Houston's Housing Market Revisited, Post Hurricane Harvey Disaster

According to Realtor.com's Chief Economist, Danielle Hale, "After the Hurricane Harvey, the pace of home sales in Houston abruptly shifted, and the age of inventory increased from a year ago from September through February. At the same time, listing growth stalled, dropping from double-digit growth in August 2017 to flat in November and December 2017, and beginning to decline in January 2018."

Hale continues, "Starting in November 2017, listing prices began to rise modestly, perhaps initially due to a shift in quality. Starting in March 2018 and continuing through May 2018, we see overall inventory moving quickly again. In fact, in a nod toward normalcy, homes are moving off of the market faster than they did last spring."

Realtor.com reports the following post-Harvey Houston housing market data:

There are fewer homes on the market.

• The number of homes for sale had been increasing for roughly two years before the hurricane, but has declined since. This sales decline is likely in part due to limited inventory, which has shrunk though it had been growing before the hurricane hit.

• This is especially true in the areas most affected by the storm. In the 51 zip codes where more than 20 percent of homes had damage, the number of listings increased only 2 percent in September and then declined from a year ago starting in October through April.

Prices are rising.

• Weak price growth and some months of slipping prices were common before the hurricane, but that trend reversed after the hurricane hit.

• Listing prices had been growing more consistently in areas hardest hit by flooding before the hurricane, and price growth continued in these areas after the hurricane.

Homes are selling at a record pace.

• While properties sat on the market a bit longer in the immediate aftermath (Oct 2017), they are now moving at an all-time record pace.

• Homes in areas that were most affected by the hurricane have seen greater interest than the county since 2015, and that level of interest picked up post-hurricane starting in November 2017.

People still want to move to Houston.

• Looking at overall Realtor.com traffic, in 2017Q1, there were 45 shoppers looking to move into Houston for every 100 shoppers looking to move out. 

• In 2018Q1 this ratio had improved, with 54 shoppers looking to move into Houston for every 100 shoppers looking to move out. This continued interest has helped make Houston's housing market resilient.