2018 year end market update

While the Houston market set records for all of 2018, its momentum is slowing. While the number of sales in 2018 was up 3.8%, and sales dollar volume up a whopping 21.5%, December sales compared to 2017 dropped 4.1%. The median price of homes sold in December was $240,000, up 3.3% from last December. The inventory of homes for sale increased 13.3% compared to a year ago, and at the current velocity of sales we have 3.5 months of inventory available compared to 3.2% a year ago. The average days on market for a house to sell increased from 63 to 64, so is stable. Both lease and sale properties are requiring price reductions from recent sales comparables to move. Houston’s economy remains strong, but I feel a sluggishness moving in that may mark the passing of a peak.