February 2024 brought renewed optimism to the Houston real estate market, with a notable uptick in home sales and an expanding inventory setting a positive tone for the upcoming spring buying season.
The market’s positive momentum was evident in the 7% increase in total property sales. This growth, coupled with rising home prices and higher inventory, presents new opportunities for both Houston home buyers and sellers.
Norhill’s Key Insights from the Houston Association of Realtors (HAR) February 2024 Market Update:
Single-Family Home Sales
Single-family home sales in Greater Houston increased by 7.6% with 6,221 units sold compared to 5,781 in February 2023. This marks the 2nd consecutive month of year-over-year rising sales. Last month, sales rose 8.9 percent.
Townhouse/Condominium Sales
As has been the case over the past several months, townhouse and condominium sales continued to decline. Sales fell 8.1 percent year-over-year with 411 closed sales versus 447 a year earlier.
Market Segments
Home Pricing
The average single-family home price in Houston rose 4.1% to $400,252 and the median price rose 3% to $329,686. Despite a decline in total sales, Townhomes and Condominium home prices continued to rise. The average price rose 5.5 percent to $258,587 while the median price jumped 8.9 percent to $237,500.
Inventory Levels
Inventory levels for single-family homes rose to 3.4 months supply, up from 2.5 months a year earlier. Housing inventory nationally is at a 3 months supply, according to the latest report from the National Association of Realtors (NAR). For townhomes, inventory expanded from a 2 months supply last February to 4 months in February 2024. This is the highest inventory level for townhomes and condominiums since August 2020.
Likely to Sell
According to HAR, total active listings, or the total number of available properties, increased 22 percent to 39,757. February sales of all property types totaled 6,221 up 7.6 percent compared to February 2023. As a result, the absorption rate, which is a measure of any given home’s likelihood to sell, for February 2024 was 19 percent. This is in line with February absorption levels pre-pandemic and shows a fairly balanced market.
Days on Market
Days on market slightly decreased from 58 to 57 days, year-over-year. Days on market should continue to shorten as we approach the Spring selling season.
In the initial months of 2024, the Houston real estate market has experienced a notable increase in sales, despite worries about interest rates and inflation. This positive trend is promising for the upcoming Spring selling season, which traditionally sees the highest sales activity of the year in Houston. Given the performance in January and February, we anticipate a rise in home prices for home sellers and a broader range of options for homebuyers this Spring.
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.
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