(HAR Newsroom, October 9, 2024) — The Greater Houston housing market showed signs of stability in September after recent market fluctuations. Home sales rebounded, prices held steady and inventory remained sufficient to meet buyer demand. These positive indicators point to a more balanced market.
According to the Houston Association of Realtors’ (HAR) September 2024 Housing Market Update, single-family home sales across the Greater Houston area rose 1.7 percent year-over-year with 6,973 units sold compared to 6,858 last September. Inventory expanded from a 3.4-months supply to 4.4 months over the last 12 months, remaining unchanged from the previous month and the highest since September 2012.
Homes prices have shown signs of stabilization as well. The average price remained relatively flat at $415,435, while the median price edged up by 1.1 percent to $335,000.
The housing segment with homes priced between $250,000 and $499,999, which represented 59.7 percent of all home sales in September, had the strongest performance, with sales 4.2 percent above where they were during the same time last year. That was followed by the segment that consisted of homes priced below $100,000 which saw sales increase 3.5 percent, and the luxury end of the market ($1 million+) saw a 2.0 percent increase in home sales. All other housing segments experienced a decline in sales in September.
“The Houston housing market is demonstrating a healthy balance,” said HAR Chair Thomas Mouton. “The rise in sales, expansion of inventory and stable prices indicate a market that is adapting to changing economic conditions. The positive performance in the $250,000 to $500,000 price range and steady inventory levels further support a sustainable market outlook.”
September Monthly Market Comparison
September marked the fifth consecutive month of year-over-year declines in total property sales. Sales were down 3.3 percent compared to the same time last year. Total dollar volume was statistically unchanged at $3.3 billion. The number of available properties were 25.0 percent above where they were last September.
Single-Family Homes Update
Single-family home sales rebounded in September, increasing 1.7 percent year-over-year with a total of 6,973 units sold across the Greater Houston area compared to 6,858 last year. The average price held steady at $415,435 while the median price increased slightly to $335,000. The price per square foot increased from $177 last year to $178.
Active listings climbed by 28.1 percent year-over-year, with 30,617 single-family homes available for sale in September. The average days on market increased from 45 to 51, reflecting a slower pace of sales.
Months of inventory of single-family homes expanded from a 3.4-months supply last September to 4.4 months, which is the highest since September 2012 when there was a 4.7-months supply. Housing inventory nationally stands at a 4.2-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-months supply is generally considered a “balanced market” in which neither buyer nor seller has an advantage.
Broken out by housing segment, September sales performed as follows:
- $1 - $99,999: increased 3.5 percent
- $100,000 - $149,999: decreased 23.4 percent
- $150,000 - $249,999: decreased 0.3 percent
- $250,000 - $499,999: increased 4.2 percent
- $500,000 - $999,999: decreased 3.6 percent
- $1M and above: increased 2.0 percent
HAR also breaks out sales figures for existing single-family homes. In September, existing home sales totaled 4,873, which is down 0.7 percent compared to the same time last year. The average price rose 3.0 percent year-over-year to $429,787, and the median sales price increased 3.1 percent to $335,000.
Townhouse/Condominium Update
Townhome and condominium sales continued to decline in September, down 23.0 percent year-over-year to 398 units. The average price rose 10.9 percent to $290,048, and the median price was up 7.1 percent to $240,990.
The inventory of townhomes and condominiums expanded from a 3.4-month supply in September 2023 to 5.8 months, the highest level since July 2012 when it was 6.0 months.
Houston Real Estate Highlights in September
- Single-family home sales increased 1.7 percent year-over-year;
- Days on Market (DOM) for single-family homes went from 45 to 51 days;
- Total property sales were down 3.3 percent with 8,228 units sold;
- Total dollar volume was statistically flat at $3.3 billion;
- The single-family median price was up 1.1 percent to $335,000;
- The single-family average price edged up by 0.3 percent to $415,435;
- Single-family home months of inventory registered a 4.4-months supply, up from 3.4 months last September.
- Townhome/condominium sales continued to decline, falling 23.0 percent, with the median price up 7.1 percent to $240,990, and the average price rose 10.9 percent to $290,048.