The Houston housing market logged another solid month in May as buyers closed on 8,346 homes, up 2.8% from a year ago, new data shows.
May marked the fourth straight month of sale gains following a period of declines, and the median price of a home hit a new high, according to the Houston Association of Realtors, which released its monthly market report Wednesday.
High-end housing — homes that sold for at least $750,000 — led the way in sales volume, boosting the overall median price to a high of $249,993, up 2.4% from a year ago. Sales volumes fell for homes priced less than $150,000, likely due to a lack of inventory.
"We are seeing signs of a healthy and sustainable housing market throughout greater Houston, and that is due to a more plentiful supply of homes, continued low interest rates and a strong local economy," Shannon Cobb Evans, the association's chair said in a statement. "In addition to solid home sales, consumers are still snapping up rental properties, and that is also driving the local housing market."
The rental market experienced double-digit gains in May. Single-family home leases were up 11.1% compared with a year earlier, while leases of townhomes and condominiums surged 19.3%. The average rent for a single-family home rose 1.6% to $1,874, while townhomes and condominiums rents increased 5.6% to $1,666.
Buyers in the market for single-family homes had more to choose from last month as listings spiked 11% over a year earlier and housing inventory grew to its highest level since August 2017.
While the market for single-family homes continues to grow, townhomes and condominiums have been slower to move.
Sales have fallen in all but one month since January and inventory is rising. In May, sales fell 2.6% from last year, while the median price dipped to $169,000.
