Houston Real Estate Update: October 2014 – Home Sales Continue To Soar

Houston Real Estate Update: October 2014 – Home Sales Continue To Soar

Inventory shrinks slightly and prices climb as the home buying frenzy continues



The following is the most recent Houston MLS Report, published by the Houston Association of Realtors. The data covers Houston homes for sale and real estate trends from the last twelve months (September 2013 – September 2014).

September Houston Real Estate Milestones:

  • Single-family home sales rose 7.0 percent versus September 2013;
  • Total property sales were up 7.0 percent year-over year;
  • Total dollar volume climbed 15.7 percent, increasing from $1.7 billion to $2 billion on a year-over-year basis;
  • At $196,000, the single-family home median price achieved a record high for an September;
  • At $269,440, the single-family home average price also reached an September high;
  • Days on Market for single-family homes was 47, slightly above July’s record low of 45 days;
  • Rentals of single-family homes shot up 13.2 percent year-over-year and the cost of renting those homes increased 2.7 percent to $1,749.
  • Townhouse/condominium rentals rose 8.8 percent, with rents flat at $1,533.


Houston Real Estate Resources


Houston Real Estate Updates in September

The fall home buying season began with gusto in Houston as sales and prices did in September what they have done for months – rose. The continued buying frenzy caused housing inventory to shrink very slightly after holding steady for two consecutive months. And in another scenario that has become all too familiar in this market, prices reached record one-month highs.

According to the latest monthly report prepared by the Houston Association of Realtors (HAR), single-family home sales totaled 6,490 units, an increase of 7.0 percent compared to September 2013. Months of inventory, an estimate of the time required to deplete the current active housing inventory based on the previous 12 months of sales activity, dipped to a 2.9-months supply from a 3.2-months supply last September. It remains well below the current national supply of 5.5 months of inventory.

The average price of a single-family home jumped 8.2 percent year-over-year to $269,440. The median price—the figure at which half the homes sold for more and half for less—rose 7.7 percent to $196,000.


houston neighborhood map


September sales of all property types totaled 7,879 units, a 7.0-percent increase compared to the same month last year. Total dollar volume for properties sold soared 15.7 percent to $2 billion versus $1.7 billion a year earlier.

“As long as consumers continue to snap up homes at the current pace, replenishing our housing inventory will be a slow process,” said HAR Chair Chaille Ralph with Heritage Texas Properties. “Rental numbers were strong in September, suggesting that many would-be home buyers are continuing to go the lease route until the market bears the homes they’re looking for at the price point that suits them.”


September Monthly Market Comparison

The Houston housing market experienced across-the-board gains in September, with total property sales, total dollar volume and average and median pricing all up when compared to September 2013.

Month-end pending sales for all property types totaled 4,143. That is up 17.2 percent compared to last year and is considered a bellwether of continued positive sales activity next month. Active listings, or the number of available properties, at the end of September was 28,946 and is 10.8 percent below last year.

Houston’s housing inventory, after holding steady at a 3.0-months supply in July and August, shrank in September to a 2.9-months supply versus 3.2 months a year earlier. That compares to a 5.5-months supply of inventory across the U.S. recently reported by the National Association of Realtors.


Total property sales 7,362 7,879 7.0%
Total dollar volume $1,733,076,889 $2,005,556,946 15.7%
Total active listings 32,457 28,946 -10.8%
Total pending sales 3,536 4,143 17.2%
Single-family home sales 6,064 6,490 7.0%
Single-family average sales price $248,948 $269,440 8.2%
Single-family median sales price $182,000 $196,000 7.7%
Single-family months inventory* 3.2 2.9 -10.0%

* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.


Single-Family Homes Update

September single-family home sales totaled 6,490, up 7.0 percent from September 2013.

Home prices reached record highs for a September in Houston. The single-family average price increased 8.2 percent from last year to $269,440 and the median price climbed 7.7 percent year-over-year to $196,000. Transactions continued to close at a near-record pace. The number of days a home took to sell¬, or Days on Market, was 47. In July it reached a record low of 45 days.

Broken out by housing segment, September sales performed as follows:

  • $1 – $79,999: decreased 20.7 percent
  • $80,000 – $149,999: decreased 8.8 percent
  • $150,000 – $249,999: increased 10.2 percent
  • $250,000 – $499,999: increased 16.5 percent
  • $500,000 – $1 million and above: increased 26.7 percent

HAR also breaks out the sales figures for existing single-family homes. In September, existing home sales totaled 5,715. That is up 10.2 percent from the same month last year. The average sales price increased 6.8 percent year-over-year to $250,966 while the median sales price jumped 7.5 percent to $182,800.

Townhouse/Condominium Update

After two months of declines, sales of townhouses and condominiums rose 7.4 percent in September versus one year earlier. A total of 625 units sold last month compared to 582 properties in September 2013. The average price increased 7.5 percent to $195,064 and the median price shot up 10.7 percent to $150,500. Inventory reached to a 2.5-months supply versus a 3.1-months supply a year earlier.

