Houston home sales take a dive

FILE - Homes are shown for sale and under construction in the Springwoods Village subdivision, a new master-planned community near the Exxon Mobil campus, on Tuesday, Jan. 19, 2016, in Spring. A new report from the Houston Association of Realtors show local home sales have taken a serious dip in the month of July. less FILE - Homes are shown for sale and under construction in the Springwoods Village subdivision, a new master-planned community near the Exxon Mobil campus, on Tuesday, Jan. 19, 2016, in Spring. A new report from ... more Photo: Brett Coomer, Staff Photo: Brett Coomer, Staff Image 1 of / 71 Caption Close Houston home sales take a dive 1 / 71 Back to Gallery

Houston-area home sales fell 8.8 percent in July, the most severe decline since last winter and a sign that the economic slump may finally be catching up with the housing market.

Buyers closed on 7,204 single family homes in July at a median price of $230,000, the Houston Association of Realtors reported Wednesday.

While the association did not pin the decline on one thing, the Houston economy has been stressed under the weight of low oil prices and employers have cut tens of thousands of workers.

"It's hard to identify a single cause for the drop in sales, whether it's a possible trickle-down effect of falling oil prices or prospective buyers holding out, but Houston's housing market is still healthy overall," chairman Mario Arriaga said in a statement.

Sales were off in all price categories, with the worst declines in the lowest and highest ends of the market, according to the data, which is based on sales handled through the multiple listing service throughout throughout primarily Harris, Fort Bend and Montgomery counties.

Inventory, while still low by historical standards, reached 4 months in July, the highest it's been since the fall of 2012.

Townhome and condominium sales fell 7.4 percent in July. There were 649 units sold with a median price of $159,900. Inventory grew 3.5 months from 3 months last year.

Single-family leases were up 2.3 percent and townhome/condominium leases jumped 10.6 percent. The average rent for a single-family home was $1,879 per month and the average rent for townhomes/condominiums was $1,630.

"We never like to see a decline in home sales, but it's helpful to remember that our comparisons each month are to a record year in 2015," Arriaga said in a statement. "July was the first time in several months when even mid-range housing saw declines."

Here's how sales broke out in July:

Sales activity

Price range Change

Less than $80,000 -43.3%

$80,000-$150,000 -32.8%

$150,000-$250,000 -3.1%

$250,000-$500,000 -1.4%

$500,000 and above -21.7%

Share of sales

Less than $80,000 2.9%

$80,000-$150,000 14.1%

$150,000-$250,000 39.0%

$250,000-$500,000 34.2%

$500,000 and up 9.8%