For a 15th straight month, home sales across Greater Houston were down in June. Signs of improvement have begun to appear, however, as showings and pending home sales are outpacing 2022.
Houston Association of Realtors’ (HAR) released their June 2023 Market Update on July 12, showing single-family home sales down 12.8 percent year-over-year with 8,582 units sold compared to 9,845 in June 2022. Home sales were up 3.9 percent compared to pre-pandemic June 2019, however, with the highest inventory level since June 2020 at 3.1 months.
The luxury market, homes priced at $1M and above, rose nearly six percent in June. This was the first increase in months for this segment. At the opposite end, homes priced below $150,000 also saw a gain, but other segments experienced declines. Single-family and townhome/condominium rentals were also strong. HAR will publish another June 2023 update just for rental homes next Wednesday, July 19.
According to HAR Chair Cathy Treviño, “We are seeing improvement after more than a year of negative home sales due largely to rising interest rates and inflation/recession jitters among consumers. 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.”
for the fifth time since the spring of 2020, June saw a decline in single-family home prices by an average of 0.5 percent at $431,092 and a median of 2.5 percent to $345,000. This kept pricing below the May 2022 record high of $438,350 (average) and June 2022 $354,000 (median).
June Monthly Market Comparison
June was Houston’s 15th straight month of negative sales as year-over-year single-family home sales fell 12.8 percent. For perspective sales were up 3.9 percent over pre-pandemic 2019, and up 2.3 percent compared to five years ago.
Total property sales and total dollar volume also fell below last year’s levels, in addition to the decline in single-family sales volume. Total dollar volume was down from $4.9 billion to $4.2 billion, however, single-family pending sales rose 4.8 percent and active listings, or the total number of available properties, are in 28.2 percent ahead of the 2022 level.
Months of inventory expanded to a 3.1-month supply in June, the greatest months supply since it was 3.0 months in June 2020. Nationally, housing inventory is at a 3.0-months supply, according to the National Association of Realtors (NAR). A “balanced market” in which neither buyer nor seller has an advantage, is traditionally considered to be one with a 4.0- to 6.0-months supply.
Single-Family Homes Update
With 8,582 units sold across the Greater Houston area compared to 9,845 in 2022, single-family home sales fell 12.8 percent year-over-year in June. After soaring to record highs last spring, February 2023 marked the first pricing declines the Houston housing market had seen in more than two years. June’s numbers show pricing continues to stabilize. The average price fell 0.5 percent in June to $431,092, while the median price saw a decline of 2.5 percent to $345,000.
For a pre-pandemic comparison, June closings are up 3.9 percent ahead of June 2019’s tally of 8,249. The June 2023 median price is 36.4 percent higher than it was in 2019 ($253,000) at $345,000. Today’s average price is 34.1 percent higher than 2019’s ($321,390) at $431,092. Sales are 2.3 percent ahead of the June 2018 volume of 8,385. In 2018, the median price was $245,000 and the average price was $315,517.
The actual time it took to sell a home, Days on Market, increased from 28 to 45 days. Months of inventory came in at a 3.1-months supply compared to 1.9 months a year earlier. NAR reports the current national supply stands at 3.0 months.
June sales performed as follows, broken out by housing segment:
- $1 - $99,999: increased 1.1 percent
- $100,000 - $149,999: increased 1.1 percent
- $150,000 - $249,999: decreased 1.1 percent
- $250,000 - $499,999: FLAT
- $500,000 - $999,999: decreased 2.5 percent
- $1M and above: increased 5.9 percent.
HAR also publishes sales figures just for existing
single-family homes, with new construction homes removed. Existing home sales were
down 14.6 percent to 6,536 in June 2023 compared to 2022. The median sales
price declined 2.9 percent to $340,000, while the average price was unchanged
at $434,999.
Townhouse/Condominium Update
Townhouses and condominiums fell 17.5 percent year-over-year with 617 closed sales versus 748 a year earlier, experiencing their 13th consecutive monthly decline. The average price was down 2.7 percent to $252,845 and the median price fell 2.5 percent to $217,000. Inventory increased from a 1.6-months supply to 2.8 months, representing their highest level since March 2021.
Townhome and condominium sales were up 5.1 percent, compared to June 2019’s pre-pandemic market. June 2019, when 587 units sold. The average price back then was 11.3 percent lower, at $224,365, and the median price was 21.0 percent lower, at $171,604.
Houston June 2023 Real Estate Highlights
- Single-family home sales were down 12.8 percent year-over-year, the 15th consecutive month of slowing sales volume, however there were signs of overall improvement to the local housing market;
- Compared to pre-pandemic 2019, single-family home sales were up 3.9 percent and were up 2.3 percent versus the volume five years ago, in June 2018;
- The luxury segment, consisting of homes priced from $1M and above, saw its first gains in months, climbing 5.9 percent year-over-year in June;
- Days on Market (DOM) for single-family homes rose from 28 to 45 days;
- Total property sales fell 13.7 percent with 10,382 units sold;
- Total dollar volume dropped 13.4 percent to $4.2 billion;
- The single-family median price dropped 2.5 percent to $345,000;
- The single-family average price fell 0.5 percent to $431,092;
- Single-family home months of inventory registered a 3.1-months supply, up from 1.9 months a year earlier – the biggest supply in three years;
- Townhome/condominium sales experienced their 13th straight monthly decline, falling 17.5 percent, with the median price down 2.5 percent to $217,000 and the average price down 2.7 percent to $252,845;
- Compared to pre-pandemic 2019, townhome and condominium sales were up 5.1 percent.