Houston Real Estate Sales Booming Faster than Texas Oil

Texas oil is big in the “good old” lone star state. But the real estate market in Texas is just as big as oil these days. Or perhaps bigger than oil. Houston real estate sales are booming.

That assessment depends on who you talk with.

Houston Real Estate Sales on Fire

Real estate sales in Houston are on fire, burning up the city and the greater Houston area with steady sales as buyers continue to take advantage of lower interest rates following the nation’s coronavirus pandemic.

It’s the wild, wild, west out here in Houston’s Bayou’s city housing market. Houses are selling quick as an eye blink. The voluminous real estate sales are driven in part by record low mortgage rates.

How long the cheaper mortgage rates last is anyone’s guess. Investors, including consumers purchasing a second house and with super-rich Wall Street firms in on the action of buying more homes, intensifies the competition.

richard miranda houston association of realtors.
Richard Miranda, Houston Association of Realtors.

“The Houston market is not just hot. It’s on fire; we have too many buyers chasing too few listings,” said Richard Miranda, Chairman of the Houston Association of Realtors, in an interview with local KPRC Channel 2 reporter Bill Spencer.

According to Houston Association of Realtors (HAR) the latest market update of single-family home sales were up 3.6 percent compared to last June, whereby, 10,638 units sold versus 9,362. These figures represent the market’s thirteenth consecutive positive month of sales.

Sales Volume and Speed

During May alone, Houston-area homes spent approximately 29 days on the market, a 28 day decrease from June 2020.

“The good news from Houston, the negative impact from the energy decline was made up for in the strong surge in demand mainly from the pandemic effect,” said Jim Gaines, in a Houston Chronicle article. Gaines is a research economist with the Real Estate Center at Texas A&M University.

This past May netted almost a 50 percent increase in sales volume compared to the same month last year when the coronavirus rocked the real estate industry. Homes priced up to and above $750,000 led the sales volume with a 136.5 percent year-over-year increase. On National average, sales of new single-family homes as of June 2021 were at a seasonally adjusted annual rate of 676,000, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development.

“We’re seeing a big uptick in single-family rental homes,” Gaines stated.

“You don’t find too many people buying $2 million homes and converting them to rent.” But, Gaines added, “You find a lot of people buying $200,000 homes to rent them out.”

Since the coronavirus lockdown, people find solace within the confines of their homes because the coronovarius forced more Americans to spend more time at home.

Extra high-dollar luxury homes dominated the Houston market in June. These homes priced at or above $750,000, saw a 136.5 percent increase in sales.

Homes priced $500,000 – $749,999, saw an 87 percent increase, and homes priced $250,000-$499,999, saw a 25 percent increase in sales.

Total property sales in May 2020 reached 7,781. Comparatively, this year in May 2021, 12, 100 properties sold.

new home for sale. Image by Paul Brennan from Pixabay
new home for sale. Image by Paul Brennan from Pixabay

