Low inventory. Low-interest rate. Higher prices. That's the short answer to the bonanza we are seeing in Houston real estate market. As you will see, home sales, home prices, and inventory levels are all hitting record numbers. It is truly a booming market in Houston real estate. Many listings are receiving multiple offers and some are getting bid up well above the asking price. It is a really good time to be a Houston home seller.
According to the latest report from the Houston Association of Realtors (HAR), 9,347 single-family homes sold in March compared to 7,511 a year earlier for a 24.4 percent increase. That marked the tenth consecutive month of rising home sales. Homes priced between $500,000 and $750,000 led the way in sales volume in March with a 96.8 percent year-over-year surge. That was followed by homes price over $750,000, which soared 89.9 percent.
The average price for single-family homes increased 19.9 percent to a high for March of $370,847. The median home price increased 16.0 percent to $290,000. Both are record highs.
According to HAR, total active listings, or the total number of available properties, fell 43.2 percent to 22,602. March sales of all property types totaled 11,692, up 31.5% compared to March of last year. As a result, the absorption rate for March 2021 was 52%! That is double any March absorption rate number over the past 10 years.
Days on Market (DOM), or the number of days it took the average home to sell continues to remain relatively steady. In March, the average home sold in 45 days. Single-family homes inventory narrowed to 1.4 months. According to HAR, that is the lowest inventory level of all time! For prospective sellers, that is good news.
There is no denying that this is a great time to be a home seller. We haven't seen a market like this one since at least 2014 and probably won't see another one for quite some time. If you are considering selling your home over the next year or so, you should really look at your options. It won't be the right time for everyone, but you shouldn't let this market pass without at least accessing doing your due dilligence. Feel free to give us a call. We're happy to help.
Norhill Realty provides expert real estate services to residential buyers and sellers in Houston and surrounding communities. Contact us today for more information on Houston real estate and for professional assistance navigating this sometimes complex home market.
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