HAR Report: All housing segments experienced declines in January. By contrast, single-family home rentals had another solid gain, demonstrating that prospective buyers continue to pivot to the rental market until mortgage rates ease and other inflationary concerns dissipate. HAR will report on rental trends in the January 2023 Rental Home Update, to be released next Wednesday, February 15.
Houston housing market
HOUSTON — (February 8, 2023)/HAR Report — January was an expectedly slow month for home sales across the Houston area coming out of the holidays and easing back into the more familiar pre-pandemic trending of the start of a new year. While sales were down, there were positive indicators for consumers considering reviving their homebuying quests this year, including more robust inventory and moderating prices.
According to the Houston Association of Realtors’ (HAR) January 2023 Market Update, single-family home sales fell 29.9 percent, with 4,549 units sold compared to 6,492 in January 2022. That marks the tenth consecutive monthly decline. However, when compared to the last January before the pandemic – January of 2020, with sales volume of 4,772 units – sales were down just 4.6 percent.
Houston housing market highlights
Houston Real Estate Highlights for December and Full-Year 2022-HAR Report
2022 marked the first year of declining home sales for the Houston market since 2015, with 95,113 single-family homes sold versus 106,756 in 2021 – a decline of 10.9 percent; .
Total dollar volume for full-year 2022 fell just 2.0 percent to $45.6 billion;
December single-family home sales fell 32.6 percent year-over-year with 6,378 units sold;
Total December property sales dropped 34.5 percent to 7,634 units;
Total dollar volume for December fell 32.4 percent to $2.9 billion;
At $330,000, the single-family home median price rose 3.8 percent;
The single-family home average price climbed 5.1 percent to $409,777;
Single-family homes months of inventory expanded 2.7-months supply;
Townhome/condominium sales spent the latter half of 2022 with declining sales, and in December, volume fell 46.1 percent with the average price down 6.6 percent to $241,502 and the median price down 2.3 percent to $214,999;
Townhome/condominium inventory grew from a 1.7-months supply to 2.0 months.
Townhpuse/condo for sale/rent in Houston
Townhouse/Condominium Update-HAR Report
In June, townhome and condominium sales experienced the first decline, and the trend continued throughout the rest of 2022. December volume fell 46.1 percent with 438 units sold versus 812 a year earlier. The average price dropped 6.6 percent to $241,502 while the median price fell 2.3 percent to $214,999. Inventory improved from a 1.7-months supply to 2.0 months.
Houston housing market segment
HAR Report: Broken out by housing segment, December sales performed as follows:
$1 - $99,999: decreased 22.3 percent
$100,000 - $149,999: decreased 29.1 percent
$150,000 - $249,999: decreased 42.8 percent
$250,000 - $499,999: decreased 29.7 percent
$500,000 - $999,999: decreased 19.6 percent
$1M and above: decreased 34.8 percent
Single family homes for sale/rent in Houston
December Single-Family Homes Update-HAR Report
Single-family home sales totaled 6,378, down 32.6 percent from December 2021. That marked the ninth consecutive negative sales month of 2022 as well as the steepest decline. The median price rose 3.8 percent to $330,000. The average price increased 5.1 percent to $409,777. Pricing gains slowed significantly during the last three months of 2022 compared to the double-digit jumps that prevailed during the first six months of the year. Days on Market (DOM), or the number of days it took the average home to sell, rose from 38 to 57.
Houston housing market Comparison
December Monthly Market Comparison-HAR Report
The Houston housing market generated mixed results in December. Single-family home sales, total property sales and total dollar volume fell compared to December 2021 while pricing rose. Month-end pending sales for single-family homes totaled 5,493, down 19.6 percent versus one year earlier. Total active listings, or the total number of available properties, surged 55.2 percent from a year earlier to 33,776.
Single-family homes inventory grew from a 1.4-months supply to 2.7 months. For perspective, housing inventory across the U.S. currently stands at a 3.3-months supply, according to the latest National Association of Realtors (NAR) report.
Houston housing market
HAR Report: By the time the books were closed on December transactions, 95,113 single-family homes had sold across greater Houston in 2022. That is a 10.9 percent decline from the 106,756 homes sold in 2021.
On a year-to-date basis, the average price rose 10.0 percent to $413,657 while the median price increased 12.8 percent to $338,295. Total dollar volume for full-year 2022 fell 2.0 percent to $45.6 billion.
Houston’s lease market had a generally strong 2022 as prospective buyers secured homes to rent until they are prepared to resume the buying process. HAR will report on those trends in the December 2022 Rental Home Update, to be released next Wednesday, January 18.
Houston housing market Comparison
2022 Annual Market Comparison-HAR Report
The Houston real estate market began 2022 with strong momentum coming off the second year of the pandemic in record territory. However, conditions changed when the average price soared to a record high of $438,301 in May and the median price jumped to its own all-time high of $353,995 in June. Between that and a stubborn lack of inventory, many would-be homebuyers found themselves squeezed out of the market, especially as efforts by the Fed to stave off inflation drove mortgage rates from the three percent range in April to more than seven percent in November. Monthly sales volume tapered, falling in April and every month thereafter. This ultimately made 2022 the first year of declining sales since 2015.
On a positive note, an uptick in new listings eventually provided a measurable boost to inventory levels, pushing it past the 2.0-months supply level for the first time in two years. It reached a 2.0-months supply in June and by December was at a 2.7-months supply. Its highest level was 2.8 months in October and November.
June had the year’s strongest sales volume with 9,844 single-family units sold.
Houston housing market
HAR Report: For the month of December, single-family home sales dropped 32.6 percent. That marks the ninth straight monthly decline of 2022 and the steepest. Sales volume fell in all segments of the market, with the greatest drop, 42.8 percent, among homes priced between $150,000 and $250,000. That was followed by the $1M and above segment, which saw a 34.8 percent year-over-year decline.
The median price of a single-family home – the figure at which half of the homes sold for more and half sold for less – was $330,000 in December. That is the third straight month it has held at that level and is 3.8 percent higher than last December. The average price of $409,777 was up 5.1 percent compared to last year.