston and buying great house.
So that’s all great news for sellers but I’ve got great news for buyers as well. We are currently at 4.4% months of home inventory which is the highest amount of homes we’ve had on the market since 2012. So, there’s more and more opportunities for you guys to find the right home for you. The average amount of time it takes a home to sell is around 53 days which is just a couple more than it was last year this time. So that just means that sellers need to have a couple more showings and keep the house cleaner just a little bit longer.
Interest rates are also ticking up. The average 30-year fixed rate is about four and a quarter and the 15-year fixed rate is about 3.75%. So, things are starting to move up, so if you’re a buyer thinking of buying now be time to lock in your rate before it goes up any higher.
This has been your Holub Team Market Update for the month of June. Thanks again and all the best.June 2017
May 2017 Market Update
Hey friends, Paul Holub here with another Holub Team Real Estate Market Update for you.
So, what’s going on in real estate? Well the market is hot, the summer’s here and homes are selling. In the month of May we sold over 8,000 single-family homes. That’s a 12% increase over last year, so things are rocking and rolling. The prices are also up, so not only are we selling a bunch of houses, we’re selling them at a high price. The average single-family home selling for just over $300,000. It’s actually the second highest average sales price we ever had in the Houston area. Most of that is due to increase in luxury home sales. We’ve had an increase of over 27% of luxury home sales from this time last year.
We also have more and more homes popping up on the market for sale. In the month of May we had just over four months of home inventory. This time last year we had about three and a half months of inventory. So, more and more sellers are trying to cash in on the high prices and get their home sold during the summer selling months.
Well, for all my friends out there who’ve graduated college and are living in your parent’s basement, I’ve got great news for you. Rental prices are down by just under 7%, its about $1550 a month. So, it may be the perfect time to spread those wings and fly. And for well-qualified buyers you can get a home loan for about 3.5% for a 15-year fixed and about 4.1% for a 30-year fixed.
This has been a Holub Team Real Estate Market Update for the month of May. Thanks again and all the best.May 2017