The Nan Market Report
The Greater Houston area’s housing market cooled off in October as mortgage rates rose and home sales fell. However, prices are still well above where they were a year ago. The market has been cooling off for seven consecutive months as the housing market moves toward a more normalized pace of activity following the pandemic.
Home Sales Data
The single-family housing market has seen a decline in sales this month, with 22.8% fewer units sold compared to October 2021. Year-to-date, this is a decline of 6.7% compared to 2021's record-setting volume.
For the 7th straight month, homebuying activity slowed, with mortgage interest rates hovering around 7%, almost double what it was a year ago. The lack of housing inventory below $400,000 is also contributing to the slowdown. Year-over-year single-family home sales dropped 22.8%. On a year-to-date basis, sales are trailing last year’s record pace by 6.7%.
Average Home Price Data
The average price of a single-family home rose 7.2% in October to $403,712. The median price jumped 8.4% to $330,500. The average price for a single-family home in Houston first broke the $400,000 mark in March of this year. The median price has held above $300,000 since May of 2021.
The average price for a single-family home rose 7.2% from September to October and was up 6% from a year ago. The median price increased 8% over the past month and 10% on an annual basis.
So What Does This Mean?
This slow cooling-off period is leading to an increase in months of inventory, which now sits at 2.5 months, the highest it has been in two years. Days on Market figures increased from 27 to 31 days. Despite these slight shifts in the market, this is still considered a seller’s market and there is still plenty of opportunity to enter the market as a seller.
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!