In April 2024, Houston saw a 9.2% rise in single-family home sales. A total of 7,926 units were sold compared to 7,256 units sold in April 2023 while months of inventory climbed from 2.5 to 3.7 which is right where we were in October of 2019 at 3.8 months of inventory. What does this mean? Houses are selling. But didn't I just write that months of inventory climbed? Yes, but there can be multiple reason for that. All housing segments sall an increase in sales in April. Even the luxury $1MM+ segment saw a 33.8% rise. As with most spring home buying seasons, inventory will rise and homes will be sold. In 2024, it seemed to start a bit later in April instead of March this year.
Yes, we saw a slight rise in actives, and its just in the sweet spot of a balanced market. At Jet, we don't feel a 6-month inventory is a balanced market like you see on nantional housing breakdowns. Around a 4-month inventory is balanced, below that is seller market, and 6-month is clearly buyers market.
Total property sales are up 8.7% and total dollar volume increased 13.8%. Pending properties are also up 10.3% and active listings are up 32.3%.
Now, it's not all rose colored paintings out there. This 9.2% year-over-year increase is just the 4th increase in the past 12 months. As prices still rise 4.6% to a $437,198 average price and a $340,000 median price, you as the investor still have to buy your properties conservatively to pivot issues as we approach November. Days on market decreased from 56 days to 49 days but thats not that significant. Still plan on holding the property about 60 days after your renovations and please make sure a part of your comparable analysis is not only the after repaired value, but ratios on actives vs. pending vs. sold and DOM so you can project all in holding costs to your profit margin outlook.
Broken out by housing segment, April sales performed as follows:
- $1 - $99,999: increased 24.3 percent
- $100,000 - $149,999: increased 20.9 percent
- $150,000 - $249,999: increased 2.2 percent
- $250,000 - $499,999: increased 6.1 percent
- $500,000 - $999,999: increased 14.0 percent
- $1M and above: increased 33.8 percent
What does all this boil down to? Get with a good partner like Jet Lending to look at your deals, make sure you are projecting the right way so you can stay in business long enough for the rates to drop. When they do, my projection is its going to make Covid sales look like nothing.
