Houston housing market Comparison

2023 Annual Market Comparison-HAR Report

Rising mortgage rates were the primary deterrent to homebuying throughout 2023, with some consumers scrapping plans to purchase a home and many others opting to rent instead. Houston real estate kicked off the year with double-digit declines in sales volume that began to ease by the spring. Slower sales combined with a steady influx of new listings enabled inventory to grow and eventually match healthier 2019 and 2020 levels. By October, as the Fed continued its efforts to stave off inflation, mortgage rates climbed to levels not seen in 20 years when they exceeded 8 percent. Despite that, and just in time for the holidays, home sales registered a 4.7 percent increase in November – the first increase the market had seen in 19 months, but not enough to prevent 2023 from becoming the second consecutive down year. 

At the outset of 2023, inventory was at a 2.6-months supply. In October and November, it grew to a 3.5-months supply, the greatest level since November 2019 when the market had a 3.6-months supply. In December, inventory registered a 3.3-months supply. A 4.0- to 6.0-months supply has traditionally been considered a “balanced market” in which neither buyer nor seller has an advantage.

June scored the year’s greatest sales volume with 8,723 single-family units sold during the month. By the time the books were closed on December transactions, 83,854 single-family homes had sold across greater Houston in 2023. That is down 12.0 percent from the 95,302 homes sold in 2022. 

Houston housing market

HAR Report: For December, single-family home sales fell 6.2 percent year-over-year. That comes on the heels of November’s 4.7 percent sales increase that marked the first upward sales move in 19 months. Most segments of the housing market experienced declines, however the heaviest volume segment – consisting of homes between $250,000 and $500,000 – was unchanged compared to December 2022. Homes priced from $1M and above declined 2.1 percent. 

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, unchanged from a year earlier. The average price of $407,817 was also statistically flat.

Houston housing market

HOUSTON — (January 10, 2024)/HAR Report — For the second year in a row, economic forces affecting the entire country caused its share of disruption to the Houston housing market. While 2023 saw significant growth in housing inventory and moderation in pricing, it was ultimately mortgage interest rates, which leapt to 20-year highs, that prompted many would-be buyers to scrap purchasing plans or pivot to rental housing in 2023. As 2024 gets underway, Houston’s residential housing landscape is considered to be on solid footing if you factor out the uncertainty of what the Federal Reserve may do with interest rates and lingering consumer jitters over inflation.

A decline in single-family home sales and total property sales made 2023 the second consecutive negative year for Houston housing. According to HAR’s December/Full-Year 2023 Housing Market Update, single-family home sales fell 12.0 percent to 83,854. Sales of all property types totaled 102,367, down 13.1 percent from 2022. Total dollar volume dropped 12.6 percent to $40 billion versus $45.6 billion in 2022. 

“It is disappointing to have a down year for home sales, but the economic forces affecting Houston affected housing markets across the U.S., so this was not a uniquely Houston situation,” said HAR Chair Thomas Mouton with Century 21 Exclusive. “We believe that home sales will pick up once consumer confidence is restored, and that depends on what the Federal Reserve does with interest rates and evidence that inflation is no longer a threat. The expanded housing inventory and moderation in pricing we saw throughout 2023 have created a positive buying landscape for 2024.”

Houston housing market

Houston Real Estate Highlights in November-HAR Report

• Single-family home sales rose 4.9 percent year-over-year, the first increase in 19 months;

• Compared to November 2019, before the pandemic, sales were down 3.2 percent, and compared to November 2018, five years back, they were statistically flat;

• Days on Market (DOM) for single-family homes went from 48 to 47 days;

• Total property sales rose 3.7 percent with 7,472 units sold;

• Total dollar volume was up 7.5 percent to $2.9 billion;

• The single-family median price fell 1.2 percent to $326,000;

• The single-family average price rose 1.0 percent to $404,597; 

• Single-family home months of inventory registered a 3.5-months supply, up from 2.8 months a year earlier – the highest level since November 2019;

• Townhome/condominium sales experienced their 18th straight monthly decline, falling 3.0 percent, with the median price up 11.4 percent to $245,000 and the average price up 7.3 percent to $272,382;

• Compared to pre-pandemic 2019, townhome and condominium sales were down 9.6 percent.

Townhouse/condominium for sale/rent in Houston

Townhouse/Condominium Update-HAR Report

November did not bring a rebound to the townhouse and condominium market, which experienced its 18th consecutive monthly decline. Sales volume fell 3.0 percent year-over-year with 425 closed sales versus 438 a year earlier. However, that is the smallest rate of decline since the slump began in June 2022, which might suggest that a rebound is in the offing.

