HOUSTON,HAR Report — (June 14, 2023) — May became the Houston housing market’s 14th consecutive month of negative home sales, but the decrease in volume was the smallest in almost a year. That and moderating declines in other market readings may be an indication that the worst of the housing sales slowdown is over, provided there are no further hikes in mortgage interest rates – a major deterrent to home purchases in Houston and across the country through the latter half of 2022 and all of 2023.
According to the Houston Association of Realtors’ (HAR) May 2023 Market Update, single-family home sales were down 10.4 percent year-over-year with 8,637 units sold compared to 9,641 in May 2022. That is the smallest drop since June 2022 when volume was down 7.6 percent. When compared to pre-pandemic May 2019, home sales were down just 1.3 percent. In addition, inventory remains well above the historic lows of 2022, presenting more options for prospective buyers as we move deeper into the traditionally busy homebuying season.
All but the sub-$100,000 housing segment experienced declines in May when compared to 2022. Single-family rentals benefited again from strong consumer demand as many would-be homebuyers continued to scoop up rental homes amid uncertainty about interest rates and inflation. HAR will publish its May 2023 Rental Home Update next Wednesday, June 21.