Houston Real Estate in February: Sales Up 2% YoY, Inventory Down 38% YoY

From the HAR: Houston Real Estate Remains Insulated from February’s Arctic Blast

The deadly and disruptive winter storm that left many Houston-area homes without power and water even after mild temperatures returned did little to chill local real estate in February. While the freak weather event delayed some closings due to plumbing-related repairs and property damage, sales of single-family homes rose for a ninth straight month. The increase was also achieved despite an ever-shrinking supply of homes and the first uptick in mortgage rates since last summer – all with the backdrop of the coronavirus pandemic.

According to the latest Houston Association of Realtors (HAR) Market Update, 6,049 single-family homes sold in February compared to 5,979 a year earlier. That translates to a 1.2 percent increase. Once again, luxury housing was the top-performing segment among homebuyers.

Sales of all property types totaled 7,464 – up 1.9 percent from February 2020. Total dollar volume for the month rose 17.3 percent to $2.4 billion.

The monthly sales readings were positive across the board. Single-family home sales, total property sales and total dollar volume all rose compared to February 2020. Pending sales climbed 11.6 percent. However, total active listings – or the total number of available properties – fell 37.9 percent as fewer new listings entered the market.
emphasis added

Inventory declined 37.9% year-over-year from 38,517 in February 2020 to 23,933 in February 2021.   This is just 1.6 months of supply.

Note that the closed sales in February were probably impacted by the weather. These sales were for contracts that were mostly signed in December and January.