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Investment Home Sales Rebound in 2015. This infographic shows home sales by region. Marks first year over year increase in sales since 2011. Now that there are fewer distressed home available, it appears there’s been a shift towards investors purchasing lower-priced home and turning them into rentals.
The National Association of Realtors recently released their 2016 Investment and Vacation Home Buyers Survey. The survey revealed many characteristics of both vacation home purchasers and investors. Two weeks ago, we posted on the vacation home market. Today, we want to concentrate on the investor real estate market.
The survey revealed that investment-home sales in 2015 jumped 7.0 percent to an estimated 1.09 million from 1.02 million in 2014.
Lawrence Yun, NAR’s chief economist discussed the increase in the number of sales:
“Despite a smaller share of distressed properties coming onto the market, investment purchases reversed course in 2015 after declining for four straight years. Steadily increasing home prices and strong rental demand appear to be giving more individual investors assurance that purchasing real estate will diversify their portfolios and generate additional income if they decide to rent out the home.”
The price paid by investors also increased in 2015 by 15.3%.
Tomorrow, we will be providing an infographic that will highlight the other findings about investors from the survey.
Houston Culture Map BY RALPH BIVINS 11.12.14 | 3:51 pm
The Houston housing market, coming off the strongest October on record, will outperform the nation in 2015, says one of the nation’s leading residential real estate economists. Home sales will be strong in the Bayou City next year and home prices will continue to rise, says Lawrence Yun, chief economist for the National Association of Realtors.
Houston home prices will do better than the national average, Yun says. Houston will also surpass the nation’s projected 7 percent increase in the number of homes sold next year.
The optimism about the Houston market remains high in virtually all quarters. Houston added about 120,000 new jobs over the last 12 months, a growth pace that has been achieved only a few times in the city’s history.
The strong economy, with mortgage interest rates around 4 percent and a very tight inventory of homes for sale, have stoked the market.
Houston had 6,639 single-family home sales in October, the strongest October on record and a 12 percent over last October, according to the Houston Association of Realtors.
A traditionally quieter time of year for real estate is anything but
HOUSTON — (November 12, 2014) — The Houston real estate market plowed through October at full-throttle, driving prices up once again and ensuring that the supply of homes remained at historic lows. The greatest sales activity took place among homes priced between $250,000 and the millions.
According to the latest monthly report prepared by the Houston Association of Realtors (HAR), single-family home sales totaled 6,639 units, an increase of 12.3 percent compared to October 2013. Months of inventory, an approximation of how long it will take to deplete the current active housing inventory based on the previous 12 months of sales, dipped to a 2.8-months supply versus a 3.1-months supply last October. That is down slightly from a 2.9-months supply in September 2014 and compares to the current national supply of 5.3 months of inventory.
Home prices climbed to record highs for an October. The average price of a single-family home jumped 9.8 percent year-over-year to $262,013. The median price—the figure at which half the homes sold for more and half for less—rose 8.3 percent to $192,000.
October sales of all property types totaled 8,106 units, a 12.9-percent increase compared to the same month last year. Total dollar volume for properties sold rocketed 22.2 percent to $2 billion versus $1.7 billion a year earlier.
“Most Realtors are not accustomed to this brisk a pace of home sales in Houston this late in the year,” said HAR Chair Chaille Ralph with Heritage Texas Properties. “This is typically when thoughts turn to the holidays and sales volume slows. Much of this year has defied prediction, but what helped the market keep up with buyer demand in October was an 11.1 percent increase in new listings.”
Job growth continues to serve as one of the principal drivers of the Houston housing market. The November edition of the Greater Houston Partnership’s (GHP) Economy at a Glance reports that employment in the greater Houston area grew 4.3 percent in the 12 months ending September 2014, leading the nation’s major metro areas in the pace of job growth. The report cites U.S. Bureau of Labor Statistics data stating that the Houston metro-area created 120,700 jobs on a seasonally adjusted basis, a close second to the 129,100 jobs added in the New York metro area during the same period. “This level of job creation is remarkable given that Houston is home to 2.9 million jobs, a third of New York’s 8.8 million jobs,” the GHP report concludes.
