Houston Home Sales Gain Momentum in March

Spring has arrived, bringing with it the promise of renewal and growth, and nowhere is this more evident than in the Greater Houston housing market. As the curtains rose on the spring homebuying season in March, the stage was set for a dynamic interplay between supply and demand, with a robust inventory poised to meet the anticipated surge in buyers.

According to the latest insights from the Houston Association of Realtors’ (HAR) March 2024 Market Update, the Greater Houston area witnessed a flourishing inventory landscape, with active listings maintaining their strength year-over-year. However, amidst this backdrop of abundance, the market also experienced its first sales decline of the year.

Houston Multiple Listing Service (MLS) reported a 7.5 percent decrease in single-family home sales compared to the same period last year. Despite this dip, the region still saw a commendable 7,334 units changing hands, highlighting the enduring appeal of homeownership in the Houston area. This decline in sales activity coincided with an uptick in the months supply of homes, which climbed from 2.6 to 3.5, mirroring levels last observed in October and November 2023.

In March, all housing segments experienced a slowdown in sales, with the low end of the market particularly affected by a significant decline of 28.9 percent, contrasting with the luxury segment's modest decrease of 0.4 percent. Despite this, demand for single-family home rentals remained strong throughout the month. HAR is set to release its March 2024 Rental Home Update on Wednesday, April 17. HAR Chair Thomas Mouton of Century 21 Exclusive characterized the market as undergoing a "spring cleaning," noting an increase in active listings as homeowners test the market, although some buyers may exercise caution due to fluctuating interest rates. On the pricing front, the average and median prices of single-family homes in Greater Houston both saw moderate increases, rising by 1.3 percent to $412,464 and 1.6 percent to $330,000, respectively.

MARCH MONTHLY MARKET COMPARISON 

In March, the Greater Houston area witnessed its first decline in single-family home sales for the year, experiencing a 7.5 percent decrease compared to the same period last year.

This downturn was reflected across the board, with total property sales dropping by 7.0 percent and total dollar volume shrinking by 5.6 percent, from $3.7 billion to $3.5 billion. However, amidst this decline in sales, the market demonstrated resilience in terms of inventory, with active listings surging ahead by 26.1 percent compared to March 2023.

This influx of available properties contributed to a healthier market balance, even as the months of inventory expanded from a 2.6-month supply to 3.5 months, aligning more closely with the national housing inventory level of 2.9 months reported by the National Association of Realtors (NAR). Typically, a 4.0- to 6.0-month supply is considered indicative of a "balanced market," where neither buyers nor sellers hold a significant advantage.

Single-Family Homes Update

The Houston housing market saw a 7.5 percent dip in single-family home sales in March, with 7,334 units sold compared to 7,926 last year. The average price edged up 1.3 percent to $412,464 while the median price rose 1.6 percent to $330,000.

• $1 - $99,999: increased 6.9 percent
• $100,000 - $149,999: increased 8.9 percent
• $150,000 - $249,999: decreased 3.8 percent
• $250,000 - $499,999: increased 8.9 percent
• $500,000 - $999,999: increased 18.3 percent
• $1M and above: increased 48.0 percent