The Houston housing market, despite facing challenges from the pandemic and rising interest rates, is showing signs of returning to a more normalized state. While home sales in Greater Houston have been on a decline for 16 consecutive months as of July 2023, the rate of this decline is the smallest we’ve seen in over a year. Normal is the new normal.

Norhill’s Key Insights from the Houston Association of Realtors (HAR) July 2023 Market Update:

Single Family Home Sales: Sales decreased by 8.5% year-over-year, with 7,557 units sold in July 2023 compared to 8,256 in July 2022. This decline is the smallest since June 2022, which saw a 7.6% drop. When compared to the pre-pandemic era in July 2019, sales were down by 15.3%.  The housing segment below $100,000, which represents a mere 1.2% of the market, was the only segment to see a gain. All other price segments experienced declines, with homes priced over $1M seeing a decrease of 2.6%.

Townhouse/Condominium Sales: This segment experienced a 9.8% decline year-over-year, with 590 units sold in July 2023 compared to 654 in July 2022. The average price for this segment increased by 2.1% to $263,876, while the median price decreased by 2.2% to $220,000.

Home Pricing: The average price of single-family homes saw a minor increase of 0.6% to $428,140. However, the median price experienced a decline of 2.3% to $340,000. These figures remain below the record highs observed in 2022.

For a broader perspective, July 2023’s median price of $340,000 is a significant 36.0% increase from July 2019’s $250,000. The average price has also risen by 37.3% from $311,895 in 2019.

12-month graph ending July 2023, showing average and median Houston home prices. Prices have started to taper off in the past few months. Provided by a top Houston Realtor.

Inventory Levels: The months supply of homes in July 2023 was 3.2, the highest since May 2020. This is slightly above the national average of 3.1 months, as reported by the National Association of Realtors (NAR). A supply of 4.0 to 6.0 months is generally considered a balanced market.

July 2023 graph showing increased home listing inventory in Houston, which means more options out there for Houston home buyers. Provided by a top Realtor firm in Houston.

Likely to Sell: According to HAR, total active listings, or the total number of available properties, increased 13.2 percent to 37,079. July sales of all property types totaled 9,223 down 8.3 percent compared to July 2022. As a result, the absorption rate, which is a measure of any given home’s likelihood to sell, for June 2023 was 25 percent. When compared to Junes over the past 10 years, this is a pretty healthy absorption level, which should continue to help stabilize prices.

July 2023 graph showing 25% of active Houston home listings sold of the active listings in the same month. Compared to previous July's, this is pretty strong. Provided by a top-rated Houston real estate brokerage.

Days on Market: The time it took to sell a home increased from 27 days to 42 days in July 2023.

July 2023 graph showing average days to sell a single family home in Houston, which is currently at 42 days, which is pretty quick versus earlier this year. Provided by one of the top rated real estate brokerages in Houston.

Despite the challenges, the Houston housing market is showing resilience and signs of stabilization. Whether you’re looking to buy or sell, it’s essential to stay informed and make decisions based on the latest market trends.

Connecting with a local realtor can provide valuable insights tailored to your needs and contacting one of Norhill’s amazing Realtors is a good place to start. They can guide you through the market trends in your desired neighborhoods and advise on the best times to buy or sell. Fill out the form to get started.



Find and click your neighborhood below to find the latest listings and local market data for these great Houston neighborhoods.
Afton Oaks / Highland Village
Briargrove Park / Walnut Bend
Brooke Smith
Camp Logan / Glen Cove
Cottage Grove
EADO / Eastwood
Sawyer Heights / First Ward Art District
Garden Oaks
Houston Heights
Knollwood / Woodside
Memorial West
Meyerland Area
Oak Forest
Mangum Manor / Oak Forest West
Rice Military / Washington Corridor
River Oaks Shopping Area
Shady Acres
Shepherd Plaza Park
Spring Branch
Spring Valley
Timbergrove / Lazybrook
University Place / Museum Park
Westbury / Maplewood / Brays Oaks
West University / Southside
Willow Meadows / Willowbend
Norhill Realty and the MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Twelve-month totals may vary from actual end-of-year figures, due to individual changes to MLS records. This data is for informational purposes only and should not be the sole piece of data used in the evaluation of a buy or sell decision. Consult with one of our Realtors to evaluate any particular property so you can determine how the market relates to that property.