Intro – Houston Housing Market Curious about our local Houston real estate market? I will provide you the latest MLS press release from the Houston Association of Realtors taken last January 8th of this year.  Let’s explore it right now.

1 – Houston Housing Market Hi Jennifer Yoingco of Texas Home Group.  By the way, watch till the end of the video as I will provide you a free gift.  My ultimate home buyer’s guide is available for download.  I am excited to share that to you.   Now on to our topic.  I know explaining the statistics about the housing market is a bit boring, I will try my best to make it worth your while and explain some terms that are confusing.   As of January 8, the Houston housing market blossomed to record levels in 2019.  Why?   First – because of low mortgage rates – in the 1990’s interest rates are at 9%, now <= 4%   Second – healthy employment growth   Third – stable supply of homes.

2 – Houston Housing Market I  know majority of you are interested in knowing about the single family homes.  How did it go in Houston? Well, December 2019 delivered the strongest percentage increase, would you believe that?  Usually this month is not the season to buy or sell but the numbers show otherwise.  It only means, it does not depend on any seasons as long as the price is right, the demand will always be there.   Single family homes in December alone, jumped 14.3% compared to December of last year. The strongest homes sales price where in the $250k-$500k range.  The second was $150k – $250k range.     The prices of Single family homes set new December highs.  It rose around 4.6% to $251k while the average went up 2.5% to $312,922k   Despite those highs, price increase began to show in moderation.

3 – Houston Housing Market  How about the TOWN HOUSE and CONDO sales?   Despite months of gains and losses; sales had a strong finish. December jumped 14.1%.  If we convert that to number of units, it is 581 units vs 509 a year earlier.   Average price is 10.3% increase to $227, 239 Median price is 9.1% increase to $185k.   Inventory grew from 3.7 month to 4 month?   What does average price vs median price mean? And when inventory grows from 3.7 months to 4 months, what does that mean?  

4 -Houston Housing Market Average price is calculated by adding the total sales price of homes sold in a specific area and dividing that to the total number of homes sold. Usually, this is not a good gauge or an unreliable metric because there are homes that are expensive and homes that are in the low end.  So if you add all of them together and divide by the total, the answer is skewed.    While the median price is the sale price in the middle of the data set when you arrange all the sale prices from low to high. The median sale price, then, represents the figure at which half of the properties in the area sell at a higher price and other half at a lower price.   When you decide to sell your home, I suggest to get both average price and median price, at least you have a ballpark and see if an outlier is present which is causing to inflate the price.     What does months of inventory mean – number of months required to sell the entire current inventory; provided no new supply comes into the market. So in this case we have 4 months of inventory.  How is this calculated?  It is calculated by dividing the total number of inventors by the monthly sales.

5 – Houston Housing Market  As to the lease of Single family homes, it rose 5% with an average rent unchanged at $1,764   Whereas the lease of townhomes/condo fell 5.5% with average rent of 2.7% to $1,569.   So what will 2020 bring us?  As said, despite the highs, price increases are beginning to show moderation. According to littlebighomes.com, the probability for rising home prices in Houston is 76% during this period. If this price forecast is correct, the Houston home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.   I will include a link below on where to find the charts.   https://www.littlebighomes.com/real-estate-houston.html

6 – Houston Housing Market  I hope you learned something new. If you enjoyed the video, be sure to hit the like, subscribe and the notification bell to be part of my insider real estate tips and secrets. Thanks for watching.  This is Jennifer Yoingco. You are my priority for anything real estate!  Serving Houston, Tomball, Spring and the surrounding cities.  I will see you in the next video.  Bye.

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