Houston home sales, prices surge

The Houston housing market finished strong in 2013, continuing a two-year trend of rising home sales and prices in the fourth quarter in the Bayou City and for the state. Houston home sales jumped 9.31 percent to 18,502 homes sold in the fourth quarter, which is slightly higher than Texas' 6.78 percent increase, according to the Texas Quarterly Housing Report. Home prices also increased in Houston. The median price rose to $180,000, up 8.58 percent from the prior year, and the average price was $247,060, up 8.68 percent. During the same time, monthly housing inventory decreased 29.26 percent year over year to 2.9 months. An inventory of 6.5 months represents a balanced market, reports The Real Estate Center. According to the report, 60,998 single-family homes were sold in Texas in the fourth quarter of 2013, which is 6.78 percent more than the same quarter of 2012. During the same timeframe, the median price for Texas homes was $172,600, up 8.48 percent from the previous year, and the average price was up 8.88 percent to $226,216. “One thing that is notable about the price increases seen in the fourth quarter is that they are relatively consistent across the state. Those increases are being seen in markets of every size, not just in the largest Texas markets. So, that indicates broad-based appreciation for Texas real estate,” Jim Gaines, an economist with the Real Estate Center at Texas A&M University, said in a release. An interesting side note on single-family housing trends, Texas saw fewer homes flipped over the past year, according to a recent study by Irvine, Calif.-based RealtyTrac. Experts suggest home owners are leery of selling unless they have to because it may be difficult to find a new home to move into. Houston is also a hot market for the sales and rentals of multifamily properties, according to a report recently released by Jones Lang LaSalle. as seen in HBJ 2/4/14