The Houston Association of Realtors (HAR) January 2022 Market Update was released on February 9, showing that 2021's positive momentum has been sustained into the new year. 6,451 single-family units sold in January of 2022 compared to 6,024 in January of 2021, an increase of 7.1 percent.
The largest sales volume increase was in homes priced at one million or more. This segment registered a 52.2% year-over-year gain, followed by the $500,000 to $1 million segment at a 47.1 percent increase; and by homes priced between $250,000 and $500,000, which rose 36.1 percent.
Overall prices were pushed upward by the heavy volume of high-end buying, combined with lack of inventory of homes under $250,000. Single-family home prices rose by 16.2 percent to an average of $377,738 with a median price increase of 19.9 percent, to $310,000. These prices represent highs for January but are well below the historic highs reached in 2021.
Total sales for all property types increased by 9.3 percent year-over-year, for a total volume of 8.134 units, and dollar volume increased by 28.1 percent for a total of $2.9 billion dollars.
According to HAR Chair Jennifer Wauhob, with Better Homes and Gardens Real Estate Gary Greene, “the Houston housing market staged an impressive start to 2022, but that pace of sales is unsustainable without dramatic and immediate improvement in inventory.” She warned that “there simply aren’t enough homes out there for consumers to buy right now, and the steady rise in home prices plus increasing mortgage rates create a perfect storm in terms of affordability.”
The numbers for the month of January show that the total number of available properties remained down by 14.2 percent. The area has a 1.4-month supply of single-family homes, versus 1.7 months in January 2021. The highest inventory over the last year was in August at 1.8 months, while March held the lowest at 1.3. Nationally, the current housing inventory stands at 1.8 months.
HAR credits this combination of rising prices and low inventory for Houston's strong lease market, suggesting that consumers are postponing homebuying plans until supply becomes more plentiful and affordable. Leases of single-family homes were up 7.8 percent year-over-year, while leases of townhomes and condominiums increased 2.6 percent. The average rent for a single-family home increased by 9.7 percent to
$2070, with townhome and condominium rents increasing 11.9% to $1081.
These numbers represent exciting opportunities for homeowners. Sellers can expect multiple offers and short marketing periods; and high selling prices for nearby properties can increase an owner's equity substantially, should they wish to pursue a cash-out refinance. The strong leasing market might also encourage some to become landlords. Working with Forza Real Estate Group will ensure owners get the highest and best offer whether they lease or sell-- and we can refer those who wish to refinance to trusted lenders.
For buyers, our services become even more valuable. The tight inventory conditions require close attention and quick reactions. Furthermore, a strong seller's market does not mean there's no room for negotiation. Forza represents both buyers and sellers, and "win-win or no deal" is a key Keller Williams value. Reach out today to learn more.