Greater Houston Area Home Sales in 2021

Market Area# TransactionsAv. Sales Price
Humble Area South8$155,719
Northeast Houston199$167,948
Medical Center South451$198,471
Five Corners214$206,495
Humble Area West168$207,034
1960/Cypress Creek South302$213,702
Spring East473$214,477
Willowbrook South132$216,301
Cleveland Area274$217,826
Baytown/Harris County596$218,198
Stafford Area101$226,051
Baytown/Chambers County79$227,453
Humble Area East245$231,852
Bear Creek South721$235,621
Willis Area147$236,797
Northwest Houston654$238,250
La Porte/Shoreacres196$238,630
Denver Harbor143$243,491
Lomax Area24$246,550
Crosby Area280$248,541
Deer Park192$250,168
Katy – North774$251,094
Sharpstown Area98$252,265
University Area166$253,624
Mission Bend Area350$257,170
Downtown – Houston1$257,710
Conroe Northeast182$258,280
Conroe Southeast469$262,838
Missouri City Area704$267,379
Kingwood NW/Oakhurst194$269,466
Huffman Area123$270,899
Brays Oaks342$274,538
Porter/New Caney East387$276,036
Porter/New Caney West258$282,095
Shoreacres/La Porte31$283,370
Kingwood West390$283,583
Atascocita South429$285,853
1960/Cypress Creek North160$286,523
Copperfield Area403$287,634
Fort Bend South/Richmond833$294,501
Atascocita North122$296,814
Jersey Village86$297,108
East End Revitalized249$313,956
Champions Area646$324,077
Alvin North724$334,617
Tomball South/Lakewood362$337,417
Medical Center Area80$340,812
League City945$350,564
Clear Lake Area561$352,286
Oak Forest West Area140$354,656
Sugar Land East97$354,726
Fort Bend County North/Richmond1036$355,215
Sugar Land North219$358,928
Cypress North909$362,534
Lake Conroe Area1214$362,984
Katy – Old Towne631$363,003
Montgomery County Northwest59$366,235
Willow Meadows Area83$371,680
Eldridge North172$373,429
Kingwood East289$380,405
Fall Creek Area101$381,427
Spring Northeast1073$383,578
Kingwood South50$392,736
Cypress South883$393,964
Katy – Southeast671$394,122
Fulshear/South Brookshire/Simonton340$403,767
Shepherd Park Plaza Area99$404,285
Magnolia/1488 West329$405,950
Sienna Area547$406,497
Fort Bend Southeast30$419,167
Magnolia/1488 East408$426,719
Sugar Land West574$427,086
Cottage Grove143$427,926
Conroe Southwest642$432,006
Spring Branch749$436,522
Meyerland Area169$440,002
Energy Corridor358$442,677
Katy – Southwest1468$443,899
Tomball Southwest143$471,440
Washington East/Sabine67$491,718
Knollwood/Woodside Area73$492,084
Midtown – Houston45$494,671
Briargrove Park/Walnutbend115$520,943
Rice Military/Washington Corridor208$521,344
Sugar Land South368$551,148
Oak Forest East Area244$586,662
The Woodlands1281$613,130
Heights/Greater Heights784$643,337
Garden Oaks66$670,248
Westchase Area61$778,694
River Oaks Shopping Area54$802,804
Memorial West267$959,006
Bellaire Area158$986,635
Upper Kirby23$1,005,793
Rice/Museum District123$1,037,229
Braeswood Place59$1,079,905
Highland Village/Midlane17$1,194,759
Greenway Plaza7$1,401,643
Royden Oaks/Afton Oaks28$1,467,277
Briar Hollow9$1,467,308
West University/Southside Area187$1,469,215
Memorial Park21$1,613,888
Memorial Close In17$1,703,719
Memorial Villages163$1,759,053
Tanglewood Area68$1,802,235
River Oaks Area79$3,141,883
Source: Houston Association of Realtors’ Multiple Listing Service (MLS)

Market Views

As expected there are slightly different takes on what’s really fueling this real estate boom in the Bayou city of Houston and what we can expect before this year ends.

Speaking as an expert in Houston’s Outsmartmagazine.com, realtor Becky Wheeler said the Coronavirus pandemic was definitely challenging but that her business gradually increased.

“Technology has made things easy for me to market my listings online. The hottest selling homes right now are those with a great patio or outdoor space.” Home-office space is in demand as well, Wheeler explains.

Realtor Brooks Ballard, also speaking in Outsmart, said, “that sales are up in different markets and price points, and a lot of it is attributed to people seeing the stability in owning a home.” Ballard said the lower interest rates allow for the purchase of a larger home with a home office or more green space.

Realtor David Batagower told Outsmart, “Record low interest rates increased the purchasing power for many home buyers and a surge of buyers relocating to Houston from both the east and west coasts where $1million is ‘entry level’ in some of those(limited)markets.”

Batagower, explaining the differences in real estate markets in different states, says the same $1 million “gets you into the luxury market in many parts of Houston.”

Real estate agent Johnna Little says, “We’ve got people flocking here from California and other areas just because our housing is so affordable.” Little proudly recalls she sold a California woman a 3-bedroom, two-bath, renovated house with a pool for $191,500. “She was very happy.”

