Houston housing market softening a bit?

HOUSTON – During spring and summertime, buyers eagerly waited in their cars or on sidewalks for open houses to start, and sellers collected stacks of offers well above asking price. However, data from the Houston Association of Realtors (HAR) show this frenzy may be starting to ease.

"The market has definitely softened somewhat, especially the low end," said Dr. James Gaines, research economist with the Real Estate Center at Texas A&M University.

In August, sales were up just 1.1 percent over a year earlier, according to HAR. Still, Gaines said, it is important to remember the comparisons are being made against 2013, a record year for the local housing market.

During August, 7,505 single-family homes changed hands across the Houston area. Inventory remained at a three-month supply, but it’s up from a record low of 2.6 months earlier this year.

Year-over-year sales have been flat because of the lack of inventory, said Robert Gilmer, director of the Bauer Institute for Regional Forecasting at the University of Houston.

With strong job and population growth, "I don’t see much immediate relief on the demand side as the economy continues to expand rapidly," Gilmer said.

More single-family construction should help ease the market’s tightness, though it will take time.

Builders developed 34,000 houses last year and through July are on track for only a few more this year, Gilmer said.