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HOUSTON HOME SALES SURGE AMID RISING MORTGAGE RATES IN OCTOBER

Home sales see double-digit growth as inventory continues to expand

HOUSTON — (November 13, 2024) — Despite a recent uptick in mortgage rates, the Houston housing market maintained its momentum in October. Both home sales and inventory increased, signaling a healthy and active market as the final quarter of 2024 began.

Single-family home sales across the Greater Houston area climbed 12.8 percent year-over-year with 7,185 units sold compared to 6,372 last October, according to the Houston Association of Realtors’ (HAR) October 2024 Housing Market Update.

The average price of a home rose 5.2 percent to $423,166, while the median price increased 2.7 percent to $334,900.

The high end of the market experienced a surge in sales activity in October. The luxury segment ($1 million+) had the strongest performance with closings 33.8 percent higher than the same time last year. That is followed by the housing segment with homes priced between $500,000 and $999,999, which recorded a 25.9 percent surge in sales compared to last year. The segment with homes priced between $100,000 and $149,999 was the only one that saw a decline in sales, with closings down 7.3 percent compared to last year.

Rentals of single-family homes continued to hold steady in October. HAR will publish its October 2024 Rental Home Update on Wednesday, November 20.

“While mortgage rates have edged up, they remain well below the peak levels reached last year,” said HAR Chair Thomas Mouton with Century 21 Exclusive Properties.“ This more favorable rate environment is helping sustain buyer demand and driving continued activity in the Houston housing market as we enter the final months of 2024.”

October Monthly Market Comparison

October marked the end of a five-month streak of declining total property sales, with sales increasing 10.2 percent compared to the same time last year. Total dollar volume rose 19.5 percent to $3.5 billion. The number of available properties was 23.6 percent above October 2023 levels.

Single-Family Homes Update

In October, single-family home sales posted gains for the second month in a row, climbing 12.8 percent year-over-year. A total of 7,185 units were sold across the Greater Houston area compared to 6,372 last year. The average price rose 5.2 percent to $423,166, and the median price was up 2.7 percent to $334,900. The price per square foot increased to $178 compared to $173 last October.

With 31,094 homes on the market, inventory levels have continued to expand, providing more opportunities for prospective homeowners. The average days on market increased from 48 to 51.

Months of inventory of single-family homes expanded from a 3.5-months supply last October to 4.4 months, which is the highest since September 2012 when there was a 4.7-months supply. Housing inventory nationally stands at a 4.3-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-months supply is generally considered a “balanced market,” in which neither the buyer nor the seller has the upper hand.

Broken out by housing segment, October sales performed as follows:

  • $1 – $99,999: increased 4.5 percent
  • $100,000 – $149,999: decreased 7.3 percent
  • $150,000 – $249,999: increased 16.1 percent
  • $250,000 – $499,999: increased 7.9 percent
  • $500,000 – $999,999: increased 25.9 percent
  • $1M and above: increased 33.8 percent

HAR also breaks out sales figures for existing single-family homes. In October, existing home sales totaled 5,163, which is up 14.7 percent compared to the same time last year. The average price rose 6.0 percent year-over-year to $429,778, and the median sales price increased 4.1 percent to $330,000.

Townhouse/Condominium Update

Townhome and condominium sales were in positive territory for the first time since October 2022. Sales increased 6.5 percent year-over-year to 489 units. The average price rose 2.6 percent to $279,018, and the median price declined 3.2 percent to $232,400.

The inventory of townhomes and condominiums expanded from a 3.5-month supply in October 2023 to 5.9 months, the highest level since July 2012 when it was 6.0 months.

Houston Real Estate Highlights in October

  • Single-family home sales increased 12.8 percent year-over-year; • Days on Market (DOM) for single-family homes went from 48 to 51 days;
  • Total property sales were up 10.2 percent with 8,627 units sold;
  • Total dollar volume rose 19.5 percent to $3.5 billion;
  • The single-family median price was up 2.7 percent to $334,900;
  • The single-family average price climbed 5.2 percent to $423,166;
  • Single-family home months of inventory registered a 4.4-months supply, up from 3.5 months last October.
  • Townhome/condominium sales increased for the first time in two years, with sales up 6.5 percent year-over-year. The median price declined 3.2 percent to $232,400, and the average price rose 2.6 percent to $279,018.

SOURCE: THE HOUSTON ASSOCIATION OF REALTORS (www.har.com/content/mls — November 13, 2024)