The Houston housing market showed signs of weakening as July marked the first sales decline in six months; drastically dropping sales volume on the high and low ends of the housing continuum, the Houston Association of Realtors reported.
According to HAR’s latest forecast, an estimated 7,204 homes sold in the month of July, a decline of 8.8 percent year-over-year. Contrastingly, the low sales volume allowed for the housing month supply to increase to 4.0-months—a noteworthy increase, but less than the 4.1-month supply of inventory from last year.
Average single-family sales price decreased -0.5 percent to $292,316 over July 2015, while the median home price rose 4.4 percent year-over-year to $230,000—the highest median price for a July, HAR reported.
“We never like to see a decline in home sales, but it’s helpful to remember that our comparisons each month are to a record year in 2015,” said HAR Chairman Mario Arriaga. “July was the first time in several months when even mid-range housing saw declines. It’s hard to identify a single cause for the drop in sales, whether it’s a possible trickle-down effect of falling oil prices or prospective buyers holding out, but Houston’s housing market is still healthy overall, and HAR will continue to monitor conditions as we transition into the fall months,” stated Arriaga.
Month-end pending sales for single-family homes totaled 7,979, while total dollar volume decreased -9.0 percent to $2.37 billion in comparison to $2.61 billion from July 2015. All housing segments saw a decline in the month of July, mainly homes under $79,999, HAR reported.
While no outstanding gains were seen throughout the month of July, the median price of a single-family home climbed to a record high, and inventory levels saw a significant spike, reaching the highest level since November 2012. All in all, the Houston real estate market remains viable.