Houston Real Estate Market Report May 2020
Houston home sales fell for a second straight month in May as a result of COVID-19 and related stay-at-home orders. The latest monthly Market Update Report from the Houston Assocation of Realtors (HAR) shows that homes in every price category experienced losses, with the steepest declines at the low and high ends of the market. Homes priced below $100,000 dropped more than 37 percent while those priced above $750,000 plunged more than 56 percent. Year-to-date sales are now running 4.3 percent behind 2019’s record pace. One bright spot to the report – leases of single-family homes rose nearly 12 percent.
The report also showed that sales of all property types totaled 7,917, down 20.7 percent from the year prior. Total dollar volume for the month also fell almost 26 percent to slightly more than $2.2 billion. The single-family home average price dropped 7.4 percent to $298,199 while the median price dipped just0.4 percent to $249,000. The last time home prices saw declines was in January 2018.
May Monthly Market Comparison
The lingering coronavirus pandemic layered on top of strains in the energy sector weighed heavily on the Houston real estate market for a second consecutive month in May. Single-family home sales, total property sales, pricing and total dollar volume all fell compared to May 2019. Pending sales, however, jumped 23.1 percent. Total active listings, or the total number of available properties, was down 8.3 percent.
Houston Real Estate May Highlights
- Single-family home sales fell 20.2 percent year-over-year, with 6,671 units sold, marking the second straight month of declines fueled by the COVID-19 pandemic;
- The Days on Market (DOM) figure for single-family homes grew from 54 to 58 days;
- Total property sales dropped 20.7 percent, with 7,917 units sold;
- Total dollar volume dove 25.9 percent to $2.23 billion;
- The single-family home average price fell 7.4 percent to $298,199, the first decline since January 2018;
- The single-family home median price was statistically flat at $249,000;
- Single-family homes months of inventory was at a 3.5-months supply, down from 4.1 months last May and below the national inventory level of 4.1 months;
- Townhome/condominium sales dropped 36.0 percent, with the average price down 2.3 percent to $206,146 and the median price up 2.9 percent to $175,000;
- Single-family home rentals jumped 11.9 percent with the average rent down 2.8 percent to $1,822;
- Volume of townhome/condominium leases fell 4.6 percent with the average rent down 4.6 percent to $1,586.