October delivered across-the-board gains for the Houston real estate market, with total property sales, total dollar volume and average and median pricing all up when compared to October 2013.
Month-end pending sales for all property types totaled 4,355. That is up 9.0 percent compared to last year and is considered a harbinger of more positive sales activity when the November sales figures are tallied. Active listings, or the number of available properties, at the end of October was 28,333, 10.4 percent below last year.
After holding steady at a 3.0-months supply in July and August and slipping to a 2.9-months supply in September, Houston’s housing inventory declined to a 2.8-months supply in October. One year earlier, it stood at a 3.1-months supply. According to the National Association of Realtors, the current supply of homes for the U.S. stands at a 5.3-months supply.
| CATEGORIES | OCTOBER 2013 | OCTOBER 2014 | CHANGE |
| Total property sales | 7,182 | 8,106 | 12.9% |
| Total dollar volume | $1,650,628,141 | $2,016,260,648 | 22.2% |
| Total active listings | 31,638 | 28,333 | -10.4% |
| Total pending sales | 3,995 | 4,355 | 9.0% |
| Single-family home sales | 5,912 | 6,639 | 12.3% |
| Single-family average sales price | $238,525 | $262,013 | 9.8% |
| Single-family median sales price | $177,330 | $192,000 | 8.3% |
| Single-family months inventory* | 3.1 | 2.8 | -10.1% |
* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.
October single-family home sales totaled 6,639, up 12.3 percent from October 2013.
Home prices reached record highs for an October in Houston. The single-family average price increased 9.8 percent from last year to $262,013 and the median price climbed 8.3 percent year-over-year to $192,000. The number of days it took a home took to sell¬, or Days on Market, was 51 versus 57 last October. In July 2014, it reached a record low of 45 days.
Broken out by housing segment, October sales performed as follows:
HAR also breaks out the sales figures for existing single-family homes. In October, existing home sales totaled 5,746. That is up 14.9 percent from the same month last year. The average sales price increased 8.7 percent year-over-year to $241,287 while the median sales price rose 8.8 percent to $179,500.
Sales of townhouses and condominiums jumped 12.4 percent in October versus one year earlier. A total of 634 units sold last month compared to 564 properties in October 2013. The average price increased 3.1 percent to $193,635 and the median price shot up 9.9 percent to $147,750. Inventory matched September’s 2.5-months supply but was down compared to the 2.9-months supply a year earlier.
Demand for lease properties persisted in October as inventory of for-sale properties shrank. Single-family home rentals climbed 13.1 percent compared to October 2013, while year-over-year townhouse/condominium rentals were unchanged. The average rent for a single-family home was up 4.0 percent to $1,711 and the average rent for a townhouse/condominium was up 8.5 percent at $1,592.
The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported since November 1998 includes a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures. (Single-family detached homes were broken out separately in monthly figures beginning February 1988.)
Founded in 1918, the Houston Association of REALTORS® (HAR) is a 29,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest individual dues-paying membership trade association in Houston as well as the second largest local association/board of REALTORS® in the United States.
Inventory shrinks slightly and prices climb as the home buying frenzy continues
HOUSTON — (October 8, 2014) — The fall home buying season began with gusto in Houston as sales and prices did in September what they have done for months – rose. The continued buying frenzy caused housing inventory to shrink very slightly after holding steady for two consecutive months. And in another scenario that has become all too familiar in this market, prices reached record one-month highs.
According to the latest monthly report prepared by the Houston Association of Realtors (HAR), single-family home sales totaled 6,490 units, an increase of 7.0 percent compared to September 2013. Months of inventory, an estimate of the time required to deplete the current active housing inventory based on the previous 12 months of sales activity, dipped to a 2.9-months supply from a 3.2-months supply last September. It remains well below the current national supply of 5.5 months of inventory.
