(HAR Newsroom, December 11, 2024) — While the temperatures cooled in November, the Houston housing market remained temperate, with homebuyers seemingly undeterred by rising mortgage rates. Home sales surpassed 2023 levels for the third consecutive month, while inventory continued to expand.
According to the Houston Association of Realtors’ (HAR) November 2024 Housing Market Update, single-family home sales across the Greater Houston area increased 6.0 percent, with 6,559 units sold compared to 6,187 in November 2023. The increase in home sales is likely due to lower mortgage rates in September and early October, which attracted more buyers to the market.
Only homes priced between $100,000 and $149,999 saw declines during the month, however that segment comprises just 2.1 percent of the overall market. The high end of the market saw the strongest performance in November. Sales in the luxury segment ($1 million+) were 21.4 percent higher than the same time last year. That is followed by the housing segment with homes priced below $99,999, which made up 1.3 percent of all home sales in November. It recorded a 21.3 percent rise in sales compared to last year.
Rentals of single-family homes experienced sustained demand in November. HAR will publish its November 2024 Rental Home Update on Wednesday, December 18.
“Houston's housing market continues to demonstrate its strength and stability, even with rising mortgage rates,” said HAR Chair Thomas Mouton with Century 21 Exclusive Properties. “This positive momentum bodes well for both buyers and sellers as we enter the home stretch of 2024. While increased inventory is attracting more people to the market, we know that many consumers remain cautious due to concerns about interest rates and inflation.”
November Monthly Market Comparison
November marked the second consecutive month where total property sales were in positive territory with sales increasing 3.3 percent year-over-year. Total dollar volume rose 11.1 percent to $3.1 billion. Active listings, or the total number of available properties, were 22.1 percent ahead of the 2023 level.
Single-Family Homes Update
There were positive indicators across the board in November. Single-family home sales posted gains for the third month in a row, growing 6.0 percent from last November. A total of 6,559 units were sold across the Greater Houston area compared to 6,187 last year. The average price rose 4.1 percent to $418,903, and the median price edged up by 1.5 percent to $329,990. The price per square foot increased to $175 from $172 in November 2023.
Days on Market, or the actual time it took to sell a home, increased from 48 to 52. Months of inventory has held steady at a 4.4-months supply since August. Last November, there was a 3.5-months supply. The current national supply stands at 4.2 months, as reported by the National Association of Realtors (NAR).
Broken out by housing segment, November sales performed as follows:
- $1 - $99,999: increased 21.3 percent
- $100,000 - $149,999: decreased 8.3 percent
- $150,000 - $249,999: increased 10.1 percent
- $250,000 - $499,999: increased 3.3 percent
- $500,000 - $999,999: increased 13.3 percent
- $1M and above: increased 21.4 percent
HAR also breaks out sales figures for existing single-family homes. In November, existing home sales totaled 4,281, up 10.6 percent compared to the same time last year. The average price rose 7.4 percent to $439,206, and the median sales price increased 2.4 percent to $327,680.
Townhouse/Condominium Update
After a month in positive territory, townhome and condominium dipped in November. Sales were down 12.0 percent year-over-year to 373 units. The average price declined 10.0 percent to $242,617, and the median price fell 6.6 percent to $224,000.
The inventory of townhomes and condominiums expanded from a 3.7-months supply last November to 5.9 months, which is the highest level since July 2012 when it was 6.0 months.
Houston Real Estate Highlights in November
- Single-family home sales increased 6.0 percent year-over-year;
- Days on Market (DOM) for single-family homes went from 48 to 52 days;
- Total property sales were up 3.3 percent with 7,750 units sold;
- Total dollar volume rose 11.1 percent to $3.1 billion;
- The single-family median price was up 1.5 percent to $329,900;
- The single-family average price climbed 4.1 percent to $418,903;
- Single-family home months of inventory registered a 4.4-months supply, up from 3.5 months last November.
- Townhome/condominium sales declined 12.0 percent year-over-year. The median price declined 6.6 percent to $224,000, and the average price was down 10.0 percent to $242,617.
- Single-family home months of inventory registered a 4.4-months supply, up from 3.5 months last October.
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Townhome/condominium sales increased for the first time in two years, with
sales up 6.5 percent year-over-year. The median price declined 3.2 percent to
$232,400, and the average price rose 2.6 percent to $279,018.
- 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.