The first year of the global pandemic – 2020 has caused the housing market to a screeching halt, not just in Houston but nationwide. Then came 2021 when a lot of people were looking to buy homes, the inventory was historically low, home construction slowed down due to building supply and labor shortages, and home prices were rising. Despite all this, the Houston real estate market last year is a record year. Let’s see first what has happened in the Houston real estate market last December 2021, according to the Houston Association of Realtors (HAR) before we dive into the Houston real estate market in 2022.
Houston Real Estate Highlights for December
- Single-family home sales in December declined 4.5% year-over-year with 9,272 units sold.
- Total December property sales fell 1.9% to 11,432 units.
Existing home sales totaled 7,358 showing a 2.7% increase versus the same month last year. - Total dollar volume for December rose 12.4% to $4.3 billion.
- The average price reached the second highest level of all time – 13.5% to $392,449 (second highest average price in history)
The median price rose 17.2% to an all-time high of $319,000. - Days on Market (DOM), or the number of days it took the average home to sell, dropped from 47 to 37.
- The average price of Townhouse/Condominium climbed 13.8% t to $258,139
- The median price of Townhouse/Condominium soared 20.9% to $220,000.
- Single-family home leases rose 5.9% while townhome/condominium leases fell 23%.
- The average rent for single-family homes was up 7.5% to $2,042; the average rent for townhomes/condominiums increased 5.5% t to $1,731.
- December sales by segment:
$1 – $99,999: decreased 45.3%
$100,000 – $149,999: decreased 41.5%
$150,000 – $249,999: decreased 39.2%
$250,000 – $499,999: increased 17%
$500,000 – $999,999: increased 41.4 %
$1M and above: increased 8.8%
Homes priced between $500,000 and $999,999 show the strongest monthly sales volume registered, homes in the $250,000 to $499,999 range came in 2nd, and the luxury homes segment ranked third.
December Monthly Market Comparison
Houston Real Estate Highlights for Full-Year 2021
- Single-family home sales for 2021 rose 10.3% to 106,229; 10.3% from the previous record of 96,271 in 2020.
- Sales of all property types for the year totaled 131,041, up 13.3% from 2020’s record volume (the third time in history that total property sales surpassed the 100,000 level).
- Total dollar volume for full-year 2021 jumped 28.2% to a record-setting $40 billion.
- June was the strongest month of the year for sales – 10,642 single-family units sold
- June was also the month where the market set a new record average price of $393,263.
- July was the month were greatest sales volume decline ay 6.7%.
- August carried the positive momentum forward with inventory peaking at a 1.8-months supply.
- October and December registered negative months for sales.
- July was the month were rent for a single-family home reached a record high of $2,162.
- June registered an all-time high of $1,801 for the rent of townhomes and condominiums.
- Not a single month of declining sales for townhomes and condominiums.
2021 Annual Market Comparison
Real estate was designated as an essential service in Houston. According to HAR, this has enabled realtors to continue working and assisting would-be homebuyers, as well as consumers looking for rental properties. Even as s stay-at-home orders began to be lifted, HAR has made it possible for consumers to attend open houses and property showings virtually
“It was impossible to know what 2021 would have in store for Houston real estate, especially as the surges in coronavirus variants began affecting our area, but the need for housing never abated and REALTORS delivered,” said HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene.
Investment Outlook – Houston Real Estate Market Predictions for 2022
After witnessing ‘the highs and lows‘ in property sales in the last 24 months in Houston, the Houston Association of Realtors (HAR) has provided Housing Market Predictions for 2022. But before we get to that, make sure to check the December 2021 and Full-Year review above. While these are predictions from the experts, here’s what the real estate market trends will be for 2022.
HAR: Housing Market Predictions for 2022
- There will be an an estimated 3% increase in home prices. First-time home buyers who are planning to buy a home this yea are advised to save as much money for downpayment.
- There will be a demand of homes from first-time buyers coming from those ages 26 to 35. This makes the millennials as the prime market for buying homes this year.
- Homes in the suburbs will bet the most competitive market as millions of people will migrate from the cities to suburban areas due to having remote jobs and entrepreneurship.
- There will be a demand for bigger homes as people continue working from home.
- Mortgage rates will increase, which affects affordability of mortgage.
Houston realtors, as well as buyers, sellers, and investors, are expecting the Houston real estate market to be less stressful in 2022. Despite the challenges in the past 2 years, Houston has remained the best market for investment in rental properties. So, if you’re thinking of buying your first home or first investment property this year it’s best to think long-term with your finances and property choices. And if you have made your decision, make sure that you have saved more than enough for your downpayment and get preapproved. Lastly, work with a licensed real estate agent or realtor to help you navigate the complicated process of home buying or home selling from start to finish.
About ApexPro Real Estate
ApexPro Real Estate Group is a full-service real estate brokerage specializing in single-family and attached residential properties throughout Houston and the surrounding areas. We are a privately-held small business that brings together top agents, cutting-edge technology, and unparalleled service to help clients throughout Houston to buy and sell real estate — and enjoy themselves every step along the way. Our client reviews exhibit our dedication to helping our clients extends beyond the closing table and we would love to earn your business.