“Houston Housing Highlights: Your Monthly Real Estate Market Snapshot!”

Houston Real Estate Market: An Overview

Houston’s real estate market is somewhat competitive, with homes receiving an average of 2 offers and selling in around 30 days¹. The median sale price of a home in Houston was $325K last month, up 1.4% since last year¹. The median sale price per square foot in Houston is $174, up 3.0% since last year¹.

Market Trends

In the Houston Housing Market for September 2023, home sales took a significant hit, marking the 18th consecutive month of declining sales². This decline can be attributed to the impact of interest rates, which led prospective homebuyers toward the rental market and caused others to postpone their buying plans².

However, the slower sales did result in an expansion of inventory and moderated prices, creating a more favorable environment for buyers once consumer confidence is restored². The 1-year market forecast for Houston as of September 30, 2023, projects a modest increase of 0.3% in home prices².

Key Statistics

The Houston Association of Realtors’ (HAR) September 2023 Market Update reveals that single-family home sales decreased by 10.9 percent year-over-year, with 6,886 units sold compared to 7,728 in September 2022². The months supply of homes climbed to 3.5, the highest level since November 2019 when it was at a 3.6-month supply².

Rental Homes

Rental homes, including single-family homes and townhomes/condominiums, continued to attract strong interest from consumers². As the holidays approach, it’s expected that the real estate market in Houston will remain sluggish². Rental homes are likely to continue drawing interest from consumers as potential buyers remain cautious about mortgage rates².

Single-Family Homes Update

In September, single-family home sales dropped by 10.9 percent year-over-year². The average price inched up by 0.8 percent to $416,664, while the median price decreased by 2.2 percent to $333,000².

Townhouse/Condominium Market

Townhouses and condominiums experienced their 16th straight monthly decline in September, with sales dropping by 14.4 percent year-over-year².

In conclusion, while the Houston real estate market has seen some challenges recently due to interest rates and other factors, there are signs of potential recovery on the horizon. With an increase in inventory and moderated prices, prospective buyers may find more options available to them in the coming months.

If you have any questions about the market feel free to comment or reach out to me.