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Welcome to May's market update. If your on the fence about buying or selling this insight may be the help you need to make that final decision.
**HOUSTON — (May 8, 2024)** — The Houston housing market experienced positive changes in April due to warmer weather and shifting market conditions. Although the spring homebuying season had a slow start, home sales recovered and inventory increased to levels not seen since before the pandemic, creating opportunities for both buyers and sellers.
The Houston Association of Realtors' (HAR) April 2024 Market Update reported a 9.2 percent increase in single-family home sales across the Greater Houston area. The Houston Multiple Listing Service (MLS) recorded 7,926 units sold, compared to 7,256 in April 2023. The months supply of homes increased from 2.6 to 3.7, the highest since October 2019 when it was 3.8 months.
All housing segments experienced increased sales in April, with the luxury segment ($1 million+), which accounts for only 4.8 percent of the market, seeing the most significant growth at 33.8 percent. HAR will release its April 2024 Rental Home Update on May 15.
HAR Chair Thomas Mouton from Century 21 Exclusive Properties noted that the spring homebuying season is blooming later than usual this year. Despite higher interest rates, the April home sales rebound indicates that buyers are adjusting to the new market conditions, and sellers are finding opportunities as inventory levels increase.
The average price of a single-family home in Greater Houston increased by 4.6 percent to $437,198, the second-highest price after the record of $438,350 set in May 2022. The median price rose by 3.0 percent to $340,000.
**Monthly Market Comparison**
After a slow beginning to the spring homebuying season, single-family home sales in April increased by 9.2 percent compared to the same month last year. The number of homes available for sale also reached the highest levels since 2019, before the pandemic.
Not only did single-family home sales increase, but total property sales also went up by 8.7 percent. The total dollar amount of all sales increased by 13.8 percent, from $3.5 billion to $4 billion. The number of pending sales for single-family homes, which are sales that are under contract but not yet completed, increased by 10.3 percent. The number of active listings, which includes all properties currently available for sale, was 32.3 percent higher than in April 2023.
The months of inventory, which is the number of months it would take to sell all the homes currently available at the current sales pace, increased from 2.6 months last April to 3.7 months. This is the highest it has been since October 2019, when it was 3.8 months. Nationally, housing inventory is at a 3.2-months supply, according to the latest report from the National Association of Realtors (NAR). A balanced market, where neither the buyer nor the seller has an advantage, typically has a 4.0 to 6.0-months supply of homes.
**Single-Family Homes Update**
In April, single-family home sales increased for only the fourth time in the last 12 months, rising by 9.2 percent compared to the same month last year. A total of 7,926 homes were sold in the Greater Houston area, compared to 7,256 in April of the previous year. The average price of a home increased by 4.6 percent to $437,198, while the median price increased by 3.0 percent to $340,000. The time it took to sell a home, known as Days on Market, decreased from 56 days to 49 days. The months of inventory, which represents the number of months it would take to sell all the homes currently on the market, increased to 3.7 months compared to 2.6 months a year earlier. Nationally, the current supply of homes is 3.2 months, according to the National Association of Realtors (NAR).
When broken down by price range, April sales performed as follows:
* Homes priced $1 - $99,999: sales increased by 24.3 percent
* Homes priced $100,000 - $149,999: sales increased by 20.9 percent
* Homes priced $150,000 - $249,999: sales increased by 2.2 percent
* Homes priced $250,000 - $499,999: sales increased by 6.1 percent
* Homes priced $500,000 - $999,999: sales increased by 14.0 percent
* Homes priced $1 million and above: sales increased by 33.8 percent
The Houston Association of Realtors (HAR) also provides sales figures for existing single-family homes. In April, 5,753 existing homes were sold, which is a 9.7 percent increase from the same month last year. The average price of an existing home rose by 6.8 percent to $442,773, and the median sales price increased by 6.1 percent to $339,500.
**Townhouse/Condominium Update**
In April, the number of townhomes and condominiums available for sale reached its highest level in more than four years. The months of inventory increased from 2.3 months to 4.5 months, which is the highest it has been since October 2019. However, sales of townhomes and condominiums slightly decreased in April. Sales dropped by 1.3 percent compared to the same month last year, with 537 units sold compared to 544 a year earlier. The average price of townhomes and condominiums decreased by 0.5 percent to $278,048, while the median price decreased by 1.8 percent to $230,000.
**Houston Real Estate Highlights in April**
* Sales of single-family homes increased by 9.2 percent compared to the same month last year.
* The time it took to sell a single-family home, known as Days on Market (DOM), decreased from 56 to 49 days.
* Total property sales, including all types of properties, increased by 8.7 percent with 9,611 units sold.
* The total dollar amount of all sales increased by 13.8 percent to $4 billion.
* The median price of a single-family home increased by 3.0 percent to $340,000.
* The average price of a single-family home increased by 4.6 percent to $437,198.
* The months of inventory for single-family homes increased to a 3.7-months supply, up from 2.6 months a year earlier.
* Sales of townhomes and condominiums continued to decrease, falling by 1.3 percent. The median price decreased by 1.8 percent to $230,000, and the average price decreased by 0.5 percent to $278,048.
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