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Single-Family Homes Update- HAR Report
Single-family home sales fell 8.5 percent year-over-year in July with 7,557 units sold across the Greater Houston area compared to 8,256 in 2022. Pricing continues to stabilize after soaring to record highs last spring. The July average price rose just 0.6 percent to $428,140 while the median price dropped 2.3 percent to $340,000.
July Monthly Market Comparison-HAR Report
July was the 16th straight month of negative sales as Houston. Year-over-year single-family home sales fell 8.5 percent, but when compared to July 2019, before the pandemic, sales were down 15.3 percent, and compared to July 2018, five years back, they were down 5.8 percent. The 8.5 percent decline is the smallest since the market registered a 7.6 percent drop in June 2022.
In addition to the decline in single-family sales volume, total property sales and total dollar volume also fell below last year’s levels. Total dollar volume was $3.7 billion, down from $4.0 billion a year earlier. Single-family pending sales rose 12.1 percent. Active listings, or the total number of available properties, were 13.2 percent ahead of the 2022 level.
Months of inventory increased in July, expanding to a 3.2-months supply. That is the greatest months supply since May 2020 when it was 3.3 months. Housing inventory nationally sits at a 3.1-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-months supply has traditionally been considered a “balanced market” in which neither buyer nor seller has the advantage.
HAR Report: “Each passing month has moved the Houston housing market closer to what we consider normal, with seasonal influences, but consumers are still understandably taking a cautious approach to the homebuying process, and many are ultimately choosing to rent,” said HAR Chair Cathy Treviño with LPT, Realty.
Single-family home prices continue to stabilize. The average price edged up just 0.6 percent to $428,140 while the median price fell 2.3 percent to $340,000. That keeps pricing below the record highs of $438,350 (average) in May 2022 and $354,000 (median) in June 2022.
HOUSTON — (August 9, 2023) -HAR Report— Even with some indicators in negative territory, the Houston housing market continues to demonstrate that it is returning to a more normal state as it moves beyond the pandemic and the challenges posed by rising interest rates. Home sales across Greater Houston were down for a 16th straight month in July, but the rate of decline was the smallest in more than a year.
According to the Houston Association of Realtors’ (HAR) July 2023 Market Update, single-family home sales fell 8.5 percent year-over-year with 7,557 units sold compared to 8,256 in July 2022. That is the lowest decline since sales dropped 7.6 percent in June 2022. Months supply of homes climbed to 3.2, the highest level since May 2020 when it was 3.3. When compared to pre-pandemic July 2019, however, home sales were down 15.3 percent.
The sub-$100,000 housing segment, which represents just 1.2 percent of all homes on the market, was the only segment to experience a gain. Rentals of single-family homes and townhomes/condominiums continue to be strong. HAR will publish its July 2023 Rental Home Update next Wednesday, August 16.
Houston Real Estate Highlights in June-HAR Report
Single-family home sales were down 12.8 percent year-over-year, the 15th consecutive month of slowing sales volume, however there were signs of overall improvement to the local housing market;
Compared to pre-pandemic 2019, single-family home sales were up 3.9 percent and were up 2.3 percent versus the volume five years ago, in June 2018;
The luxury segment, consisting of homes priced from $1M and above, saw its first gains in months, climbing 5.9 percent year-over-year in June;
Days on Market (DOM) for single-family homes rose from 28 to 45 days;
Total property sales fell 13.7 percent with 10,382 units sold;
Total dollar volume dropped 13.4 percent to $4.2 billion;
The single-family median price dropped 2.5 percent to $345,000;
The single-family average price fell 0.5 percent to $431,092;
Single-family home months of inventory registered a 3.1-months supply, up from 1.9 months a year earlier – the biggest supply in three years;
Townhome/condominium sales experienced their 13th straight monthly decline, falling 17.5 percent, with the median price down 2.5 percent to $217,000 and the average price down 2.7 percent to $252,845;
Compared to pre-pandemic 2019, townhome and condominium sales were up 5.1 percent.
Townhouse/Condominium Update-HAR Report
Townhouses and condominiums experienced their 13th consecutive monthly decline in June, falling 17.5 percent year-over-year with 617 closed sales versus 748 a year earlier. The average price fell 2.7 percent to $252,845 and the median price dropped 2.5 percent to $217,000. Inventory grew from a 1.6-months supply to 2.8 months, the highest level since March 2021.
HAR Report: Days on Market, or the actual time it took to sell a home, increased from 28 to 45 days. Months of inventory registered a 3.1-months supply compared to 1.9 months a year earlier. The current national supply stands at 3.0 months, as reported by NAR.
Broken out by housing segment, June sales performed as follows:
$1 - $99,999: increased 1.1 percent
$100,000 - $149,999: increased 1.1 percent
$150,000 - $249,999: decreased 1.1 percent
$250,000 - $499,999: FLAT
$500,000 - $999,999: decreased 2.5 percent
$1M and above: increased 5.9 percent
HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 6,536 in June, down 16.4 percent from the same month last year. The average price was unchanged at $434,999 and the median sales price declined 2.9 percent to $340,000.
HAR Report: For a pre-pandemic perspective, June closings came in 3.9 percent ahead of June 2019’s tally of 8,249. The June 2023 median price of $345,000 is 36.4 percent higher than it was in 2019 ($253,000) and today’s average price of $431,092 is 34.1 percent higher than it was then ($321,390). Sales are 2.3 percent ahead of where they were five years ago, in June 2018, when volume totaled 8,385. Back then, the median price was $245,000 and the average price was $315,517.
Single-Family Homes Update-HAR Report
Single-family home sales fell 12.8 percent year-over-year in June with 8,582 units sold across the Greater Houston area compared to 9,845 in 2022. Pricing continues to stabilize after soaring to record highs last spring. The June average price fell 0.5 percent to $431,092 while the median price dropped 2.5 percent to $345,000. February 2023 marked the first pricing declines the Houston housing market had seen in more than two years.
June Monthly Market Comparison-HAR Report
June was the 15th straight month of negative sales as Houston. Year-over-year single-family home sales fell 12.8 percent, but when compared to June 2019, before the pandemic, sales were up 3.9 percent, and compared to June 2018, five years back, they were up 2.3 percent.
In addition to the decline in single-family sales volume, total property sales and total dollar volume also fell below last year’s levels. Total dollar volume was $4.2 billion, down from $4.9 billion a year earlier. Single-family pending sales rose 4.8 percent. Active listings, or the total number of available properties, came in 28.2 percent ahead of the 2022 level.
Months of inventory increased in June, expanding to a 3.1-months supply. That is the greatest months supply since June 2020 when it was 3.0 months. Housing inventory nationally sits at a 3.0-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-months supply has traditionally been considered a “balanced market” in which neither buyer nor seller has an advantage.
