The greater Houston area residential real estate market is showing no signs of slowing down as home prices rose to new highs in March 2021! The shortage of available homes combined with historically low interest rates and the surge of activity in the luxury market all played a significant role in solidifying the tenth consecutive month of positive sales in the Bayou City.
According to Houston Association of Realtors (HAR) March 2021 Market Update, single-family home sales jumped up by 24.4% with 9,347 units sold versus 7,511 a year earlier. On a year-to-date basis, home sales are currently 16.9% ahead of 2020's record-breaking pace.
Homes priced between $500,000 and $750,000 led the way in sales volume with a 96.8% year-over-year surge, followed by the luxury segment ($750,000 and above), which soared 89.9%.
With high-end home shopping dominating the market, pricing was pushed to historic highs. The average price of single-family homes climbed 19.9% to $370,847 while the sales of all property types are up 31.5%. Total volume dollar for the month shot up by a whopping 55.8% to $4.0 billion!
Now for the downside... Total active listings – or the total number of available properties – fell 43.2% as fewer new listings came onto the market. A 5.8% year-over-year decline in new listings combined with another strong month of sales drove single-family homes inventory down to the lowest inventory level of all time -- a 1.4-months supply compared to 3.4 months a year earlier. According to the National Association of Realtors (NAR), the housing inventory nationally stands at a 2.0-months supply.
“The inventory shortage is causing stress for many folks. Hopefully we begin to see an uptick in new listings sooner than later.” said the HAR Chairman.
Are you interested in what your home is worth in Houston's current record-breaking real estate market? to find out.
Houston Real Estate Highlights in March 2021:
For HAR’s Monthly Activity Snapshot (MAS) of the March 2021 trends, please to access a downloadable PDF file.