Single-family home sales for Greater Houston totaled 6,490 units last month, according to the latest numbers from the Houston Association of Realtors. That’s up 7 percent from September of last year. The average price of a home came to $269,440 — an increase of 8.2 percent, year over year.
Shad Bogany, immediate past chair of the Texas Association of Realtors, worries the rapid rise in prices could wind up hurting Houston’s growth prospects. “The reason so many people are moving to Texas and moving to Houston specifically is because of the job market and the affordability of housing,” Bogany says. “Well, when you start off that your average price is $269,000, I think the affordability has almost gone out the door there.”
New home construction across Greater Houston remains far short of demand. Inventory dropped back to 2.9 months in September, after holding at a 3-month supply in July and August. Inventory measures how long it would take to sell out the entire listed supply of housing. A balanced market, where the supply of homes matches demand, is generally defined as six months.