Houston Market Continues Its Explosion in July
According to a report from the Houston Association of Realtors, the city of Houston had its biggest single month of home sales ever in July. This continues the housing boom of 2013 that has seen dramatic increases in the number of homes sold and the sharp rise in home prices. All of this has been fueled by lower interest rates, which ticked up slightly last week for the second time in as many months, and a substantial increase in the number of jobs added by local employers over the past year.
I've written about my personal experience with buying a house a couple times recently and these numbers certainly line up with what I've seen. What is particularly interesting is that the biggest gains came from relatively expensive houses.
Sales of homes between $500,000 and $1 million were up more than 55 percent and home sales from $250,000 to $499,999 were up almost 39 percent. Even sales homes from $150,000 to $249,999 were up over 32 percent.
The only decrease was in sales of homes under $80,000 which went down nearly 30 percent in July.
The good news for those concerned about a repeat of the 2008 housing bubble is that the number of homes on the Houston market has increased slightly over the last month indicating that as fall comes -- fall and winter are typically slower for home sales -- prices should begin to come back into better balance.
But, interest rates appear poised to continue their slow but gradual climb, so there is a lot to weigh for those interested in purchasing a home this summer, but isn't there always?