The average price of a single-family home jumped 8.2 percent year-over-year to $269,440. The median price—the figure at which half the homes sold for more and half for less—rose 7.7 percent to $196,000.
September sales of all property types totaled 7,879 units, a 7.0-percent increase compared to the same month last year. Total dollar volume for properties sold soared 15.7 percent to $2 billion versus $1.7 billion a year earlier.
“As long as consumers continue to snap up homes at the current pace, replenishing our housing inventory will be a slow process,” said HAR Chair Chaille Ralph with Heritage Texas Properties. “Rental numbers were strong in September, suggesting that many would-be home buyers are continuing to go the lease route until the market bears the homes they’re looking for at the price point that suits them.”
The Houston housing market experienced across-the-board gains in September, with total property sales, total dollar volume and average and median pricing all up when compared to September 2013.
Month-end pending sales for all property types totaled 4,143. That is up 17.2 percent compared to last year and is considered a bellwether of continued positive sales activity next month. Active listings, or the number of available properties, at the end of September was 28,946 and is 10.8 percent below last year.
Houston’s housing inventory, after holding steady at a 3.0-months supply in July and August, shrank in September to a 2.9-months supply versus 3.2 months a year earlier. That compares to a 5.5-months supply of inventory across the U.S. recently reported by the National Association of Realtors.
| CATEGORIES | SEPTEMBER 2013 | SEPTEMBER 2014 | CHANGE |
| Total property sales | 7,362 | 7,879 | 7.0% |
| Total dollar volume | $1,733,076,889 | $2,005,556,946 | 15.7% |
| Total active listings | 32,457 | 28,946 | -10.8% |
| Total pending sales | 3,536 | 4,143 | 17.2% |
| Single-family home sales | 6,064 | 6,490 | 7.0% |
| Single-family average sales price | $248,948 | $269,440 | 8.2% |
| Single-family median sales price | $182,000 | $196,000 | 7.7% |
| Single-family months inventory* | 3.2 | 2.9 | -10.0% |
* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.
September single-family home sales totaled 6,490, up 7.0 percent from September 2013.
Home prices reached record highs for a September in Houston. The single-family average price increased 8.2 percent from last year to $269,440 and the median price climbed 7.7 percent year-over-year to $196,000. Transactions continued to close at a near-record pace. The number of days a home took to sell¬, or Days on Market, was 47. In July it reached a record low of 45 days.
Broken out by housing segment, September sales performed as follows:
HAR also breaks out the sales figures for existing single-family homes. In September, existing home sales totaled 5,715. That is up 10.2 percent from the same month last year. The average sales price increased 6.8 percent year-over-year to $250,966 while the median sales price jumped 7.5 percent to $182,800.
After two months of declines, sales of townhouses and condominiums rose 7.4 percent in September versus one year earlier. A total of 625 units sold last month compared to 582 properties in September 2013. The average price increased 7.5 percent to $195,064 and the median price shot up 10.7 percent to $150,500. Inventory reached to a 2.5-months supply versus a 3.1-months supply a year earlier.
Lease properties showed strong demand in September as inventory of for-sale properties remained tight. Single-family home rentals soared 13.2 percent compared to September 2013, while year-over-year townhouse/condominium rentals increased 8.8 percent. The average rent for a single-family home was up 2.7 percent to $1,749 and the average rent for a townhouse/condominium was flat at $1,533.
All information provided by Houston Association of REALTORS® (HAR) and can be found on their website at www.har.com
Investment Home Sales Rebound in 2015 [INFOGRAPHIC] Friday April 29th, 2016 Investment Home Sales Rebound in 2015. This infographic shows home sales by region. Marks first year over year increase in sales since 2011. Now that there are fewer distressed home available, it appears there’s been a shift towards investors purchasing lower-priced home and turning […]
