Houston Real Estate Market surges in January: Sales and Prices Up (Video)
The Houston Real Estate market defied cyclical trends to post strong numbers in January. Sales were up 14.5% and prices were up 4.5% year over year. Inventory remain low at 3.5 months and active listings saw an increase giving buyers more properties to pick from. Rentals were also up 14.5% year over year.
Price segments that saw the highest activity:
The price segment that saw decreases were homes under $150k due to the fact that as prices have risen over the years, the segment is becoming smaller and smaller.
The surge was in large part driven by two main factors:
- Low interest rates: Average interest rate dropped to a new low of 3.45%
- Low unemployment: Houston area unemployment dropped to 3.6% as the Greater Houston Partnership reported that 88k jobs were added in 2019 despite a challenging oil and gas environment.
Leading indicators point to continued strength in February with pending sales up 21% year over year. Interest rates are expected to stay low and that should stimulate buyer demand further.