Greater Houston market update for June 2022 yields mixed readings
It’s no secret that it’s a seller’s market across the greater Houston area! However, rising home prices, a lack of inventory, and rising mortgage rates have inevitably pushed demand to its limits.
The number of homes that sold in June experienced their first significant decline of 2022, home prices are still at record highs, and a steady supply of new listings helped boost inventory to the highest number of available homes for sale since November 2020.
Five highlights from June 2022's market insights report
The number of homes sold fell, but the Houston area real estate market is still ahead of 2021. According to the Houston Association of Realtors’ (HAR) June 2022 Market Update, the number of single-family homes sold in June 2022 fell by 8.6%, marking the third consecutive monthly year-over-year decline. On a year-to-date basis, however, the Houston area real estate market is still running 1.7% ahead of 2021’s record-setting volume!
Home prices are still at record highs. While the number of homes sold is trending downward, the average price of a single-family home rose 11% in June to $436,425 – slightly below last month’s record high – while the median price jumped 13.2% to $355,000, which is the highest median of all time
More active listings are on the market. A steady supply of available homes on the market increased by a staggering 27.4% boosting inventory to a 2-months supply – the most plentiful supply of homes since November 2020.
Buyers are still paying above the list price. June 2022 also marks the third consecutive month that the ‘Close to Original List Price Ratio’ for single-family homes surpassed the 100 percent mark, rising to 100.1%. This figure means that most buyers paid above the list price for homes on the market. I.e., Most homes are still receiving multiple offers.
The $500K to $1M price range is booming. Not all Houston area buyers were deterred from moving forward with their finding a home to buy. Homes priced in the $500,000 to $1 million price range are doing just fine, registering a 22% year-over-year sales volume gain!
What does the June 2022 Houston market update tell us?
All in all, HAR’s latest real estate market update yielded mixed readings. While there was an 8.6% drop in the number of homes sold, the total dollar volume for June eked out a 1.7% gain, coming in at $4.9 billion.
It’s still a seller’s market, but it’s not quite as hot. Instead of 20-25 offers, we’re seeing five to six offers. However, the increase in inventory is a welcome relief for buyers! This means that they may finally be able to have a leg to stand on when trying to negotiate more favorable terms.
Houston Real Estate Highlights in June 2022
The number is single-family homes sold fell 8.6% year-over-year, their third and biggest decline of 2022.
The single-family average price rose 11% percent to $436,425, the second highest of all time, and only the fourth time that pricing has exceeded $400,000.
The single-family median price increased 13.2 percent to $355,000 – setting a new record high.
Single-family home months of inventory registered a 2-months supply, up from 1.4 months a year earlier and marking the greatest supply since November 2020.
The ‘Close to Original List Price Ratio’ for single-family homes reached 100.1% percent, marking the third straight month that buyers paid above list price for homes on the market.
Total dollar volume increased 1.6% to roughly $4.9 billion.
The average days on Market (DOM) for single-family homes dropped from 30 to 28.
Do you want a more tailored look at what the latest Houston area market update means specifically for your home buying or selling needs? Contact me at 832.594.1265 or [email protected]to schedule a home buying or selling consultation!
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