Houston area home sales set new records in May as consumers took advantage of historically low interest rates in snapping up an ever-dwindling supply of properties for sale. What resulted was a nearly 50 percent jump in sales volume compared to the same month last year, when real estate was still in the process of recovering from coronavirus-related lockdown orders. Limited supply, strong buyer demand and increased construction costs all contributed to record high home prices.
Houston real estate highlights for May 2021 from HAR.com:
- Single-family home sales increased for the twelfth consecutive month, up a dramatic 48.2 percent year-over-year with 9,702 units sold;
- The Days on Market (DOM) figure for single-family homes dropped from 58 to 34;
- Total property sales rose 55.5 percent with 12,100 units sold – the second highest volume in history;
- Total dollar volume increased 100.5 percent to $4.4 billion;
- The single-family average price reached a new record high, rising 29.7 percent to $387,105;
- The single-family median price rose 21.7 percent to $304,000 – also a record high;
- Single-family homes months of inventory registered an historic low 1.4-months supply, down from 3.3 months year-over-year and below the national inventory of 2.4 months;
- On a year-to-date basis, single-family homes sales are running 29.5 percent ahead of 2020’s record pace.
- Townhome/condominium sales jumped 103.4 percent with the average price up 15.7 percent to $238,839 and the median price up 21.7 percent to a record high of $213,000;
- Single-family home rentals fell 26.8 percent with the average rent up 10.6 percent to a record high $2,025;
- Townhome/condominium leases declined 3.5 percent with the average rent up 8.5 percent to $1,716.
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