The Houston housing market is showing signs of improvement as it returns to pre-pandemic conditions. Although February sales declined compared to last year, they were still higher than in February 2019. For the first time in over two years, year-over-year pricing has dropped, and more homes are being listed for sale. This is good news for those who were hesitant to buy a home last year due to rising mortgage interest rates. Let’s dive in.

Home Sales Data

The Houston housing market saw mostly negative results in February, including declines in single-family home sales, total property sales, and total dollar volume. However, active listings remained high compared to last year. On a positive note, the months of inventory continued to improve and reached a 2.6-month supply in February.

Nationally, the housing inventory is slightly higher at a 2.9-month supply, according to the National Association of Realtors (NAR). A balanced market typically has a 4.0 to 6.0-month supply, where both buyers and sellers have equal advantages.

Average Home Price Data

The Greater Houston area experienced a 23.0 percent year-over-year decrease in single-family home sales in February, with 5,723 units sold versus 7,430 in 2022. However, after record highs last spring, pricing is now stabilizing, with median and average prices dropping by 1.6 percent and 2.4 percent, respectively, marking the first pricing declines since spring 2020.

For comparison to pre-pandemic levels, February sales are up 7.2 percent compared to 2019, with 5,339 single-family homes sold. The median price at that time was $233,000, and the average price was $284,864, significantly lower than current prices. Sales are also 8.7 percent higher than they were in February 2018, when 5,265 units were sold.

So What Does This Mean?

As prices become more reasonable and more homes become available on the market, this provides an excellent opportunity for homebuyers who have been waiting for the right moment to enter the market.

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)