Lease Property Update

Lease properties showed strong demand in September as inventory of for-sale properties remained tight. Single-family home rentals soared 13.2 percent compared to September 2013, while year-over-year townhouse/condominium rentals increased 8.8 percent. The average rent for a single-family home was up 2.7 percent to $1,749 and the average rent for a townhouse/condominium was flat at $1,533.

The computerized Multiple Listing Service of the Houston Association of REALTORS® includes residential properties and new homes listed by 25,000 REALTORS® throughout Harris, Fort Bend and Montgomery counties, as well as parts of Brazoria, Galveston, Waller and Wharton counties. Residential home sales statistics as well as listing information for more than 50,000 properties may be found on the Internet at http://www.har.com.

The information published and disseminated to the HAR Multiple Listing Services is communicated verbatim, without change by Multiple Listing Services, as filed by MLS participants.

The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported since November 1998 includes a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures. (Single-family detached homes were broken out separately in monthly figures beginning February 1988.)

Founded in 1918, the Houston Association of REALTORS® (HAR) is a 26,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest individual dues-paying membership trade association in Houston as well as the second largest local association/board of REALTORS® in the United States.

Find Your Perfect Home

About the author:

Get More Details

Paige Martin

Our Recent Awards

Why We’re Different

  • #1 Keller Williams Realtor in Houston
  • #1 Keller Williams Realtor in Texas
  • #5 Keller Williams Realtor in the U.S.
  • "One of Houston's Top 25 Realtors," Houston
    Business Journal
  • "One of America's Best Realtors," RealTrends.com / WSJ
  • Over $500 Million in Houston residential home sales
  • We know this market, and this property.
  • We're candid.
  • We'll tell you the "bad' and the "ugly" about any property we show you.
  • Most often, we talk our clients into NOT BUYING.
- Gretchen & Brad Richter- Gretchen & Brad Richter
“We relocated to Texas from out of state 3 years ago, and Paige’s intimate knowledge of Houston neighborhoods, valuations, trends, and pitfalls was simply unmatched. We would never have been able to find our perfect home without her. She was calm and focused when everything seemed most challenging — a true professional and advocate who has become a dear friend. We are grateful to have met her!

Read More

- Peter McGillivray & Jillian Jopling- Peter McGillivray & Jillian Jopling
“Paige demonstrated all qualities you want in a realtor – knowledgeable, attentive, responsive, patient. She put us into our first dream home, and due to that experience, we’ve returned to her time and again for our other real estate needs. You will quickly realize after working with Paige that while she focuses on completing your deal, her endgame is to ensure her clients’ needs are preserved and satisfied.

Read More

- Gail & Ian Mackey- Gail & Ian Mackey
“As first time buyers in the US, we are delighted to have worked with Paige. She is a delight to work with, and I would recommend anyone to enlist her help if you’re looking to either buy or sell a property.

Read More

- Dr. Jen Shroff- Dr. Jen Shroff
“Paige is simply the best. She was patient with us throughout the process and took time to answer all of our questions! She knows so much about the housing market so we felt very confident that we were in great hands!

Read More

- Travis LeConey- Travis LeConey
“Paige has helped my wife and I twice now. I couldn’t think of a better person to have in your corner when buying or selling! She guided us through the process, and made it seem so easy that selling/buying was fun! Paige is a great person, very responsive, and great at what she does. I recommend Paige to all my friends and co-workers. If you are buying or selling in the area Paige covers, give her a call. You won’t regret it!

Read More

- Xavier Refunjol- Xavier Refunjol
“Paige is dedicated, thorough and caring to where you feel you’re their only client. Their best asset is their honesty, based on experience and data. We had a great time buying our first home largely because of them. We would not hesitate to recommend them to anyone.

Read More

- Taylor Lamb- Taylor Lamb
“Paige was wonderful to work with. She was thorough, knowledgeable and patient. I would highly recommend Paige to anyone looking to buy or sell a home.”

Read More

- Jeremy & Lynn Greene- Jeremy & Lynn Greene
“Paige Martin is the best Realtor. She is highly experienced and very knowledgeable. She made our buying experience an enjoyable one, not only for us, but for our daughter, son-in-law and several of our friends. We have bought and sold many houses, and Paige has been the best realtor we have ever worked with. We highly recommend her.

Read More

- Dr. Forrest Roth, MD- Dr. Forrest Roth, MD
“Paige is the best of the best when it comes to real estate! She has bought & sold many properties for us & we couldn't recommend her more highly!

Read More

- Tina Spiller, Chevron- Tina Spiller, Chevron
“I really enjoyed working with Paige on the sale of my townhome. The HAR listing was perfect and went up quickly and the sale was closed within 30 days. I definitely recommend Paige for any real estate transaction.

Read More

Read 100+ Testimonials: LinkedIn for the Best Houston Realtor

What We Can Do For You


Our promise is to always give you the most candid advice on any property, to help you make the best decision for your family.


Having sold over $500M of Houston homes, we've seen the good, bad & ugly and can help you avoid problems.


We built a proprietary data analytics package to help give you the best information on any neighborhood, building or home.


Built over fifteen years, our network of experts can help you through each step of the process plus help making living in your new home more enjoyable.

Latest Houston Real Estate Stories

Read more Houston real estate updates

Back to Top