Houston Housing Market Insight: September 2024

Following a tough August, the Greater Houston housing market has regained momentum, showcasing a recovery in sales and stable pricing in September. The latest Houston Association of Realtors (HAR) report reveals a promising shift towards a more balanced market, highlighting key trends that could influence buyers and sellers alike.

Sales Rebound

In September, single-family home sales experienced a 1.7% increase year-over-year, totaling 6,973 units sold compared to 6,858 in September 2023. This uptick is particularly notable in the mid-range market, where homes priced between $250,000 and $499,999 made up 59.7% of sales, seeing a 4.2% rise. The luxury segment ($1 million+) also posted gains, with sales increasing by 2.0%.

Despite these positive developments, total property sales across all categories declined by 3.3%, with the overall dollar volume stable at $3.3 billion. This juxtaposition highlights a complex market where some segments are thriving while others lag behind.

Price Stability

Home prices have shown signs of stabilization in September. The average price for single-family homes remained steady at $415,435, while the median price rose by 1.1% to $335,000. The slight increase in the price per square foot from $177 to $178 further indicates a stabilizing market, offering reassurance to potential buyers who may have been hesitant amid previous fluctuations.

Growing Inventory

One of the most significant changes in the market is the increase in inventory, which expanded to a 4.4-month supply of single-family homes— the highest level since September 2012. With 30,617 single-family homes available, active listings have surged by 28.1% compared to last year. A balanced market is generally defined by a 4.0 to 6.0-month supply, suggesting that buyers have more options and increased negotiating power.

Moreover, the average days on market for single-family homes has increased from 45 to 51 days, reflecting a slightly slower pace of sales and a more deliberate decision-making process for buyers.

Townhome and Condominium Trends

On the other hand, the townhome and condominium market faced challenges, with sales plummeting 23.0% year-over-year to 398 units. Despite the decline in sales volume, prices in this segment have risen significantly, with the average price jumping 10.9% to $290,048 and the median price increasing 7.1% to $240,990. The inventory for townhomes and condos now stands at a 5.8-month supply, the highest since July 2012.

Looking Ahead

As the Greater Houston housing market continues to evolve, there are several trends to watch. The increase in inventory suggests that buyers now have more choices, which could lead to greater negotiation power. Additionally, the stabilization in prices may encourage hesitant buyers to enter the market, knowing that significant fluctuations are less likely.

With the rise in sales for mid-range and luxury homes, it will be interesting to see if this trend sustains in the coming months, especially as economic conditions change. The upcoming HAR Rental Home Update on October 16 will also be pivotal in understanding how the rental market might be influenced by these broader housing trends.

For prospective buyers and sellers, staying informed and adaptable will be key in navigating this balanced market, where opportunities are ripe for those ready to make their move.