Houston housing market

HAR Report: “We are seeing improvement after more than a year of negative home sales due largely to rising interest rates and inflation/recession jitters among consumers,” said HAR Chair Cathy Treviño with Side, Inc. “While the Houston real estate market is finally operating at a more normal pace, we need to understand that any volatility in the national economy, including more signs of inflation, could set us back again.”

Single-family home prices declined for the fifth time since the spring of 2020. The average price edged down 0.5 percent at $431,092 while the median price fell 2.5 percent to $345,000. That keeps pricing below the record highs of $438,350 (average) in May 2022 and $354,000 (median) in June 2022.

Houston housing market

HOUSTON — (July 12, 2023) -HAR Report— Home sales across Greater Houston were down for a 15th straight month in June, however signs of improvement have begun to appear as showings and pending home sales outpace 2022 trends. 

According to the Houston Association of Realtors’ (HAR) June 2023 Market Update, single-family home sales were down 12.8 percent year-over-year with 8,582 units sold compared to 9,845 in June 2022. When stacked up against pre-pandemic June 2019, however, home sales were up 3.9 percent. Months supply of homes climbed to 3.1, the highest level since June 2020.

Homes priced at $1M and above saw their first gain in months, climbing nearly six percent in June. On the other end of the spectrum, sales of homes priced below $150,000 also landed in positive territory with other segments experiencing declines. Rentals of single-family homes and townhomes/condominiums were strong. HAR will publish its June 2023 Rental Home Update next Wednesday, July 19. 

Houston real-estate Highlights

Houston Real Estate Highlights in May-HAR Report

• Single-family home sales were down 10.4 percent year-over-year, the 14th consecutive month of slowing sales volume but the lowest rate of decline since June 2022, suggesting that improved market conditions may be looming;

• Compared to pre-pandemic 2019, single-family home sales were down just 1.3 percent, however they were up 6.4 percent versus the volume five years ago, in May 2018;

• All housing segments experienced sales declines except homes priced below $100,000; 

• Days on Market (DOM) for single-family homes rose from 30 to 48 days;

• Total property sales fell 12.5 percent with 10,476 units sold;

• Total dollar volume dropped 12.7 percent to $4.3 billion;

• The single-family median price dropped 3.1 percent to $340,095;

• The single-family average price fell 1.6 percent to $431,378; 

• Single-family home months of inventory registered a 2.8-months supply, up from 1.5 months a year earlier;

• Townhome/condominium sales experienced their 12th straight monthly decline, falling 26.1 percent, with the median price down 6.0 percent to $216,300 and the average price down 3.7 percent to $262,015;

• Compared to pre-pandemic 2019, townhome and condominium sales were down 7.7 percent.

Houston Townhouse/Condominium for sale/rent Update

Townhouse/Condominium Update-HAR Report

Townhouses and condominiums experienced their 12th consecutive monthly decline in May, falling 26.1 percent year-over-year with 614 closed sales versus 831 a year earlier. The average price fell 3.7 percent to $262,015 and the median price dropped 6.0 to $216,300. Inventory grew from a 1.3-months supply to 2.6 months, the highest level since March 2021. 

Houston housing market

HAR Report: Days on Market, or the actual time it took to sell a home, increased from 30 to 48 days. Months of inventory registered a 2.8-months supply compared to 1.5 months a year earlier. The current national supply stands at 2.9 months, as reported by NAR.

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

• $1 - $99,999: increased 11.1 percent

• $100,000 - $149,999: decreased 12.3 percent

• $150,000 - $249,999: decreased 6.7 percent

• $250,000 - $499,999: decreased 9.4 percent

• $500,000 - $999,999: decreased 15.2 percent

• $1M and above: decreased 15.5 percent

HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 6,484 in May, down 16.2 percent from the same month last year. The average price fell 2.6 percent to $431,582 and the median sales price declined 4.6 percent to $334,000.

Houston housing market

HAR Report: For a pre-pandemic perspective, May sales were down just 1.3 percent compared to May 2019, when a total of 8,749 single-family homes sold. The May 2023 median price of $340,095 is 36.0 percent higher than it was in 2019 ($250,000) and today’s average price of $431,378 is 34.3 percent higher than it was then ($321,323). Sales are 6.4 percent ahead of where they were five years ago, in May 2018, when volume totaled 8,117. Back then, the median price was $244,015 and the average price was $305,245.

Houston single family home for sale/rent

Single-Family Homes Update-HAR Report

Single-family home sales fell 10.4 percent year-over-year in May with 8,637 units sold across the Greater Houston area compared to 9,641 in 2022. Pricing continues to moderate after reaching record highs last spring. The May average price fell 1.6 percent to $431,378 while the median price declined 3.1 percent to $340,095. February 2023 marked the first pricing declines the Houston housing market had seen in more than two years.

Houston housing market

HAR Report: Months of inventory showed continued improvement in May, expanding to a 2.8-months supply. Housing inventory nationally sits 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 has long been regarded as reflecting a “balanced market” in which neither the buyer nor the seller has the upper hand.

Houston housing market Comparison

May Monthly Market Comparison-HAR Report

May marked the 14th straight month of negative sales as Houston and real estate markets across the country continue trying to overcome persistent economic headwinds. Year-over-year single-family home sales were down 10.4 percent, but when compared to May 2019, before the pandemic, sales dropped just 1.3 percent, and stacked against May 2018, five years ago, they were up 6.4 percent.

In addition to the drop in single-family home sales, total property sales and total dollar volume also fell below last year’s levels, but at lesser rates of decline than in previous months. Single-family pending sales were down 2.3 percent. Active listings, or the total number of available properties, came in 45.4 percent ahead of the 2022 level.

Houston housing market

HAR Report: “Houston housing has been in negative territory for 14 months, however this latest report showed a notable easing in declines and may be a bellwether of improving market conditions ahead,” said HAR Chair Cathy Treviño with Side, Inc. “Unfortunately, there still are looming influences out there that remain out of our control, including interest rates, a possible deepening of inflation or a drift toward recession. Any one of those could slam the brakes on home sales.” 

Single-family home prices fell for the fourth time since the spring of 2020. The average price dipped 1.6 percent to $431,378 while the median price fell 3.1 percent to $340,095. That keeps pricing below the record highs of $438,350 (average) in May 2022 and $353,995 (median) in June 2022.