As 2023 came to an end, the Houston real estate market received a welcome boost with the first increase in sales in 19 months. Additionally, lower mortgage rates, stable inventory, and stable-to-higher prices in most Houston neighborhoods, all provide signs of a good start for 2024.
Norhill’s Key Insights from the Houston Association of Realtors (HAR) January 2024 Market Update:
Single-Family Home Sales
Single-family home sales in Greater Houston increased by 9.0%, marking only the second rise in two years, with 5,009 units sold compared to 4,595 in January 2023.
Townhouse/Condominium Sales
January continued the consistent downward trend in townhome and condominium sales observed throughout 2023. There was a 4.0 percent decrease in year-over-year sales, with 340 transactions compared to 354 the previous year, marking the lowest monthly sales volume since the previous January.
Market Segments
Home Pricing
The average price of a single-family home increased by 2.7% to $391,080, dipping below $400,000 for the first time since February 2023. As for Townhouse/Condominium pricing. Those prices rose despite a slowdown in sales. The average price of townhomes and condominiums rose 7.0 percent to $247,437 and the median price jumped 14.1 percent to $223,000.
Inventory Levels
Inventory levels for single-family homes remained flat at a 3.3-month supply from December to January. However, inventory is up year over year. Housing inventory nationally is at a 3.2-month supply, according to the latest report from the National Association of Realtors (NAR).. For townhomes, inventory expanded slightly from a 3.5-month supply to 3.7 months from December to January. At current supply, inventory continues to be in line with pre-pandemic levels.
Likely to Sell
According to HAR, total active listings, or the total number of available properties, increased 17.8 percent to 38,410. January sales of all property types totaled 6,098 up 6.9 percent compared to January 2023. As a result, the absorption rate, which is a measure of any given home’s likelihood to sell, for December 2024 was 16 percent. this is actually higher than 4 of the 5 years previous to the pandemic.
Days on Market
Days on market slightly decreased from 58 to 60 days, year-over-year. Days on market should shorten once we hit the Spring selling season.
With the market showing signs of strength early in the year, all eyes are on how interest rates and consumer confidence will shape the Houston real estate landscape in 2024. Despite a recent increase in rates, we anticipate prices will keep improving, thanks to the persistently low inventory environment..
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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