Houston housing market shows signs of improvement amid downward trend

Market logged 15th consecutive month of decline

Brandon Sams

Jul 13, 2023, 9:00 AM

June marked the 15th consecutive month that home sales declined in Houston, but the downward trend was slower.

Houston’s housing market is showing signs of stability with positive growth in affordable and luxury home sales and an increase in housing supply, according to a HAR report.

Home sales were down an estimated 14 percent year-over-year, with 10,400 sold in June, compared to 12,000 the year prior.

Looking at just single-family home sales, there was a 13 percent difference between June 2022 and June 2023. However, when compared to the pre-pandemic June 2019, there was a four percent increase.

Total dollar volume also fell, logging $4.2 billion in June 2023 compared to nearly $5 billion in June 2022.

Homes priced over $1 million experienced their first gain in months, increasing 6 percent. On the opposite end of the spectrum, homes priced below $150,000 also showed positive growth with a 1 percent increase.

While demand for high-end and low-end homes grows, the middle continues to lag. All other price points saw declines except homes priced between $250,000 and $500,000, which remained flat. Median home prices also fell last month dipping to $345,000, a 2.5 percent decline.

“While the Houston real estate market is finally operating at a more normal pace, we need to understand that any volatility in the national economy, including more signs of inflation, could set us back again,” HAR chairwoman Cathy Trevino said.

Inventory increased to a three-month supply in June, up from less than two months this time last year. It represents the highest inventory level since June 2020. The national average also hovers around a three-month supply, according to the National Association of Realtors. A lower number indicates buyers are dominating the market, while a higher supply indicates there are more sellers. Traditionally, a balanced market is considered to have a supply ranging from four months to six months, where neither buyers nor sellers have a distinct advantage.

The Bayou City saw a similar trend in May, when sales experienced their smallest decline in nearly a year, indicating potential stability in the housing slowdown.

Texas