Good news: Demand. Bad news: Supply.

We’re still riding the record-low rates wave, but the coincidence of low inventory should bring us to shore soon.

It’s been a great summer for Houston real estate, with new records getting set month after month. August was the month for luxury sales ($750,000 and up), surging a mighty 40.3 percent compared to August 2019. As expected, this had a significant impact on single-family median and average pricing, both climbing 8% respectively and setting record highs for an August in any year.

Now for the bad news: Inventory. Supply simply can not keep up with this level of consumer demand, and we have reached our lowest level of inventory in the past 5 years. We can have endless buyers, but with nothing to buy, we should expect sales to begin waning.

“August was the third straight positive month for Houston real estate, but with a dwindling supply of homes entering the market, we expect sales volume to resume a more normalized pace for this time of year,” said HAR Chairman John Nugent with RE/MAX Space Center. “Consumers can still benefit from record low interest rates, however constrained inventory doesn’t offer them many housing options, which is unfortunate.”

For the full August HAR Press Release, click here.