Just shy of 4,000 single-family homes sold last month in the Houston area, the lowest one month sales volume since February 2012. Single-family homes sold at an average price of $244,000, up 22% from January of last year. Meanwhile, inventory remained at a record low of 2.6 months.
Shad Bogany is immediate past chair of the Texas Association of Realtors. He says the combination of high prices and lack of supply helped put a damper on sales.
“Keep in mind January is a traditional slow month, but it gives us a trend that shows that, not having enough houses available, you’re going to see some low totals coming up into the next month.”
The supply of lots available for new home construction is increasing. But a tight labor market is holding up activity.
“I’m seeing a lot of builders are taking their time about building from a sense that they can’t find enough tradespeople to build.”
Plunging sales of foreclosed property are also holding down the supply of available homes. Foreclosure sales made up roughly 9% of all property sales in January, down from nearly 20% in January 2013.