by Calculated Risk on 5/12/2021 02:06:00 PM

From the HAR: Houston Real Estate Tears Through April at a Record Pace

Low interest rates inspired consumers to snap up high-end homes in April at a pace never before seen, sending prices to new highs while keeping home inventory at historic lows. It must be noted that, as in March, some figures contained in this latest housing report are distorted because they compare to the same month last year when real estate was just beginning its recovery from coronavirus-related lockdown orders that halted most of the business.

According to the latest Houston Association of Realtors (HAR) Market Update, single-family homes sales were up 47.4 percent compared to last April with 9,105 units sold versus 6,175 a year earlier. That represents the biggest one-month year-over-year sales volume increase of all time and is the market’s eleventh consecutive positive month of sales. On a year-to-date basis, home sales are 24.4 percent ahead of 2020’s record pace.

Homes priced from $750,000 and above led the charge in sales volume in April with a staggering 164.3 percent year-over-year surge. That was followed by the $500,000 to $750,000 segment, which soared 132.2 percent. With high-end homebuying overshadowing the marketplace, pricing climbed to new record levels. The single-family home average price rose 20.0 percent to $371,854 and the median price increased 17.6 percent to $295,000.

Sales of all property types totaled 11,348. That is up 58.3 percent from April 2020. Total dollar volume for the month rocketed 85.9 percent to just under $4 billion.
emphasis added

Inventory declined 42.9% year-over-year from 39,906 in April 2020 to 22,794 in April 2021.   This is just 1.4 months of supply.

Note that inventory was up less than 1% in April compared to the previous month (March 2021).