The Houston real estate market faced significant challenges from Hurricane Beryl in July, which disrupted power for over 2.2 million households and affected many home closings across the Greater Houston area. Despite these setbacks, the market saw an uptick in high-end sales contributing to overall growth in single-family home sales and prices.
Key Highlights from the Houston Association of Realtors (HAR) July 2024 Market Update:
Home Prices: The average price of a single-family home rose to a new record of $445,440, that’s up 4.7 percent year over year. The median price also increased 2.9 percent year-over-year to $350,000.
Likely to Sale: According to HAR, total active listings, or the total number of available properties, increased 30.5 percent to 47,348. July sales of all property types totaled 8,969 down 2.1 percent compared to July 2023.
As a result, the absorption rate, which is a measure of any given home’s likelihood to sell, for July 2024 was 19 percent. This is the lowest absorption level we have seen in over 10 years for July.
Luxury Market: The luxury market saw a 14.2% increase in sales, and homes priced between $500,000 and $1 million rose by 9.1%. Sales in other segments were mixed, with the majority seeing a slowdown.
Inventory: Since June, inventory levels have started to level off. After a big spike early this summer, inventory was relatively flat from June to July. According to the National Association of Realtors (NAR), the national inventory stands at 4.1 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:
Single-family homes continued to perform well with an increase in sales and prices. The average sale price set a new record, and the median price increased to $350,000. Days on Market fell slightly month-over-month and up slightly year over year.
Townhouse/Condominium Trends:
Townhome and condominium sales remained slow, reflecting broader market trends. However, the inventory for these properties expanded significantly, indicating a shift towards a buyer’s market in this segment as well.
Looking Ahead:
Despite the hurricane’s impact, the market’s resilience was evident with a slight growth in single-family home sales and significant price increases. The inventory of homes rose substantially, providing more options for buyers, while active listings increased by 30.5% compared to last year.
The Houston market is navigating through post-hurricane recovery with promising signs of recovery in high-end segments and a steady increase in inventory levels. With recent declines in mortgage rates and more balanced conditions for buyers and sellers, we could be looking at a very active fall in Houston real estate.
For a comprehensive overview and expert advice, consider connecting with Norhill Realty to navigate these trends effectively. Fill out the form to get started.
[vr_column size=”1/2″ center=”yes”]
[vr_note note_color=”#FFFF66″]
GET MATCHED WITH AN AGENT
Oops! We could not locate your form.
[/vr_note]
[/vr_column]