Houston Home Sales Still Posting Gains, But Tight Supplies Could Spell A Slowdown
by: David Pitman, December 17, 2013 5:12:00 pm
In November, 5,100 single-family homes found new owners. That's about a three percent increase over the total from last November. But, even with that growth, the Houston Association of Realtors says November posted the lowest monthly total since February.
However, the recent sales activity has still been enough to push inventories to record lows. If home sales kept up the current pace, it would take just under three months to exhaust the current supply of listings. A balanced market typically has about a six month supply.
The chair of HAR says low inventory levels are starting to have an effect on the number of closings. ;Also contributing to the slowdown are the holidays and an uptick in mortgage rates.
Meanwhile, home prices continue to reflect the tightening supply. The median price — the point at which half of all homes sold for more, and half sold for less — was $181,000 last month. That's almost nine percent higher than a year before.