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The Houston Association of Realtors (HAR) reports that brokers closed on 7,185 single-family homes in October ’24, a 12.8 percent increase over October ’23. That includes 5,163 existing and 2,652 newly constructed homes sold through HAR’s Multiple Listing Service (MLS). Existing home sales are up 14.7 percent, according to HAR. Comparable data for newly constructed homes sold through HAR are not available. 

This summer saw the typical seasonal bump in home prices, but the increase was small compared to previous years. Prices in the summer of ’24 were up 1.6 percent on average compared to the summer of ’23. In ’21 and ’22, they were up 18.2 and 13.8 percent, respectively.

Though October saw an uptick in home prices, the increase was also minor. The median price for a single-family home was $334,900 in October, up only 2.7 percent from October ’23 and 1.5 percent from October ’22. 
 

Single-family inventory is up 27.3 percent from this time last year and triple the level of March ’22, the recent low point. As of late October, there were over 31,000 single-family homes listed for sale through the MLS.

The Houston resale market has 4.4 months of inventory, up from 3.5 months this time last year. That’s how long it will take to deplete current inventory based on the prior 12 months’ sales activity. A 3.5- to 4.0-month supply is considered a balanced market, where neither seller nor buyer has an advantage. With inventory exceeding four months, Houston has shifted from a seller’s market to a buyer’s market.

Mortgage rates have trended down over the past year but ticked up in recent weeks. The average interest for a 30-year fixed mortgage peaked at 7.79 percent in October ’23, fell to 6.08 percent in late September of this year, then rose to 6.79 percent in early November. 

October saw an increase in the sale of townhomes, condos, and high-rise units. The median price for high-rise units climbed while that for townhomes and condos slipped. Inventories for all property types continue to grow.

Prepared by Greater Houston Partnership Research

Patrick Jankowski, CERP
Chief Economist
Senior Vice President, Research
pjankowski@xyschool.net

Leta Wauson
Research Director
lwauson@xyschool.net