Houston housing market

HAR Report: “January was an unexpectedly positive month for Houston housing, but we don’t want to get ahead of ourselves because we know that consumers are still keeping a wary eye out for interest rates and inflation,” said HAR Chair Thomas Mouton with Century 21 Exclusive. “Rental housing is still proving to be a viable option for hesitant buyers as it also had strong activity in January.”

The average price of a single-family home throughout Greater Houston rose 2.7 percent to $391,080 and the median price increased 2.1 percent to $320,500. That marks the first time that the average price has been below $400,000 since February 2023.

Houston housing market

HOUSTON HAR Report— (February 14, 2024) — Fresh on the heels of the holidays and despite lingering consumer concerns about elevated mortgage interest rates, the Houston real estate market achieved an unexpectedly strong start to 2024. 

According to the Houston Association of Realtors’ (HAR) January 2024 Market Update, single-family home sales across Greater Houston rose 9.0 percent. That is only the second increase in two years. The first was in November 2023 when sales were up 5.4 percent. The Houston Multiple Listing Service (MLS) recorded sales of 5,009 units compared to 4,595 in January 2023. Months supply of homes edged up from 2.6 to 3.3. 

Only homes priced below $150,000 saw declines during the month, however that segment comprises just 1.5 percent of the overall market. The best performing segment consisted of homes priced between $500,000 and $1 million which jumped 16.7 percent year-over-year. That was followed by the luxury segment ($1 million +) which rose 15.4 percent. Next was the $250,000 to $500,000 segment which saw a 13.0 percent gain. Activity among lower- to mid-range homes  -- those priced between $100,000 and $250,000 – was flat. Rentals of single-family homes and townhomes/condominiums registered another strong month. HAR will publish its January 2024 Rental Home Update next Wednesday, February 21. 

Houston housing market

Houston Real Estate Highlights for December and Full-Year 2023/HAR Report

• 2023 marked the second consecutive year of declining home sales with 83,854 single-family homes sold versus 95,302 in 2022 – a decline of 12.0 percent; . 

• Total dollar volume for full-year 2023 fell 12.6 percent to $40B;

• December single-family home sales fell 6.2 percent year-over-year with 6,103 units sold;

• Total December property sales declined 4.9 percent to 7,395 units;

• Total dollar volume for December fell 3.7 percent to $2.9B;

• At $330,000, the single-family home median price was unchanged;

• The single-family home average price was also unchanged at $407,817;

• Single-family homes months of inventory expanded to a 3.3-months supply;

• The townhome/condominium market experienced declining sales throughout 2023, and in December, volume fell 7.0 percent with the average price up 6.7 percent to $258,137 and the median price down 9.3 percent to $235,000;

• Townhome/condominium inventory grew from a 2.0-months supply to 3.5 months.

Townhouse/condominium for sale/rent in Houston

Townhouse/Condominium Update-HAR Report

Townhome and condominium sales were in decline for the entirety of 2023, although the rate of decline slowed during the final two months of the year. December volume fell 7.0 percent with 411 units sold versus 442 a year earlier. The average price rose 6.7 percent in December to $258,137 and the median price rose 9.3 percent to $235,000. Inventory improved from a 2.0-months supply to 3.5 months.

Houston housing market

HAR Report: Broken out by housing segment, December sales performed as follows:

• $1 - $99,999: increased 23.3 percent

• $100,000 - $149,999: decreased 20.5 percent

• $150,000 - $249,999: decreased 10.4 percent

• $250,000 - $499,999: unchanged

• $500,000 - $999,999: decreased 10.3 percent

• $1M and above: decreased 2.1 percent

HAR also breaks out the sales figures for existing single-family homes. Existing home sales totaled 3,928 in December. That is down 6.6 percent versus the same month last year. The average sales price was unchanged at $399,841 while the median sales price edged up 1.6 percent to $315,000.

Single family home for sale/rent in Houston

December Single-Family Homes Update-HAR Report

Single-family home sales totaled 6,103, down 6.2 percent from December 2022. That followed November’s surprising 4.7 percent sales volume increase – the first upward sales trend in 19 months. The median price was flat at $330,000. The average price was statistically flat at  $407,817. Those figures culminate a year of gradual but consistent moderation in home prices. Days on Market (DOM), or the number of days it took the average home to sell, went from 57 to 56 days.

Houston housing market Comparison

December Monthly Market Comparison-HAR Report

The Houston housing market produced mixed results in December. Single-family home sales, total property sales and total dollar volume fell compared to December 2022 while pricing was statistically flat. Month-end pending sales for single-family homes totaled 5,723, up 14.5 percent from a year earlier. Total active listings, or the total number of available properties, rose 13.9 percent to 38,028. 

Single-family homes inventory grew from a 2.6-months supply to 3.3 months. For perspective, housing inventory across the U.S. currently stands at a 3.5-months supply, according to the latest National Association of Realtors (NAR) report.

Houston housing market

HAR Report: On a year-to-date basis, the average single-family home price was statistically flat at $412,161 while the median price fell 2.5 percent to $330,000. Total dollar volume for full-year 2023 fell 12.6 percent to about $40B.

Houston’s lease market had a strong 2023 as prospective buyers secured homes to rent until they are prepared to resume the buying process – most likely once they observe stability or declines in mortgage interest rates and are convinced that inflation is no longer a concern. HAR will report on rental trends in the December 2023 Rental Market Update, to be released next Wednesday, January 17. 

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.