Houston Home Sales Gain Momentum in July

The Greater Houston real estate market faced notable challenges in July 2024 due to Hurricane Beryl, which caused significant disruptions, including prolonged power outages affecting over 2.2 million households. Despite these hurdles, the Houston real estate market displayed resilience, particularly in the high-end segments, leading to overall growth in single-family home sales.

Single-Family Homes: A Resilient Market

In July 2024, single-family home sales across the Greater Houston area increased by 1.8% year-over-year. The Houston Multiple Listing Service (MLS) recorded 7,635 units sold compared to 7,501 units last year. This uptick, despite the storm's impact, reflects a robust underlying demand in the market.

The average price of single-family homes reached a historic high of $445,440, surpassing the previous record of $441,641 set earlier this year in May. Additionally, the median price climbed to $350,000, a 2.9% increase from July 2023. These figures indicate a continued upward trend in home values, driven by the scarcity of available properties and high demand.

Luxury Market Surge

The luxury home market, defined as properties priced at $1 million and above, saw a remarkable 14.2% increase in sales. This segment, which comprises 4.5% of all homes on the market, outpaced the growth of other price segments. Homes priced between $500,000 and $1 million also experienced a significant increase, rising 9.1% year-over-year.

In contrast, the market for homes priced between $250,000 and $500,000, which represents more than half of all available properties, remained relatively stable with negligible change. However, lower-priced segments faced a decline, with sales decreasing across various price ranges, including:

• $1 - $99,999: Down 7.3%
• $100,000 - $149,999: Down 17.9%
• $150,000 - $249,999: Down 3.7%

Market Conditions and Inventory

The inventory of single-family homes saw a significant increase, with a 34.2% rise in active listings from July 2023. The number of homes available for sale reached 29,642, pushing the months of inventory up to 4.3 months from 3.1 months last year. This expansion indicates a shift towards a more balanced market, aligning closely with the national average of 4.1 months.

Days on Market for single-family homes increased slightly from 42 to 44 days, reflecting a marginally slower pace in home sales.

Townhome and Condominium Market

The townhouse and condominium market continued to face challenges, with sales dropping by 19.5% year-over-year to 471 units. The average price for townhomes and condos declined by 0.8% to $261,123, while the median price edged up 0.7% to $221,500. The inventory for these properties expanded to a 5.2-month supply, the highest level since September 2012.

Overall Market Performance

• Total Property Sales: Decreased by 2.1% year-over-year to 8,969 units.
• Total Dollar Volume: Increased by 4.4% to $3.8 billion.
• Single-Family Median Price: Rose by 2.9% to $350,000.
• Single-Family Average Price: Increased by 4.7% to $445,440.
• Months of Inventory: Expanded to 4.3 months.

Looking Ahead

HAR Chair Thomas Mouton remains optimistic despite the disruptions caused by Hurricane Beryl. "Despite the temporary setbacks, we expect to see transactions catch back up next month," he noted. The recent decline in mortgage rates is expected to further bolster market activity, potentially reigniting interest among hesitant buyers.