HOUSTON HOUSING GETS ANOTHER TAP ON THE BRAKES IN JULY

By
Real Estate Agent with JLA Realty TREC # 0524744

A fourth straight month of declining sales brings the market closer to more normal, pre-pandemic conditions


 
HOUSTON — (August 10, 2022) — The frenetic pace of home sales that dominated the Houston housing market throughout most of the pandemic continues to slow its roll. Some consumers, facing record pricing, rising interest rates and limited inventory, have moved to the sidelines or opted to rent. Home sales experienced their fourth consecutive monthly decline in July, while new listings buoyed inventory to the highest level in two years.
 
According to the Houston Association of Realtors’ (HAR) July 2022 Market Update, single-family home sales dropped 17.1 percent, with 8,370 units sold compared to 10,102 in July 2021. That is the lowest one-month sales volume since January 2022. On a year-to-date basis, the market is now trailing 2021’s record-setting pace by 1.3 percent. 
 
The only housing segment that did not experience negative sales in July was the $500,000 to $1 million segment, which rose 10.1 percent. The smallest decline in sales was registered among homes priced between $250,000 and $500,000, which fell 9.2 percent. With a scant assortment of homes priced below $250,000, consumers have had to weigh more expensive property options, shift their focus to rental homes or postpone buying or renting plans altogether. [HAR’s Monthly Rental Home Update for July will be released next Wednesday, August 17]. 
 
“The scorching pace of Houston housing throughout most of the pandemic was completely unsustainable, so the cooling that we have experienced over the past four months was expected and is all part of a market normalization,” said HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene. “As long as we continue to see inventory grow and prices level off, I believe homebuyers will move off the sidelines and back into the marketplace. An easing of interest rates would help as well, particularly for first-time buyers who desperately want to seize the American Dream of homeownership.” 
 
The average price of a single-family home rose 9.9 percent in July to $426,494 – well below the record high of $438,844 reached in May 2022. The median price jumped 12.7 percent to $348,740, which is well below highest median of all time, $354,613, reached last month. The average price for a single-family home in Houston first broke the $400,000 mark in March of this year. The median price has remained above $300,000 since May of 2021.

After surpassing the 100-percent mark for three straight months, the ‘Close to Original List Price Ratio’ for single-family homes fell to 98.9 percent in July. A reading above 100 percent signals that a majority of buyers paid above list price for homes on the market. 
 
July Monthly Market Comparison
With prospective homebuyers facing record prices, rising interest rates and a limited supply of homes on the market on top of general consumer inflation, home sales were down again in July. Single-family home sales fell 17.1 percent. On a year-to-date basis, sales are 1.3 percent behind last year’s record pace.
 
The housing measurements for July generated mixed readings. In addition to the drop in single-family home sales, total property sales experienced declines and pending sales slid 12.5 percent. Active listings (the total number of available properties) jumped 30.0 percent but total dollar volume fell 9.0 percent to $4.1 billion.
 
Months of inventory grew again in July, reaching a 2.5-months supply. That is the highest level since August of 2020 when it was 2.6 months. Housing inventory nationally stands at a 3.0-months supply, according to the latest report from the National Association of Realtors (NAR). A 6.0-months supply is generally considered a “balanced market,” in which neither the buyer nor the seller has the upper hand.

Single-Family Homes Update
 
Single-family home sales fell 17.1 percent in July with 8,370 units sold across the Greater Houston area compared to 10,102 a year earlier. Strong sales among higher-end homes pushed pricing up again but not to record levels. The median price climbed 12.7 percent to $348,740 while the average price rose 9.9 percent to $426,494. 

Days on Market, or the actual time it took to sell a home, held steady year-over-year at 26 days. Inventory registered a 2.5-months supply compared to 1.7 months a year earlier. That is the greatest supply of homes on the market since August of 2020. The current national inventory stands at 3.0 months, as reported by NAR.
 
Broken out by housing segment, July sales performed as follows:
  • $1 - $99,999: decreased 39.4 percent
  • $100,000 - $149,999: decreased 34.9 percent
  • $150,000 - $249,999: decreased 49.6 percent
  • $250,000 - $499,999: decreased 9.2 percent
  • $500,000 - $999,999: increased 10.1 percent
  • $1M and above: decreased 11.6 percent
HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 6,921 in July, down 20.3 percent from the same month last year. The average sales price rose 10.4 percent to a $427,931 while the median sales price jumped 11.5 percent to $340,000, the second highest of all time. 
 

For HAR’s Monthly Activity Snapshot (MAS) of the July 2022 trends, please click HERE to access a downloadable PDF file.

Houston Real Estate Highlights in July

  • Single-family home sales fell 17.1 year-over-year, their fourth and biggest decline of 2022 as the market continues on the path toward a more normalized, pre-pandemic pace;
  • Days on Market (DOM) for single-family homes was flat at 26;
  • The ‘Close to Original List Price Ratio’ for single-family homes fell below 100 percent for the first time since April 2022, meaning that most buyers did not pay above list price for homes on the market;
  • Total property sales were down 17.4 percent with 10,180 units sold;
  • Total dollar volume was off 9.0 percent at $4.1 billion;
  • The single-family average price rose 9.9 percent to $426,494; 
  • The single-family median price increased 12.7 percent to $348,740;
  • Single-family home months of inventory registered a 2.5-months supply, up from 1.7 months a year earlier. That is the greatest inventory level since August of 2020;
  • Townhome/condominium sales experienced their second consecutive monthly decline, falling 21.5 percent, with the average price up 5.0 percent to $257,834 and the median price up 9.7 percent to $220,000.

Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com or http://www.har.com. And for all of your Pearland, TX and Northern Brazoria and Galveston County real estate needs, please visit my site at: http://www.danfrankrealty.com. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.

Remember, Danny Frank is always looking to hire new and experienced real estate agents for the team at JLA Realty.  Are you ready to move to the next level in your career?  Call me to join today or just visit my site for more information:

You can see my entire blog at: http://www.pearlandrealtyblog.com

Call Danny Frank, at 713-581-4702 to start looking for the JUST right house or to sell your house at the best price ever and in the quickest amount of time.

Posted by

Danny Frank
A Texas Realtor
JLA Realty

The Pearland Real Estate Expert

Servicing all areas in the greater Houston area and the Central Texas area


Are you getting ready to sell or purchase your house or land in the area or any surrounding areas of SE Texas?
Let's talk soon

FaceBookInstagramYouTubeLinkedIn Google Meeting

Search Pearland Home For Sale
Pearland Open Houses
New Listings in Pearland

Are you or someone you know wanting to become a Realtor? I am hiring both new and experienced Agents. Click HERE to find out more about working with me!  

 

 Danny Frank - Pearland Real Estate Expert

713-569-8102
Call or Text

Email me

Comments (1)

Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Hi,

Enjoyed your blog page, and I added you as a friend. I would love the follow back. Thanks Bill

Aug 17, 2022 01:44 PM