2024 Annual Market Comparison-HAR Report
Volatile mortgage interest rates created a complex landscape for the Houston housing market during the first half of 2024. The year started on solid footing with steady sales, but there was a shift when the spring homebuying season got off to a sluggish start. Home sales were up and down through the spring and summer months. When the Federal Reserve implemented its first of three rate cuts in September to combat inflation, it provided a boost in confidence to prospective homebuyers, even though mortgage rates were not greatly impacted. However, rates did ease from the 20-year high of eight percent that was seen in 2023 to the high-six and seven percent range. Home sales topped 2023 levels from September through December.
Expanding inventory also helped fuel the increase in market activity, offering opportunities for buyers and sellers. At the outset of 2024, inventory was at a 3.2-months supply. In August through November, it grew to a 4.4-months supply, the highest level since September 2012 when the market had a 4.7-months supply. In December, inventory stood at a 4.0-months supply. A 4.0- to 6.0-months supply has traditionally been considered a “balanced market” in which neither buyer nor seller has an advantage.