Here are the top 20 Houston real estate agents, according to Homelight.

houston real estate sales booming. Image by F. Muhammad from Pixabay
Houston real estate sales booming. Image by F. Muhammad from Pixabay

Buying a Home in Houston

Nick and Aly O’ Neal, sired a child while paying top dollars to rent an apartment. The couple’s big dream besides having a child was to own their home.

The O’Neals are one couple out of thousands in a nationwide real estate boom that’s making Houston a perfect spot to find a luxury home for less interest rates, homes that sell for more than the asking price.

Then, suddenly, the O’Neals received an email alert about a new home that fit their budget and was listed on Sugarland on Har.com.

According to a Houston Chronicle article published on April 19, 2021 the O’Neal couple toured the home on Thursday and decided they liked the place. So, their offer for the home surpassed the original price of $255,000. Once the bidding war settled the O’Neals moved into the luxury Sugar Land home.

“To be in the game, you have to play in the game,” said Nick O’ Neal, in the Chronicle.

Here is a link which guides consumers step-by-step to buying a home in the Houston area: https://www.houstonproperties.com/home-guide/home-buying-process

Inner-Loop Exclusives

According to Houston Properties.Com, Houston’s most exclusive places in the inner-loop of Houston to find a home and live are the following spots:

  • Afton Oaks / Royden Oaks
  • Bellaire
  • Braeswood Place
  • Briar Hollow
  • Cottage Grove
  • Downtown Houston
  • Houston Heights
  • Greenway Plaza
  • Timbergrove / Lazybrook
  • Medical Center
  • Memorial Center
  • Memorial Park
  • Midtown
  • Montrose
  • Rice Military
  • Rice / Museum District
  • River Oaks
  • River Oaks Shopping Area
  • Upper Kirby
  • West University
  • East Downtown Houston

Real estate agent Thurayah McBride of the McBride Home Group shares valuable advice on Houston real estate sales with potential homebuyers.

“If you want to greatly improve your chances of getting the house you want; ‘tip number one would be to write a pretty strong offer to the seller, assuring the seller, that you the client, can close on time, and that you can close faster than any other interested clients,” Thurayah told KPRC TV reporter Bill Spencer.

“The Houston housing market is in overdrive right now, and we know anecdotally that out-of-town investors have contributed to the frenzy,” said Chairman Richard Miranda.

Miranda continued. “We saw similar investment activity following Hurricane Harvey, and within a few months, the market stabilized. We expect stability to return this time around, so anyone in the market for a home who is frustrated by current market conditions needs to be patient.”

Newsblaze Finance & Business Writer Clarence Walker can be reached at: [email protected]

Clarence Walker
As an analyst and researcher for the PI industry and a business consultant, Clarence Walker is a veteran writer, crime reporter and investigative journalist. He began his writing career with New York-based True Crime Magazines in Houston Texas in 1983, publishing more than 300 feature stories. He wrote for the Houston Chronicle (This Week Neighborhood News and Op-Eds) including freelancing for Houston Forward Times.Working as a paralegal for a reputable law firm, he wrote for National Law Journal, a publication devoted to legal issues and major court decisions. As a journalist writing for internet publishers, Walker's work can be found at American Mafia.com, Gangster Inc., Drug War Chronicle, Drug War101 and Alternet.His latest expansion is to News Break.Six of Walker's crime articles were re-published into a paperback series published by Pinnacle Books. One book titled: Crimes Of The Rich And Famous, edited by Rose Mandelsburg, garnered considerable favorable ratings. Gale Publisher also re-published a story into its paperback series that he wrote about the Mob: Is the Mafia Still a Force in America?Meanwhile this dedicated journalist wrote criminal justice issues and crime pieces for John Walsh's America's Most Wanted Crime Magazine, a companion to Walsh blockbuster AMW show. If not working PI cases and providing business intelligence to business owners, Walker operates a writing service for clients, then serves as a crime historian guest for the Houston-based Channel 11TV show called the "Cold Case Murder Series" hosted by reporter Jeff McShan.At NewsBlaze, Clarence Walker expands his writing abilities to include politics, human interest and world events.Clarence Walker can be reached at: [email protected]