The Houston real estate market had a robust performance in April, however, for the first time in 2022, sales volume failed to beat last year’s historic pace as record-high prices, rising interest rates, and limited inventory weighed on homebuyers during what is traditionally the busy spring homebuying season.
Record pricing again! interest rates Rise and low inventory is still hard on homebuyers
On a year-to-date basis, however, the market has kept the momentum of what has so far been a strong year – running 7.4 percent ahead of 2021’s record-setting volume.
Would-be homebuyers who have instead opted to rent drove single-family home leases up 17.2 percent but pulled back a bit from townhome and condominium leases, which fell 3.0 percent.
The 250,000 to 500,000 housing segment came in third place, climbing 13.5 percent. A continued lack of available homes priced below 250,000 has left consumers no choice but to shop for more expensive homes amid rising interest rates or to lease.
Mortgage rates are surging at the fastest pace in 40 years, driven largely by the Federal Reserve’s more aggressive efforts to curb inflation.
After reaching record prices in March, buyers pushed Houston home prices to even higher levels in April.
The average price of a single-family home rose 14.9% to 426,061
while the median price jumped 16.6% to 343,990.