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Home Trends

Year to Date:
YTD (through end of October) single-family home sales total 58,087, up 1.3 percent from 57,333 sales during the same period in ’15.(4) Inventory levels grew slightly from a 3.5-month supply to 3.8 month supply.(5)

Measured by Month:
Despite continued strains within the energy industry and jitters surrounding the outcome of the presidential election, the Houston housing market held steady for a second straight month according to the Houston Association of Realtors (HAR). (5)
Houston-area single-family home sales were nearly unchanged in September from one year ago(4)
Home sales in October were statistically unchanged compared to October 2015.(5)
Both median and average price home sales reached record highs for an October.(5)Homes priced between $150,000 and $500,000 experienced positive sales volume while the market’s high and low ends saw declines, mirroring September’s trends.(5)
The single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 6.3 percent to $218,000 in October.That marks the highest median price ever for an October.(5)
The average price increased 2.2 percent to $277,904, which also represents an October high.(5)
October sales of all property types in Houston totaled 7,120, up a fractional 0.7 percent from the same month last year. Total dollar volume for properties sold in October rose 1.4 percent to $1.9 billion.(5)

City of Houston building permits YTD:
Down 14% for all types of properties(2)
Permits for single-family homes rose 8.6%(2)

Houston Housing Summary
Houston remains the 2nd strongest new home market in the country.(3)
Although Metrostudy anticipates a total year over year 9% to 10% decline in Houston single family starts at the conclusion of 2016, Houston’s housing market continues to prove to be resilient given the recent downturn.(3)
"The Houston housing market continues to demonstrate its strength by holding steady in the midst of a weakened energy sector and uncertainty about the presidential election,” said HAR Chairman Mario Arriaga with First Group. “Even without those influences, autumn traditionally marks a period of slower sales, so we are extremely pleased to see the market keeping pace with last year’s record levels."(5)

Job Growth

Job growth, though significantly less than in the recent past - has remained positive throughout the end of October, with the addition of 14,500 additional jobs (net growth). (3)

Supersector Breakdown
Leisure and hospitality had the largest annual job gain among Houston’s supersectors adding 22,400 jobs since July 2015.
The 7.3-percent local rate of job growth in this supersector was more than double the national rate of 2.7 percent.
The local industry’s gains were concentrated in food services and drinking places, which added 18,800 jobs during the period.
The education and health services supersector added 14,800 jobs, a 4.0-percent rise from July 2015.
Nationally, employment in this industry rose 2.8 percent.
Locally, the hospital industry had the largest job gain, 4,800, an increase of 5.8 percent.
Government employment expanded by 7,900 jobs over the year, with local government accounting for nearly all of the increase, up 6,600.
Three-fourths of the local government employment gain was in educational services, which added 5,000 jobs during the period.
In the Houston area, total government employment increased 2.2 percent compared to a 0.8-percent gain nationally.
Trade, transportation, and utilities–the area’s largest supersector–added 4,900 jobs, up 0.8 percent from July 2015 to July 2016.
The area’s retail trade industry gained 8,000 jobs, an increase of 2.7 percent; this local job gain was partially offset by declines in two local industries, wholesale trade and transportation and utilities.
Nationally, the trade, transportation, and utilities supersector expanded 1.4 percent.
The financial activities supersector added 3,000 jobs from July 2015.
Employment in financial activities rose at a 2.0-percent pace in both the Houston metropolitan area and nationwide. (1)

Houston Employment Summary
According to the U.S. Bureau of Labor Statistics, the Houston metropolitan area created 14,200 jobs (not seasonally adjusted) between August 2015 and August 2016. Most of the job growth occurred in education and healthcare, trade, transportation and utilities, and professional services. (6)

Retail Market Trends

Market Info
Houston’s retail market continues its remarkable expansion by adding approximately 1.3M SF of newly delivered space and 4.1M SF under construction.
According to our data provider, CoStar Property, Houston ranks second nationally, slightly outpaced by Dallas/Ft. Worth in construction activity.
Approximately 83.4% of the retail space under construction at the close of Q3 2016 is pre-leased.
Despite the 1.3M SF of new inventory delivered in Q3 2016, Houston’s average retail vacancy rate remains historically low at 5.7%, 0.1% lower than the 5.8% recorded in the previous quarter. (6)

Tenant Trends
Houston continues to attract new tenants to the market.
Pinstripes, a restaurant and entertainment bowling venue, signed a lease at The Kirby Collection, which is under construction and expected to deliver December 2017.
Shake Shack opened its first Houston location in the newly renovated section of the Galleria I.
Maryland-based Total Wine & More recently opened its first Houston location in Northwest Houston in The commons at Willowbrook.
Drive-thru grocery concept Farm Stores, has announced plans to open its first Houston-area location in 2017. (6)

 

Sources
Bureau of Labor Statistics(1)
Houston Chronicle (2)
Metrostudy (3)
Greater Houston Partnership (4)
MLS Press Release (https://www.har.com/content/mls) (5)
Colliers (6)

Thursday, December 1, 2016