August marks the 17th consecutive month of sluggish performance in Houston’s residential market.
While that may sound concerning, the market continues to show resilience as it navigates through this period of declining sales.
The market is gradually inching toward pre-pandemic norms, Houston Association of Realtors data suggests
Last month, single-family home sales declined by 4 percent year-over-year, with nearly 8,000 properties sold, compared to 8,300 in August 2022. However, this decline represents the smallest drop since May 2022, when sales dipped by less than 1 percent.
The luxury market was the sole sector that bucked the trend of decreasing sales. Purchases of homes priced $1 million and above saw a 21 percent gain in August year-over-year, the largest increase the luxury market has seen since last year.
Houston’s luxury market has remained inoculated against the gradual decline in sales of single-family homes, and prices are increasing, as lending and affordability are of less concern to high-income buyers.
The market’s inventory also expanded, hitting a three-month supply of homes, reaching the highest peak since May 2020, and aligning with the national trend reported by the National Association of Realtors. With the increase in home supply, the market is inching closer to a balanced state where neither buyers or sellers hold significant advantage.
One of the market’s most reassuring aspects for would-be homebuyers is the stabilization in single-family home prices.
The average price increased by a modest 2.5 percent to $420,000, while the median price remained statistically flat at $339,000. These figures are notably lower than the record highs observed in May and June of 2022, the high point of the post-pandemic housing market.
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