Realtor Heaven

The hottest real estate market in America: Houston home sales rack up another record month

Houston’s housing market recorded the third-highest sales total in the city’s history in June with record-high prices and fast-paced dealing continuing a torrid tone this summer.

The Houston Association of Realtors reported 7,220 single-family Houston area houses were sold last month. With records going back many years, the only times the monthly sales total was higher was in June, 2006 and this past May.

“The real (estate) market remains very, very, very strong,” said Amy Bernstein of Bernstein Realty. “There continues to be a strong demand and a small supply of homes for people to purchase.”

The recent uptick in mortgage rates has motivated many “fence-sitter” buyers to start pursuing a home purchase before rates go up some more, Bernstein said. Rates for 30-year mortgages are still below 5 percent, which is not high compared to the 1980s when rates were above 10 percent.

“The real (estate) market remains very, very, very strong."

Buyers are also moving quickly now to get a home secured so they can register their kids for school, Bernstein said.

Sellers often receive multiple offers when they list their house for sale. Prices are going up, with record high prices reported in June.

The median price of a Houston single-family home — the midpoint at which half the homes sold for more and half for less — rose 13 percent to $192,000, up from $170,000 in June 2013, the Houston Realtors reported. The average price increased 14 percent year-over-year to $268,085.

June sales of Houston townhouses and condominiums increased 10 percent from one year earlier. A total of 604 units sold in June, compared to 548 properties in June of last year.

The low mortgage rates and Houston’s economic boom have been driving the housing surge. Houston, boosted by the energy business, has added 91,000 new jobs over the last year, one of the best job growth markets in the nation. June represented the 25th consecutive month that home sales have increased.

The inventory of homes for sale has been very tight. But the inventory did not tighten further in June. It remained unchanged in June from the 3.3-month level it reached in May. By comparison, the inventory of single-family homes across the United States stands at 5.1 months. Both represent very tight inventories. A six-month supply is considered a balanced market.

“The Houston housing market plowed full-steam ahead through another month and most Realtors I know have never been busier,” said HAR Chairman Danny Frank with Prudential Anderson Properties.

“The fact that inventory has leveled off month-over-month suggests that we may finally be starting to see enough homes listed for sale to keep up with demand.”

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bang for your buck

These are the 6 most affordable ZIP codes for Houston renters

Facebook / City of Bellaire, Texas

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Trying to afford buying a home in Houston is difficult enough with current mortgage rates, and doubly so if you're already paying high rent on an apartment or a house. But there are six Houston ZIP codes where renters can get the most bang for their buck, according to a new study by financial services company CashNetUSA.

To find the most affordable ZIP codes to rent in the U.S., analysts compared median household incomes by ZIP code to the average annual rent costs using the Zillow Observed Rent Index. ZIP codes where the average annual rental costs required the lowest percentage of median household income were considered the "most affordable."

Two Houston-area ZIP codes specifically stood out in CashNetUSA's ranking of the most affordable ZIP codes for renters in America: 77401 in Bellaire (No. 9) and 77094 in the Energy Corridor (No. 12).

According to the study's findings, the average monthly cost of a rental in Bellaire comes out to $2,401.25, and the median annual income of a Bellaire household is $210,577. Analysts then calculated that the annual rent of a home in the Bellaire ZIP code only takes up 13.68 percent of a household's median income, which is the ninth-lowest in the nation.

But as Houstonians know all too well, Bellaire residents aren't exactly struggling to pay their rent, seeing as they live in one of the wealthiest places in America.

Meanwhile in Houston's 77094 ZIP, annual rent costs only represent 13.88 percent of a household's median annual income. The area – which encompasses the Kingsland Estates, Green Trails, Green Trails Oaks, Windsor Park Estates, Windsor Park Lakes, and Barker neighborhoods – has a median household income of over $168,000, and average rent costs add up to $1,944.58, according to the study.

CashNetUSA found the No. 1 most affordable ZIP code for renters nationwide is 66224 in Leawood, Kansas, where annual rent only takes a 10.57 percent cut out of a household's median annual income.

Elsewhere in Texas, San Antonio's 78248 ZIP ranked as the No. 4 most affordable ZIP code for renters in the U.S., and the No. 1 most affordable ZIP code statewide. The North Texas ZIP code 75013 in Allen ranked two spots behind Houston to claim the No. 14 spot nationally.

The most affordable Houston ZIP codes for renters
CashNetUSA further unveiled the five most affordable ZIP codes across major U.S. cities, including in Houston, Austin, and San Antonio.

Following 77094 (which took the No. 1 spot citywide) is 77008 (No. 2), which spans Greater Heights, Houston Heights, Shady Acres, and Lazybrook/Timbergrove. Rent costs in this ZIP code averaged out to $1,856 per month, the report found.

Landing in the No. 3 spot is 77024, which includes four of Houston's historic Memorial Villages, including Hedwig, Bunker Hill, Hunters Creek, and Piney Point. The report said average rent in the area comes out to $1,730 per month, which takes up 16.88 percent of a household's median annual income.

The remaining top two most affordable ZIP codes for Houston renters are located in 77007 (Washington Avenue Coalition/Memorial Park, Rice Military, and Crestwood/Glen Cove) and 77345 in Kingwood, which is about 30 miles north of downtown Houston.