Houston home sales plunged more than 20% in April from year-ago figures as sellers took properties off the market and buyers stayed home through the coronavirus-induced shutdown, a housing economist said Tuesday, citing an early estimate.
The decline came as the region's real estate market was outpacing other Texas cities, Jim Gaines, chief economist of the Texas A&M Real Estate Center, said during an online presentation to the Greater Houston Builders Association.
First-quarter sales were up 10% and the median price was about 5% above the same period a year earlier.
March single-family closings, which were up 8.2% year-over-year, may represent the last increase the area sees for a while.
"It does look like buyers are anxious to buy, but they're just delaying it," Gaines said.
Still, with mortgage rates at historic lows, housing could be a bright spot in the economic recovery, he said. Low interest rates will stimulate demand, but only if the jobs come back and pent-up demand builds from consumers who are putting off buying until the pandemic subsides.
Lenders, though, are being more stringent. JPMorgan, for example, said last month it would increase its minimum lending standards requiring borrowers to have at least 20% to put down and a credit scores of at least 700.
