This article is over 8 years old

Business

May Home Sales Down 7% Compared to May 2013

Low inventory led to the first drop in year-over-year sales since 2011.

Listen

To embed this piece of audio in your site, please use this code:

<iframe src="https://embed.hpm.io/91569/51519" style="height: 115px; width: 100%;"></iframe>
X

Single-family home sales totaled just over 7,100 in May — a drop of more than 7 percent compared to May 2013, according to the Houston Association of Realtors. It marked the first decline in year-over-year home sales for the Houston market since May 2011.

Home construction continues to lag behind demand, as high job growth draws more residents to the Houston area. Shad Bogany is immediate past chair of the Texas Association of Realtors.

“We have 2.8 months of inventory right now, and that’s up from the previous month at 2.6 [months of inventory], so people are putting their home on the market. That’s shows a little slight increase in months of inventory, but it’s not enough to offset the market.”

A balanced market, where the supply of homes matches demand, is generally defined as 6 months of inventory. That’s roughly where the national housing supply is now.

The combination of low inventory and high demand pushed up the average price of a single-family home by nearly 10 percent year-over-year to more than $280,000. That increase was driven entirely by sales of homes costing between $500,000 and $1 million. Home sales in all other price categories fell in May compared to a year earlier.

Subscribe to Today in Houston

Fill out the form below to subscribe our new daily editorial newsletter from the HPM Newsroom.

* required

Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media's coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments across Greater Houston. Before taking up his current post, Andrew spent five years as Houston Public Media's business reporter, covering the oil...

More Information