Houston housing market

HAR Report: “For a true apples-to-apples comparison of the Houston housing market, you have to examine where we were before the pandemic, in 2019, and by that standard, we are in similar territory,” said HAR Chair Cathy Treviño with Side, Inc. “The traditional year-over-year comparison shows a market slowdown, but even then, there are positive trends in the form of moderating prices and growing inventory that bode well for spring homebuying.” 

 

Single family home prices fell for the first time since the spring of 2020. The average price dropped 2.4 percent to $385,103 and the median price declined 1.6 percent to $320,000. That is in sharp contrast to when prices reached record highs of $438,294 (average) in May 2022 and $353,995 (median) in June 2022.

Houston housing market

HOUSTON/HAR Report — (March 8, 2023) — As the Houston housing market continues to transition to pre-pandemic conditions, positive indicators are beginning to blossom. While February sales were down year-over-year, they were up compared to the last pre-pandemic February, in 2019. In addition, year-over-year pricing fell for the first time in more than two years and more homes were listed for sale. These are among the signs that would-be homebuyers have anticipated after moving to the sidelines last year when mortgage interest rates began to rise. 

 

According to the Houston Association of Realtors’ (HAR) February 2023 Market Update, single-family home sales fell 23.0 percent, with 5,723 units sold compared to 7,430 in February 2022. That marks the 11th consecutive monthly decline. However, when compared to the last February before the pandemic – February of 2019, with sales volume of 5,339 units – sales were up 7.2 percent.

 

All housing segments saw year-over-year declines in February. By contrast, both single-family and townhome/condominium rentals had solid gains, with buyers pivoting to the rental market until mortgage rates ease and inflation subsides. HAR will issue its latest report on rental trends in the February 2023 Rental Home Update, to be released next Wednesday, March 15. 

Houston housing market highlights

Houston Real Estate Highlights in January-HAR Report

• Single-family home sales fell 29.9 percent year-over-year, as the market tries to recover from economic headwinds;

• All housing segments experienced negative sales. 

• Days on Market (DOM) for single-family homes went from 39 to 59 days;

• Total property sales fell 30.9 percent with 5,650 units sold;

• Total dollar volume dropped 30.9 percent to $2.0 billion;

• The single-family average price rose 1.5 percent to $381,983; 

• The single-family median price increased 1.6 percent to $315,000;

• Single-family home months of inventory registered a 2.7-months supply, up from 1.3 months a year earlier;

• Townhome/condominium sales experienced their eighth straight monthly decline, falling 37.1 percent, with the average price down 4.3 percent to $230,775 and the median price down 7.7 percent to $191,000.

Townhouse/condo for sale/rent in Houston

Townhouse/Condominium Update-HAR Report

Townhouses and condominiums experienced their eighth consecutive monthly decline, dropping 37.1 percent year-over-year with 353 closed sales versus 561 a year earlier. The average price dropped 4.3 percent to $230,775 and the median price fell 7.7 percent to $191,000. Both figures are below the historic highs reached in April 2022. Inventory grew from a 1.5-months supply to 2.1 months. 

Houston housing segment

HAR Report: Days on Market, or the actual time it took to sell a home, grew from 39 to 59 days. Months supply registered 2.7 months compared to 1.3 months a year earlier. The current national supply stands at 2.9 months, as reported by NAR.

 

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

  • $1 - $99,999: decreased 17.0 percent

  • $100,000 - $149,999: decreased 24.3 percent

  • $150,000 - $249,999: decreased 35.1 percent

  • $250,000 - $499,999: decreased 29.6 percent

  • $500,000 - $999,999: decreased 22.6 percent

  • $1M and above: decreased 25.7 percent

HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 3,255 in January, down 36.8 percent from the same month last year. The average and median sales prices were unchanged at $374,519 and $300,000, respectively.

Houston housing market

HAR Report: For a pre-pandemic perspective, January sales are down 4.6 percent compared to January 2020, when a total of 4,772 single-family homes sold. The median price then was 34.0 percent lower at $235,000, and the average price, at $289,952, was 31.7 percent lower. Sales are 1.9 percent ahead of where they were five years ago, in January 2018, when volume totaled 4,462. Back then, the median price was $218,950 and the average price was $271,087 – reflecting pricing jumps of 43.9 percent and 41.0 percent, respectively.

Single family homes for sale/rent in Houston

Single-Family Homes Update-HAR Report

Single-family home sales fell 29.9 percent in January, with 4,549 units sold across the Greater Houston area compared to 6,492 a year earlier. Pricing continues to moderate after reaching record highs last spring. January’s median price increased 1.6 percent to $315,000 while the average price rose 1.5 percent to $381,983. Those are the lowest price increases since October 2019.

Houston housing market Comparison

January Monthly Market Comparison-HAR Report

January became the tenth consecutive month of negative sales, as the market recovers from strong economic headwinds, including inflation, elevated interest rates, pricing and lower inventory. Year-over-year single-family home sales fell 29.9 percent, but when compared to January 2020, just before the pandemic, sales were down only 4.6 percent; compared to January 2018, five years ago, sales were up 1.9 percent. 

 

The monthly housing measurements for January offer a mixed bag of readings. In addition to the drop in single-family home sales, total property sales and total dollar volume fell; single-family pending sales declined by 14.9 percent. Active listings (the total number of available properties) remained 63.4 percent ahead of their level a year ago.

 

Months of inventory continued to improve, growing to a 2.7-months supply in January. Housing inventory nationally stands at a 2.9-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-months supply is generally considered to make up a “balanced market” in which neither the buyer nor the seller has an advantage.

 

Houston housing market

HAR Report: “January was a continuation of the slowdown that began last year with an onslaught of challenging economic conditions,” said HAR Chair Cathy Treviño with Side, Inc. “I think what’s happening now reflects more of a return to seasonal home sales trending – slower volume during the holidays and new year – than a market in distress. Certainly consumers want assurances that inflation is subsiding, so if mortgage rates stabilize and homes continue hitting the market at more affordable price points, we could expect an upswing in sales later this year.”