The Houston real estate market has been on a rollercoaster ride in the past year. While it managed to charge through the pandemic with no let-up in sales, it could not withstand the powerful economic headwinds that began swirling in 2022. These headwinds brought an end to a long and much-admired record-setting run for the market. In this blog post, we'll dive deeper into what caused this dip in the market, and what we can expect for the future. From limited affordable housing inventory to the rise of mortgage rates, we'll explore the factors that have affected the market and why the rental market has thrived as a result. We'll also take a look at the current state of the market and what we can expect for the early part of 2023. So, if you're curious about the Houston real estate market, keep reading!
Single Family Home Sales Data
The number of single-family homes sold went down 32.6% compared to December 2021 (one year ago). This is the 9th consecutive month that sales have dropped overall. The average price of these homes went up 5.1% to $409,777, and the median price went up 3.8% to $330,000. The price of these homes has gone up less in the last 3 months of 2022 than it did in the first 6 months of the year. In addition, it's taking longer for these homes to sell, with the average Days On Market going from 38 days to 57 days.
Townhouse & Condominium Sales Data
Townhome and condo sales first began to fall in June 2022 and continued downward through December 2022. In December, 46.1% fewer units were sold compared to the same month in the previous year. The average price went down 6.6% to $241,502 and the median price went down 2.3% to $214,999. More units were available on the market, going from a 1.7 months inventory supply to 2.0 months inventory supply.
So What Does This Mean?
Houston's real estate market began 2022 with strong sales, but things changed when the average price of a home reached a high of $438,301 in May and the median price reached a high of $353,995 in June. This, combined with a lack of houses available for sale and an increase in mortgage rates, made it hard for people to buy homes. This made 2022 the first year that home sales went down since 2015.
On a positive note, there were more homes for sale by the end of the year, which made it a bit easier to buy a home. The number of houses available went up to 2.7 months supply in December, the highest level in two years.
If you are curious about statistics in your area, reach out to one of our incredible agents today for an in-depth analysis of your neighborhood’s market conditions!
(Market data provided by HAR.com)