Home Prices Rise As Inventory Hits Ten-Year Low
by: Andrew Schneider, October 16, 2012 8:10:00 am
Single-family home sales rose 8.7% compared to September 2011. That’s a slight easing in year-over-year sales compared to August, but it was enough to drive available housing inventory to their lowest levels in more than a decade. Wayne Stroman chairs the Houston Association of Realtors and is CEO of Stroman Realty.
“Because we have the jobs, they’re coming here, and that’s creating this environment where the prices are on the increase. Sales are on the increase. It’s just a good time right now for Houstonians to own homes, because the mortgage rates that are at all-time lows. It’s just a rosy situation.”
Shad Bogany is broker/associate at Better Homes and Gardens Gary Greene and president of the Texas Association of Realtors. Bogany says prices are increasing, but there’s a limit to how fast they’ll rise.
“The consumer today is a smarter consumer. If the house is overpriced, it won’t sell, even in a low-inventory market.”
The average price of a single-family home rose nearly 5% from September of last year to more than $220,000, the highest level for a September in Houston. Foreclosure sales fell nearly 13%, hitting their lowest one-month sales volume all year.
chart provided by HAR