Houston housing market

HAR Report: Days on Market, or the actual time it took to sell a home, eased slightly from 48 to 47 days. Months of inventory registered a 3.5-months supply for the second consecutive month and compares to 2.8 months a year earlier. That is the greatest months supply in four years. The current national supply stands at 3.6 months, as reported by NAR.

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

• $1 - $99,999: decreased 19.4 percent

• $100,000 - $149,999: decreased 9.4 percent

• $150,000 - $249,999: increased 3.6 percent

• $250,000 - $499,999: increased 8.0 percent

• $500,000 - $999,999: increased 4.1 percent

• $1M and above: increased 4.1 percent

HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 3,958 in November, down 4.4 percent from the same month last year. The average price rose 3.7 percent to $409,934 and the median sales price rose 3.2 percent to $320,000.

Houston single family house for sale/rent

Single-Family Homes Update-HAR Report

In November, single-family home sales experienced the first increase in 19 months, climbing 4.9 percent year-over-year with a total of 6,154 units sold across the Greater Houston area versus 5,864 in 2022. Pricing continues to moderate after spiking in the spring of 2022. The average price rose 1.0 percent to $404,597 while the median price fell 1.2 percent to $326,000. 

Houston housing market

November Monthly Market Comparison-HAR Report

November marked the first time in 19 months that single-family homes sales were in positive territory with sales rising 4.9 percent year-over-year. When compared to pre-pandemic November 2019, sales were down 3.2 percent and when stacked up against the sales volume in November 2018, five years ago, sales were statistically flat. 

In addition to the increase in single-family sales volume, total property sales rose 3.7 percent and total dollar volume climbed 7.5 percent from $2.7 billion to $2.9 billion. Single-family pending sales rose 11.9 percent. Active listings, or the total number of available properties, were 13.5 percent ahead of the 2022 level.

Months of inventory expanded from a 2.8-months supply last November to 3.5 months, matching its October 2023 level. It is the greatest supply of homes since November 2019. Housing inventory nationally is at a 3.6-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-month supply is generally considered a “balanced market” in which neither buyer nor seller has an advantage.

Houston housing market

HOUSTON — (December 13, 2023) /HAR Report— Just in time for the holidays, the Houston real estate market received a gift in November in the form of positive sales for the first time in 19 months. There are even more healthy indicators layered throughout the latest housing market report as 2023 draws to a close.

According to the Houston Association of Realtors’ (HAR) November 2023 Market Update, single-family home sales across Greater Houston rose 4.9 percent, the first increase since March 2022. The Houston Multiple Listing Service (MLS) recorded sales of 6,154 units compared to 5,864 in November 2022. Months supply of homes climbed from 2.8 to 3.5. Compared to pre-pandemic November 2019, when volume totaled 6,359, home sales were down 3.2 percent. 

Only homes priced below $150,000 saw declines during the month. That segment comprises just 3.5 percent of the overall market. The best performing segment consisted of homes priced between $250,000 and $500,000, which rose 8.0 percent year-over-year. That segment is the largest, comprising 59.8 percent of the market. Rentals of single-family homes and townhomes/condominiums registered another strong month. HAR will publish its November 2023 Rental Home Update next Wednesday, December 20. 

“I couldn’t think of a better way to wrap up 2023 than to see positive sales trends after nearly two years of negative trending,” said HAR Chair Cathy Treviño with LPT, Realty. “Home sales hinge heavily on interest rates, so hopefully consumer confidence will be restored as we begin the new year, especially since inventory has steadily improved and prices have moderated, creating more favorable conditions for buyers.”

The average price of a single-family home throughout Greater Houston edged up 1.0 percent to $404,597 while the median price notched downward 1.2 percent to $326,000. Those figures are well below the record highs of $438,350 (average) in May 2022 and $354,000 (median) in June 2022.

Houston housing market

Houston Real Estate Highlights in October-HAR Report

• Single-family home sales fell 3.4 percent year-over-year, the smallest one-month sales drop of 2023 and the 19th consecutive month of declines;

• Compared to October 2019, before the pandemic, sales were down 11.3 percent, and compared to October 2018, five years back, they were down 4.6 percent;

• Days on Market (DOM) for single-family homes rose from 43 to 47 days;

• Total property sales fell 4.3 percent with 7,825 units sold;

• Total dollar volume dropped 2.6 percent to $2.98 billion;

• The single-family median price fell a fractional 0.9 percent to $327,000;

• The single-family average price rose a fractional 0.4 percent to $403,556; 

• Single-family home months of inventory registered a 3.6-months supply, up from 2.8 months a year earlier – the highest level since November 2019 when it also was 3.6 months;

• Townhome/condominium sales experienced their 17th straight monthly decline, falling 16.4 percent, with the median price up 6.6 percent to $239,900 and the average price up 1.2 percent to $272,597;

• Compared to pre-pandemic 2019, townhome and condominium sales were down 10.5 percent.