Houston housing market

HOUSTON,HAR Report — (October 12, 2022) — Consumers kept the high end of the Houston housing market humming in September even as the market collectively continued transitioning to more normal, pre-pandemic levels. Sales overall were off for a sixth consecutive month due largely to the persistent lack of inventory and inflationary headwinds that include rising interest rates. However, the inventory landscape is showing signs of improvement for consumers as an uptick in new listings helped boost overall supply to its highest level in two years. 

According to the Houston Association of Realtors’ (HAR) September 2022 Market Update, single-family home sales fell 17.0 percent, with 7,664 units sold compared to 9,235 in September 2021. On a year-to-date basis, the market now trails 2021’s record-setting volume by 5.1 percent.

Houston housing market highlights

Houston Real Estate Highlights in August-HAR Report

• Single-family home sales fell 16.9 percent year-over-year, the fifth decline of 2022 as the market continues toward a more normalized, pre-pandemic pace;

• Days on Market (DOM) for single-family homes ticked up from 27 to 31 days;

• The ‘Close to Original List Price Ratio’ for single-family homes has now remained below 100 percent for two consecutive months, meaning fewer buyers paid above list price for homes on the market;

• Total property sales were down 15.8 percent with 10,157 units sold;

• Total dollar volume was off 9.4 percent at $3.9 billion;

• The single-family average price rose 8.7 percent to $411,671; 

• The single-family median price increased 10.8 percent to $341,950;

• Single-family home months of inventory registered a 2.5-months supply, up from 1.7 months a year earlier. That is the greatest inventory level since August of 2020;

• Townhome/condominium sales experienced their third consecutive monthly decline, falling 14.9 percent, with the average price up 7.2 percent to $254,383 and the median price up 8.1 percent to $217,000.

Townhpuse/condo for sale/rent in Houston

Townhouse/Condominium Update-HAR Report

Townhouses and condominiums experienced their third consecutive monthly decline, falling 14.9 percent year-over-year with 684 closed sales versus 804 a year earlier. The average price increased 7.2 percent to $254,383 and the median price rose 8.1 percent to $217,000. Both figures are below the historic highs reached in April 2022. Inventory fell from a 2.4-months supply to 2.0 months.

Single family homes for sale/rent in Houston

Single-Family Homes Update-HAR Report

Single-family home sales fell 16.9 percent in August with 8,241 units sold across the Greater Houston area compared to 9,918 a year earlier. In August, the median price climbed 10.8 percent to $341,950 while the average price rose 8.7 percent to $411,671. 

For a pre-pandemic perspective, August sales are down 5.0 percent compared to three years ago, in August 2019, when a total of 8,673 single-family homes sold. The median price then was 36.8 percent lower, at $249,975, and the average price, at $310,139, was 32.7 percent lower. However, sales are 35.3 percent above where they were five years ago, in August 2017, when volume totaled 6,090. Back then, the median price was $230,000 and the average price was $294,963 – reflecting pricing jumps of 48.6 percent and 39.6 percent, respectively. It is worth noting that the 2017 figures were affected by Hurricane Harvey.

Days on Market, or the actual time it took to sell a home, grew slightly, from 27 to 31 days. Inventory registered a 2.5-months supply compared to 1.7 months a year earlier. That is the greatest supply of homes on the market since August of 2020. The current national inventory stands at 3.3 months, as reported by NAR.

Broken out by housing segment, August sales performed as follows:

• $1 - $99,999: decreased 28.1 percent

• $100,000 - $149,999: decreased 24.4 percent

• $150,000 - $249,999: decreased 43.6 percent

• $250,000 - $499,999: decreased 10.6 percent

• $500,000 - $999,999: increased 10.0 percent

• $1M and above: decreased 13.5 percent

HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 6,739 in August, down 20.3 percent from the same month last year. The average sales price rose 8.8 percent to $408,030 while the median sales price increased 8.9 percent to $330,000. Those figures are significantly below the pricing records that were set earlier this year.

Houston housing market

August Monthly Market Comparison-HAR Report

Homebuyers continued to take a break from the market in August amid the pressures of record home prices and rising interest rates, keeping home sales in negative territory for a fifth straight month. Year-over-year single-family home sales fell 16.9 percent. On a year-to-date basis, sales are lagging just 3.7 percent behind last year’s record pace.

Market indicators yielded mixed readings in August. In addition to the drop in single-family home sales, total property sales and total dollar volume of sales experienced declines and pending sales slid 11.0 percent. Active listings (the total number of available properties) jumped 31.1 percent.

