Home Inventory Falls To 2.6 Months, With Inner Loop Prices In Bubble Territory
by: Andrew Schneider, January 21, 2014 1:01:00 pm
Single-family home sales topped 5,800 units in December, an increase of more than 14% compared to a year earlier. Inventory dropped to just 2.6 months of supply, an all-time low for the Houston area. Shad Bogany is immediate past chair of the Texas Association of Realtors.
“When you have about 86,000 jobs moving to the area, you’ve got buyers and renters moving in from all over the country. That’s going to cause us to have a low months of supply, and the builders are not revved up to handle the business yet.”
The average price of a single-family home rose to more than $265,000 dollars, up more than 10% from a year earlier.
“If you’re inside the Loop, you’re probably at bubble pricing right now, based on the lack of inventory.”
Bogany says he expects the housing supply to remain tight for at least another month. He says sellers are more inclined to put their homes on the market in the spring, when warmer weather makes it easier for them to move.