David Mendel / November 26, 2012 /

Home prices achieve October highs with inventory dropping to an 11-year low

The number of homes on the market in Houston reached the lowest level in more than a decade in October, thanks to a surge in sales that also l

ifted prices to the highest levels ever for an October.

Single-family home sales skyrocketed 32.7 percent compared to October 2011, according to the latest monthly data prepared by the Houston Association of REALTORS® (HAR), and accounted for the 17th consecutive month of positive sales. Contracts closed on 5,379 homes, driving inventory down to 4.4 months, a level last seen in December 2001. All segments of the housing market saw gains in October, with the steepest among homes priced above $250,000.

“Home sales throughout Houston were incredibly strong in October and sent the supply of homes down to 4.4 months, which is the lowest level we’ve observed in 11 years,” said Wayne A. Stroman, HAR chairman and CEO of Stroman Realty. “Our active real estate market reflects the general health of the Houston economy, most notably the addition of close to 96,000 new jobs over the past year, according to the latest Texas Workforce Commission employment report. The inventory squeeze has definitely created fertile ground for homebuilders.”

The single-family home average price increased 8.3 percent year-over-year to $223,366, the highest level for an October in Houston. The median price—the figure at which half of the homes sold for more and half sold for less—jumped 8.7 percent to $163,000, also a record high for an October in Houston.