As 2023 nears its end, the Houston real estate market has received a welcome boost with the first increase in sales in 19 months, alongside other positive indicators. Furthermore, a recent change in Fed Policy has brought about a sharp decline in Mortgage rates, which could help catapult demand in 2024.  As of this writing, mortgage rates have fallen to their lowest level since May 2023.

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

Single-Family Home Sales 

For the first time since March 2022, sales saw a rise of 4.9% year-over-year, with 6,154 units sold compared to 5,864 in November 2022. This marks a significant shift in the market trend. However, sales were still down 3.2% compared to pre-pandemic November 2019. With rates now at 7-month lows, we believe this trend should continue into the new year.

Townhouse/Condominium Sales

The townhouse and condominium market continued to face challenges, with a 16.4% decline in sales.

Market Segments

Homes priced below $150,000, which make up 3.5% of the market, experienced declines. The most robust performance was in the $250,000 to $500,000 range, which saw an 8.0% increase and constitutes 59.8% of the market.

Home Pricing

The average price of single-family homes saw a slight increase of 1% to $404,597, while the median price experienced a small decline of 0.9% to $326,000. Despite the slowing market over the past 12 months, home prices are relatively flat year over year. The average price for townhouses and condominiums saw a slight increase, and the median price rose by 6.6%.

12-month graph ending November 2023, showing average and median Houston home prices. Year-over-year homes prices are relatively flat in Houston. Provided by a top Houston Realtor, Norhill Realty.

Inventory Levels

The months supply of homes expanded to 3.5 months, the highest since November 2019 and matching its October 2023 level. Housing inventory nationally is at a 3.6-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-month supply is generally considered a “balanced market” in which neither buyer nor seller has an advantage.

Historic home listing inventory levels in Houston, Texas over the past 10 years ending in November 2023. This graph comes courtesy of Norhill Realty, one Houston top rated real estate brokerages.

Likely to Sell

According to HAR, total active listings, or the total number of available properties, increased 13.5 percent to 40,724. November sales of all property types totaled 7,472 up 3.7 percent compared to November 2023. As a result, the absorption rate, which is a measure of any given home’s likelihood to sell, for November 2023 was 18 percent. As we’ve seen throughout the year, Absorption rates have fallen back to levels we saw before the pandemic and have remained consistent since October.

This is a graph of the Absorption Rate, number of homes that sold relative to how many were active on the market, in Houston Texas in November 2023. This graph is brought to you by Norhill Realty, a top Realtor in Houston.

Days on Market

Homes have been taking about 47  days on average to sell over the past 2 months, which is has been relatively consistent for the past 7 months or so.

Graph of the average number of days it takes for a home to sell in November 2023 and the previous 12 months. Days on market has been relatively flat over the past 7 months. This graph is brought to you by one of the top real estate Brokerages in Houston, Norhill Realty.

The few weeks have marked a significant shift in Houston’s real estate market, with home sales rising despite the typical holiday slowdown. This uptick, fueled by a strong local economy and changing mortgage rates, is expected to persist into the first quarter of 2024, especially in upscale neighborhoods with homes above $500k. If mortgage rate trends continue, we anticipate further price increases and a particularly active Spring 2024 market. Prospective homebuyers should consider evaluating their options soon if they are considering a move in 2024.

Connecting with a local realtor is a good way to get started on your homebuying journey in 2024 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.

GET MATCHED WITH AN AGENT

By submitting information, I am providing my express written consent to be contacted by representatives of this website through a live agent, artificial or prerecorded voice, and automated SMS text at my residential or cellular number, dialed manually or by autodialer, by email, and mail.

 

Find and click your neighborhood below to find the latest listings and local market data for these great Houston neighborhoods.
Afton Oaks / Highland Village
Bellaire
Briargrove
Briargrove Park / Walnut Bend
Brooke Smith
Camp Logan / Glen Cove
Cottage Grove
Downtown
EADO / Eastwood
Sawyer Heights / First Ward Art District
Garden Oaks
Houston Heights
Knollwood / Woodside
Memorial West
Meyerland Area		 Midtown
Montrose
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.