The statistics used represent a comparison of the June 2023 housing market to that of June 2022.
Sales across Houston were down overall, marking the 15th month of decline, however signs of improvement have appeared on the horizon. “We are seeing improvement after more than a year of negative home sales due largely to rising interest rates and inflation/recession jitters among consumers,” said Houston Association of REALTORS® Chair Cathy Treviño.
Single Family Homes
According to the most recent HAR statistics, the Houston real estate market is leveling out to more normal operations. Volatility in the national economy and signs of inflation have consistently set back the housing market, but after over a year of negative trends in home sales, Houston is noticing its first improvements in months.
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Although sales of single-family-homes declined 12.8% year-over-year with 8,582 units sold versus 9,845 in June 2022, inventory rose to its highest level since June of 2020 at 3.1 months supply. Homes priced at or above $1M also saw their first gain in months, climbing almost 6%. Homes under $150,000 experienced mixed results with average price declining 0.5% to $431,092 and median price falling 2.5% as well to $345,000. In May and June of last year prices were at a record high with the first declines not coming until February 2023, where they have continued their downward trend through June.
In June, sales of Townhouses and condominiums declined for the 13th consecutive month, falling 17.5% year-over-year with 617 sales compared to 748 sales last year. Average prices fell by 2.7% to $252,845, however they still remain 11.3% higher than pre-pandemic levels. Similarly, median prices dropped 2.5% although they are still 21% higher than they were before the pandemic. Inventory reached its highest level since March 2021 this month at 2.8 months supply, up from 1.6 months and moving closer to a balanced market.
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Broken down by price, June sales performed as follows:
- $1 – $99,999: Increased 1.1%
- $100,000 – $149,999: Increased 1.1%
- $150,000 – $249,999: Decreased 1.1%
- $250,000 – $499,999: No Change
- $500,000 – $999,999: Decreased 2.5%
- $1M and above: Increased 5.9%
Sales by price show some of the first signs that the market is leveling out. The number of sales at each price point fluctuated much less than in past months, with certain income brackets seeing their first increases in sales of the year.
Overall, June still saw a general decrease in sales, down 13.7% from last year. Also down was the total dollar volume traded by 13.4% and sales of single-family-homes by 12.8%. Similar trends were observed in the majority of 2022 as average prices rose and housing inventory remained low, favoring sellers on the market.
Compared to last June, there were a few numbers that experienced positive shifts. Among them, pending sales of single-family-homes were up 4.8%, and total active listings rose by 28.2%. This sharp increase in active listings from last year is reflected in the housing inventory and the time it takes to sell a home, which increased from 28 to 45 days on average. Housing inventory is also sitting at a much higher level than last year at 3.1 months compared to 1.9 in 2022. The market is generally considered balanced at a 4.0 to 6.0 months supply, meaning that the market still lightly favors sellers and is consistent with the national statistic which currently sits at 3.0 months supply.
What Does This Mean For You?
Timing the real estate market can be just as difficult as interpreting the stock market. The best rule of thumb for buyers or sellers is to be one when you need or want to, and the current market is showing advantages for both groups. Most experts agree that when interest rates come down, we will see an uptick in activity and prices. The market remains strong for sellers and much more reasonable for buyers than we have seen in quite some time. There is no reason to hesitate right now for either buyers or sellers. Reach out to us for recommendations that are specific to your neighborhoods of interest!