After a five-month decline, Houston’s housing market rebounded in October, signaling renewed confidence among buyers and sellers. The Houston Association of Realtors (HAR) reported notable increases across various market indicators, suggesting a positive shift in the local real estate landscape.
Key Highlights from October’s Market Performance:
- Surge in Single-Family Home Sales: Sales of single-family homes rose by 12.8% year-over-year, totaling 8,627 units sold. This uptick marks a significant turnaround from the previous months’ downward trend.
- Price Appreciation: The median price for single-family homes increased by 2.7% to $334,900, while the average price climbed 5.2% to $423,166. These gains reflect sustained demand and a competitive market environment.
- Extended Days on Market (DOM): Homes remained on the market slightly longer, with DOM increasing from 48 to 51 days. This modest extension may indicate a more deliberate decision-making process among buyers.
- Inventory Expansion: The months of inventory for single-family homes grew to a 4.4-month supply, up from 3.5 months in October of the previous year. This increase provides buyers with more options and suggests a move toward a more balanced market.
- Revival in Townhome/Condominium Sales: For the first time in two years, townhome and condominium sales experienced growth, rising by 6.5% year-over-year. This resurgence indicates a broadening of buyer interest across different property types.
Sales Performance by Price Segment:
- $100,000 – $149,999: Decreased by 7.3%
- $150,000 – $249,999: Increased by 16.1%
- $250,000 – $499,999: Increased by 7.9%
- $500,000 – $999,999: Increased by 25.9%
- $1M and above: Increased by 33.8%
The substantial growth in higher-priced segments suggests a robust demand for luxury properties, highlighting Houston’s appeal to affluent buyers.
Outlook:
Houston’s housing market demonstrated resilience in October, with rising sales and prices indicating a healthy recovery. The expansion in inventory offers a more balanced environment for buyers and sellers alike. As we move forward, maintaining this momentum will be key to sustaining the market’s positive trajectory.