Now that we have reliable data from April, here’s what buyers and sellers should know about our Houston area market’s performance amid the COVID-19 crisis.
There are so many sources of information out there, and sadly most of what’s swirling around is misinformation. We’re here to give you the real statistics you need to stay informed and approach these confusing times with the proper perspective.
Since Houston is such a vast market, we figured we’d highlight the smaller Katy market as our example so that we’re able to take a deeper dive into the numbers.
In March 2019, there were a total of 343 homes sold at an average price per foot of $106, and an average sales price of just over $270,000. To start 2020, we had one of the busiest first quarters we’ve ever seen, and this surge of activity (fueled largely by interest rates) didn’t let up, even as the COVID-19 pandemic spread around the world. In March 2020, there were a total of 380 homes sold at an average price per foot of $109, and an average sales price of $300,000—an 11% increase.
Now, to be fair, it was in March that the world—and our nation especially—really had to face the magnitude of the health crisis; it was almost the middle of the month before COVID-19 was declared a pandemic, and many shelter-in-place orders were issued then. Social distancing and lockdown became our new reality toward the end of Q2. So, that being said, we should check out the first three weeks of April 2020 and compare them to April 2019.
In the first three weeks of April 2019, there were a total of 223 recorded sales at an average price per foot of just over $107, and an average sales price of $285,000. For the first three weeks of April 2020, 191 homes sold at an average price per foot of $112.50, and an average sales price of $305,000—up 7% from last year. Though the volume of sales is down, that’s to be expected for a global pandemic. Many folks simply didn’t feel comfortable coming onto the market, and a lot of folks who already were on the market withdrew, which is totally respectable. The real story here is one of encouragement: Prices are very strong.
As of the recording of this video, we have a total of 92 homes option pending (i.e., homes that went under contract within the last seven to 10 days). We have another 364 homes pending to close either this month or in May.
Nationally, housing inventory is down 34%, but here in the local Houston market we’re between 15% and 20% depending on price point and geographic location. What does this mean? Essentially, that data is correlated with a lowered amount of competition for sellers and fewer choices for buyers. Those who are active on this market are the serious ‘I need to do something’ buyers. There’s a huge advantage for those willing to make moves in the market right now.
We value and appreciate the opportunity to be your trusted real estate resource. If you have any questions about what was discussed in this message, or if you’re interested in buying or selling a home soon but aren’t sure how to proceed in these times, reach out to us by calling, texting, or emailing. We’re always here to help!