The Houston Association of REALTORS® (HAR) February 2022 Market Update indicates a second month of positive growth in the new year. Despite soaring prices and evaporating inventory, home sales scored double-digit gains in February. Part of this uptake is due to the Texas freeze in February 2021 that halted real estate activity for days. Undistorted by the weather factor were the continued squeeze on inventory, which returned to its all-time low, and pricing, which soared to record highs due to limited supply and ongoing consumer demand.
Key findings:
- Single-family home sales jumped 22.9% with 7,372 units sold compared to 5,997 in February of 2021. Compared to the last “normal” February in 2020, sales volume was up 23.3%.
- Days on Market (DOM) for single-family homes dropped from 48 to 41.
- Existing home sales totaled 5,765 in February, up 23.4% from February 2021. As that figure was likely skewed by the freeze effect last year, a comparison to February 2020 shows an increase of 24%. The average sales price rose 12.1% to $391,180 while the median sales price climbed 18.1% to $319,000. The average price is the second highest of all time while the median establishes a new record high.
- For months now, the lack of available homes below $250,000 has forced consumers to shop for homes at higher price points. In February, this tight sellers’ market pushed prices beyond the records set in 2021 to the highest levels of all time. The average price of a single-family home rose 13.4% to $395,871 while the median price increased 19.3% to $328,000.
- Total property sales rose 25.6% with 9,299 units sold.
- Total dollar volume increased 43.5% to $3.5 billion.
- The single-family average price rose 13.4% to $395,871, the highest of all time.
- The single-family median price increased 19.3% to $328,000—also a record.
- Single-family home months of inventory registered a 1.3-months supply, down from 1.5 months year-over-year and below the national inventory of 1.6 months.
- Homes priced between $250,000 and $500,000 led the way in sales for the month, registering an 80.1% year-over-year gain. The $500,000 to $1 million housing segment came in second place, surging 72.3%. That was followed by the luxury market—consisting of homes priced at $1 million and above – which rose 33.5%.
- Townhome/condominium sales jumped 35.9% with the average price up 22.4% to $266,366 and the median price up 26.8% to $225,00, both record highs.
- Single-family home rentals rose 23.8% with the average rent up 6.5% to $2,052.
- Townhome/condominium leases decreased 1% with the average rent up 7.9% to $1,767.
- On a year-to-date basis, sales are running 15.4% ahead of 2021’s record pace.
- Total active listings fell 10.7% as a result of steady homebuying.
The takeaway:
“Last year’s freeze may have distorted the February sales figures, but the fact remains that home sales throughout Houston continue to trend upward despite the challenges posed by limited inventory, record-setting pricing and rising interest rates,” said HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene. “We are watching closely to see how the local housing market may be affected this month by surging oil prices and some of the other economic fallout of the .”
For more information, visit https://www.har.com/.
