Home Sales Skyrocket In October, While Inventory Plummets
by: Andrew Schneider, November 20, 2012 4:11:00 am
Single-family home sales shot up nearly 33% compared to October 2011, according to the latest monthly data from the Houston Association of Realtors. That’s nearly four times the rate of year-over-year sales registered in September.
Shad Bogany is broker/associate at Better Homes and Gardens Gary Greene and president of the Texas Association of Realtors.
“We’re in the slowest part of the year, and the market is acting as though it’s in June or July.”
Wayne Stroman is chairman of the Houston Association of Realtors and CEO of Stroman Realty.
“In its October employment report, the Texas Workforce Commission stated that close to 96,000 new jobs were added in Houston over the past year, a 3.7% increase. This translates to more people moving to Houston, and these folks all need a place to live.”
Home inventory dropped to 4.4 months, the lowest level since December 2001. Shad Bogany says that’s likely to jog new home construction.
“A lot of the builders stopped building. They were only building if you wrote a contract, and the banks were only loaning money to them if you had a contract to build. And so now, the builders are trying to catch up with the demand. I think the new home sales, builders are really way behind the eight ball.”
The average price of a single-family home rose more than 8% from October of last year to more than $223,000 dollars, the highest level for an October in Houston.