Sales of single-family homes plunged 19% in April, ending a nine-month string of year-over-year gains as Houston-area buyers and sellers hunkered down despite real estate transactions being considered an essential part of the economy.
"We were bracing for a rough report and we got it," John Nugent, chairman of the Houston Association of Realtors, said Wednesday in the group's monthly report on housing activity throughout the region.
When stay-home orders took effect in March, sellers took hundreds of properties off the market knowing activity would slow. Real estate agents continued to keep the market moving by meeting with clients via online platforms and holding virtual open houses. Property listing views on the association's website are now up almost 60% from this time last year, Nugent said.
Still, the downward slide is expected to continue. In addition to the fallout from the COVID-19 pandemic, Houston is contending with a severe oil bust, which is resulting in thousands of jobs cuts.
Late last month Ted C. Jones, chief economist with Stewart Title, predicted second-quarter homes sales would be off 35% and full-year 2020 sales would fall 25%.
Pending sales, an indication of futures closings, fell 17.6% in April, according to HAR, which tracks property sales handled through its Multiple Listing Service.
Homes in every pricing category suffered losses, with the steepest declines at the low and high ends of the market.
Even so, many moved forward with purchases. Buyers closed on 6,199 single-family homes in April at a median price of $251,000, which was up 2.4% from a year earlier.
Inventory of single-family homes was down in April as strong demand during the first quarter absorbed housing supply that was never backfilled by new listings, the association said.
Townhouse and condominium sales plunged 37.5% in April, with only 376 properties selling in April. The median price, however, jumped 12.2% to $181,750.
Leasing activity handled by local Realtors also slowed. Single-family lease transactions fell 4.1% in April from a year earlier and the average rent was off 1.7% to $1,765. Townhouse and condominium leases declined 9.5% with the average rent down 1.2% to $1,565.
