As temperatures rose in June, and coming off May’s disruptive Derecho, the Houston housing market saw a cooldown from last year’s levels for the second consecutive month, despite an increase in available homes for prospective buyers.
Key Highlights from the Houston Association of Realtors (HAR) June 2024 Market Update:
Home Pricing: The average price of a single-family home was relatively stable at $432,090, while the median price slightly increased to $345,500. Both were up slightly from June 2023.
Likely to Sell: According to HAR, total active listings, or the total number of available properties, increased 33.8 percent to 47,563. June sales of all property types totaled 9,133 down 13.6 percent compared to June 2023.
As a result, the absorption rate, which is a measure of any given home’s likelihood to sell, for June 2024 was 19 percent. This is the lowest absorption level we have seen in over 10 years. Over the past 2 years, we have been maintaining levels at or above pre-pandemic levels.
Luxury Market: After some big months earlier this year, the luxury home sales ($1 million+) experienced a decline 19.4% decline compared to June 2023.
Inventory: June’s market slowdown was paired with a notable rise in inventory, offering more choices to buyers amid ongoing affordability concerns. The month’s supply of homes increased to 4.3, up significantly from last year’s 3.1. According to the National Association of Realtors (NAR), the national inventory stands at 3.7 months. A supply of 4.0 to 6.0 months typically indicates a “balanced market,” where neither buyers nor sellers have an advantage.
Single-Family Homes Update:
Despite the overall decline, pending single-family sales increased by 8.4% from last June, suggesting potential rebound signs. The days on market increased slightly from 45 to 46 days, and the inventory of homes grew significantly from last year, reflecting more balanced market conditions.
Townhouse/Condominium Trends:
The townhouse and condominium market also experienced a slowdown with a 19.9% decrease in sales. However, prices continued to rise, with the average price increasing by 7.8% to $271,356 and the median price jumping 12.1% to $241,000.
Looking Ahead:
The Houston real estate market remains dynamic. While rising pending sales and recent drops in mortgage rates suggest a potential rebound later this summer, the immediate impact of Hurricane Beryl may negatively affect July’s performance. However, with lower mortgage rates and an increase in available home listings, buyers may find the most favorable conditions in years.
Remember that every market and neighborhood in Houston is unique. Your home or the home you are looking to buy, may be dealing with different market dynamics than the ones affecting the entire Houston market. Engaging with an experienced Realtor, like the ones found at Norhill Realty, can provide critical guidance and insights.
For a comprehensive overview and expert advice, consider connecting with Norhill Realty to navigate these trends effectively. Fill out the form to get started.
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