The Houston housing market continues to demonstrate that it is returning to a more normal state. While home sales were down for a 16th straight month, July's rate of decline was the smallest since sales dropped 7.6 percent in June 2022. Year-over-year, single-family home sales fell 8.5 percent with 7,557 units sold compared to 8,256 in July 2022.
Months of supply reach its highest level since May 2020, at 3.2. However, home sales were down 15.3 percent when compared to pre-pandemic July 2019. The only segment to experience a gain was the sub-$100,000 housing segment, which represents just 1.2 percent of all homes on the market; while rentals of single-family homes and townhomes/condominiums continue to be strong.
“Each passing month has moved the Houston housing market closer to what we consider normal, with seasonal influences, but consumers are still understandably taking a cautious approach to the homebuying process, and many are ultimately choosing to rent,” said HAR Chair Cathy Treviño.
The average single-family home price increased just 0.6 percent to $428,140 while the median price dropped 2.3 percent to $340,000. This keeps prices below the record highs of $438,350 (average) in May 2022 and $354,000 (median) in June 2022 as prices continue to stabilize.
July Monthly Market Comparison
Houston sales were negative for 16th straight month in July. While the decline was only 8.5 percent year-over-year, sales were down 15.3 percent compared to pre-pandemic July 2019 and down 5.8 percent compared to July 2018, five years back.
Total property sales and total dollar volume were also below 2022’s levels. Total dollar volume fell to $3.7 billion from $4.0 billion last year. However, some indicators were encouraging, including a 12.1 percent increase in single-family pending sales and a 13.2 percent increase in active listings.
At 3.2 months supply, inventory is the highest it has been since May 2020 when it was 3.3 months. Nationally, housing inventory sits at a 3.1-months supply, according to the National Association of Realtors (NAR). 4.0- to 6.0-months supply has traditionally been considered a “balanced market” in which neither buyer nor seller has the advantage. The actual time it took to sell a home, or Days on Market, increased from 27 to 42 days.
Single-Family Homes Update
7,557 single-family units were sold across the Greater Houston area compared to 8,256 in July 2022. The July average price rose just 0.6 percent to $428,140 while the median price dropped 2.3 percent to $340,000, as pricing continues to stabilize after soaring to record highs last spring.
Compared to pre-pandemic levels, closings were 15.3 percent
below July 2019’s total of 8,921. Today’s median price of $340,000 is 36.0
percent higher than it was in 2019 ($250,000) and the average price of $428,140
is 37.3 percent higher (the July 2019 median was $311,895). Five years ago, in
July 2018, the median price was $244,560 and the average price was $305,925.
Today’s sales are 5.7 percent below where they were back then, when volume
totaled 8,019.
Broken out by housing segment, July sales performed as follows:
- $1 - $99,999: increased 6.5 percent
- $100,000 - $149,999: decreased 7.2 percent
- $150,000 - $249,999: decreased 6.1 percent
- $250,000 - $499,999: decreased 11.8 percent
- $500,000 - $999,999: decreased 8.3 percent
- $1M and above: decreased 2.6 percent
HAR also publishes sales figures for existing single-family homes (as opposed to new construction). Existing home sales were down 13.1 percent from July 2022, totaling 5,860 in July. The median sales price declined 1.1 percent to $336,150 and average price was statistically flat at $425,628.
Townhouse/Condominium Update
Townhouses and condominiums fell 9.8 percent year-over-year
with 590 closed sales versus 654 a year earlier, experiencing their 14th
consecutive monthly decline in July. The
median price dropped 2.2 percent to $220,000 and the average price rose 2.1
percent to $263,876. Inventory grew from a 1.9-months supply to 2.9 months, reaching
its highest level since February 2021.
Townhome and condominium sales were down 14.6 percent compared to pre-pandemic July 2019, when 691 units sold. The average price in July 2019, at $203,142, was 23.0 percent lower and the median price, at $163,000 was 25.9 percent lower.
Houston Real Estate Highlights in July
Single-family home sales were down 8.5 percent year-over-year, the 16th consecutive month of slowing sales volume, however there continued to be signs of overall improvement to the local housing market;
- The 8.5 percent decline is the smallest since the market registered a 7.6 percent drop in June 2022;
- Compared to July 2019, before the pandemic, sales were down 15.3 percent, and compared to July 2018, five years back, they were down 5.8 percent.
- Days on Market (DOM) for single-family homes rose from 27 to 42 days;
- Total property sales fell 8.3 percent with 9,223 units sold;
- Total dollar volume dropped 8.8 percent to $3.7 billion;
- The single-family median price dropped 2.3 percent to $340,000;
- The single-family average price edged up 0.6 percent to $428,140;
- Single-family home months of inventory registered a 3.2-months supply, up from 2.4 months a year earlier – the biggest supply in three years;
- Townhome/condominium sales experienced their 14h straight monthly decline, falling 9.8 percent, with the median price down 2.2 percent to $220,000 and the average price up 2.1 percent to $263,876;
- Compared to pre-pandemic 2019, townhome and condominium sales were down 14.6 percent.