The supply of single-family homes dropped to less than three months of inventory in November. That’s down from just over four months in November of 2012. The tight supply helped push the average price of a single-family home to just under $246,000, up more than 8% from a year ago.
Jed Kolko is chief economist for online real estate marketplace Trulia. He says the Houston market is now slightly overvalued, but that it’s far from bubble territory.
“Right now, about 56% of homes listed for sale in the Houston area are within reach of a middle-class household. Compare that to about 14% in the San Francisco area and 25% of homes in the New York metro area. Even though prices look a little bit overvalued in Houston, Houston remains much more affordable than most other big metro areas around the country.”
Single-family home sales in Houston totaled just over 5,100 in November — the lowest one-month sales volume since February.