Months of inventory grew again in August, reaching a 2.5-months supply. That is the highest level since August of 2020 when it was 2.6 months. Housing inventory nationally stands at a 3.3-months supply, according to the latest report from the National Association of Realtors (NAR). A 6.0-months supply is generally considered make up a “balanced market,” in which neither the buyer nor the seller has an advantage.

Houston housing market

HAR Report: As in July, all housing segments experienced negative sales in August except the $500,000 to $1 million segment, which rose 10.0 percent. The smallest decline in sales was recorded among homes priced between $250,000 and $500,000, which fell 10.6 percent. With few homes available for sale at or below $250,000, many consumers have postponed purchase plans or shifted their focus to rental properties. [HAR’s Monthly Rental Home Update for August will be released next Wednesday, September 21]. 

“We are easing our way back to the housing market that existed prior to the pandemic,” said HAR Chair Jennifer Wauhob with Better Homes and Gardens Real Estate Gary Greene. “For the past two years, Houston housing has been like a runaway train, and what we’ve been seeing most recently is an engineer, finally at the throttle, applying the brakes so the train can pull safely into the next station. It’s important to note that transactions are still happening, just not at a whirlwind pace or record pricing levels, and that is perfectly healthy.”

Houston housing marke

HOUSTON/HAR Report — (September 14, 2022) — The Houston housing market continued easing its way to pre-pandemic levels with an August that marked the fifth consecutive month of declining sales and rising inventory. However, a surge in single-family leases demonstrates that consumers didn’t just suspend purchases due to rising prices and interest rates, but they pivoted to the rental market. These factors have enabled housing inventory to grow to its highest level in two years. 

According to the Houston Association of Realtors’ (HAR) August 2022 Market Update, single-family home sales fell 16.9 percent, with 8,241 units sold compared to 9,918 in August 2021. That is the lowest one-month sales volume since February 2022. On a year-to-date basis, the market now trails 2021’s record-setting volume by 3.7 percent. 

Houston housing market

Houston Real Estate Highlights in July-HAR Report

• Single-family home sales fell 17.1 year-over-year, their fourth and biggest decline of 2022 as the market continues on the path toward a more normalized, pre-pandemic pace;

• Days on Market (DOM) for single-family homes was flat at 26;

• The ‘Close to Original List Price Ratio’ for single-family homes fell below 100 percent for the first time since April 2022, meaning that most buyers did not pay above list price for homes on the market;

• Total property sales were down 17.4 percent with 10,180 units sold;

• Total dollar volume was off 9.0 percent at $4.1 billion;

• The single-family average price rose 9.9 percent to $426,494; 

• The single-family median price increased 12.7 percent to $348,740;

• Single-family home months of inventory registered a 2.5-months supply, up from 1.7 months a year earlier. That is the greatest inventory level since August of 2020;

• Townhome/condominium sales experienced their second consecutive monthly decline, falling 21.5 percent, with the average price up 5.0 percent to $257,834 and the median price up 9.7 percent to $220,000.

Townhouse/condo for sale/rent in Houston

Townhouse/Condominium Update-HAR Report

Townhouses and condominiums experienced their second consecutive monthly decline, dropping 21.5 percent year-over-year with 656 closed sales versus 836 a year earlier. Last month’s sales drop was the first one since August of 2020. The average price increased 5.0 percent to $257,834 and the median price rose 9.7 percent to $220,000. Both figures are below the historic highs reached in April 2022. Inventory fell from a 2.5-months supply to 2.0 months. 

Houston housing days in the market

HAR Report: Days on Market, or the actual time it took to sell a home, held steady year-over-year at 26 days. Inventory registered a 2.5-months supply compared to 1.7 months a year earlier. That is the greatest supply of homes on the market since August of 2020. The current national inventory stands at 3.0 months, as reported by NAR.

Broken out by housing segment, July sales performed as follows:

• $1 - $99,999: decreased 39.4 percent

• $100,000 - $149,999: decreased 34.9 percent

• $150,000 - $249,999: decreased 49.6 percent

• $250,000 - $499,999: decreased 9.2 percent

• $500,000 - $999,999: increased 10.1 percent

• $1M and above: decreased 11.6 percent

HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 6,921 in July, down 20.3 percent from the same month last year. The average sales price rose 10.4 percent to a $427,931 while the median sales price jumped 11.5 percent to $340,000, the second highest of all time.