The Houston housing market seems to be back on track! After a sluggish August, the numbers for September 2024 show signs of stability, with home sales increasing, inventory levels holding steady, and prices showing resilience. For homeowners, buyers, and real estate professionals, these trends are positive indicators of a balanced market. Let’s dive into the details and what it all means for the real estate landscape in Greater Houston.
Sales Rebound in September
The latest report from the Houston Association of Realtors (HAR) reveals that single-family home sales rose by 1.7% compared to September 2023, with 6,973 units sold versus 6,858 units last year. While this might seem like a modest increase, it’s a welcome change from the previous months, which had shown declines.
But it’s not just the sales that improved. Inventory levels held steady with a 4.4-month supply, which is the highest since 2012. A balanced market typically has between 4-6 months of inventory, meaning that both buyers and sellers are on relatively equal footing. For comparison, the national average stands at a 4.2-month supply, according to the National Association of Realtors.
Home Prices Hold Steady
Despite the fluctuations in sales over the past few months, home prices have shown surprising stability. The average price of a single-family home remained almost unchanged at $415,435, while the median price edged up slightly by 1.1% to $335,000. This means that, while home sales dipped in some segments, home values are holding their ground, indicating a healthy market.
Which Price Ranges Are Thriving?
One of the most interesting insights from the September data is the performance of different price ranges:
- Homes priced between $250,000 and $499,999 made up nearly 60% of all home sales and saw a 4.2% increase from the previous year. This segment clearly remains the most popular for buyers, reflecting the demand for mid-range homes in Houston.
- Affordable homes priced under $100,000 also experienced a 3.5% increase, likely driven by first-time buyers and investors.
- At the luxury end, homes priced at $1 million and above rose by 2.0%, showing that there is still activity in the high-end market despite broader economic conditions.
Unfortunately, homes priced between $100,000 and $249,999 saw declines, reflecting affordability challenges in that range.
Rental Market Takes a Hit
One segment of the market that saw a downturn was the rental market. Single-family home rentals experienced a slowdown for the first time this year. While the reasons behind this aren’t entirely clear, it may indicate that more buyers are entering the market, taking advantage of steady prices and balanced inventory.
HAR plans to release a detailed report on the September rental market soon, so stay tuned for more insights on that front.
Condos and Townhomes Continue to Struggle
The townhome and condominium market did not fare as well in September, with sales falling 23.0% year-over-year. However, both the average and median prices rose significantly—by 10.9% and 7.1% respectively—suggesting that while fewer units are selling, the ones that do are commanding higher prices.
Inventory in this segment also expanded, reaching a 5.8-month supply, the highest since 2012. This could provide an opportunity for buyers looking to enter the market at a potentially lower price point before inventory levels normalize.
What This Means for Buyers and Sellers
If you’re a seller, the current market conditions are favorable, especially if your property falls within the mid-range price bracket. With stable prices and sufficient inventory, it’s a good time to list your home and attract serious buyers. However, keep in mind that homes may stay on the market a little longer than last year, as the average Days on Market (DOM) increased from 45 to 51 days.
For buyers, the balanced market means you have more options to choose from, without facing the fierce competition that characterized much of the post-pandemic housing market. Inventory is steady, and prices aren’t skyrocketing, making it a great time to explore your options and make a well-informed decision.
Looking Ahead: What’s Next for Houston Real Estate?
The stability seen in September is an encouraging sign that the Houston housing market is adapting to changing economic conditions. With the continued strength in the $250,000 to $499,999 price range and steady inventory levels, we can expect a more predictable market going into the fall and winter months.
If you’re considering buying or selling in Houston, staying informed is key. Make sure to reach out to a local real estate professional to get personalized advice tailored to your specific needs.
Conclusion
Overall, the Houston housing market in September 2024 demonstrated a strong bounce-back from the previous month, with sales increases, steady prices, and balanced inventory. It’s a great time to take advantage of these conditions whether you’re a buyer or a seller.
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