June Housing Market Update for Houston

The Houston housing market saw a cool-down in June, with home sales dropping below 2023 levels for the second consecutive month. Despite the rising temperatures, the market experienced a slowdown, providing more choices for prospective buyers as the inventory of available homes increased.

According to the Houston Association of Realtors (HAR) June 2024 Market Update, single-family home sales in the Greater Houston area fell by 11.6% year-over-year, with 7,718 units sold compared to 8,729 in June 2023. The months supply of homes rose from 3.0 to 4.3, the highest it has been in over a decade.

All housing segments experienced a decline in sales in June. The luxury segment ($1 million+) saw the most significant drop, with a 19.4% decrease in sales from June 2023. Homes priced between $500,000 and $1 million had the smallest decline at 5.8%.

Despite the overall sales decline, the average price of a single-family home increased slightly by 0.8% to $432,090, while the median price rose by 0.7% to $345,500.

HAR Chair Thomas Mouton commented, “There are more options available for homebuyers, but affordability remains a challenge. Elevated mortgage rates and higher prices are causing many to adopt a wait-and-see approach, with some opting to rent instead.”

June Market Comparison

June marked the second month of declining home sales. However, single-family pending sales increased by 8.4% compared to June 2023. Total property sales dropped by 13.6%, and total dollar volume decreased by 12.2% to $3.8 billion. Active listings surged by 33.8% year-over-year.

Months of inventory increased to 4.3 months, the highest since October 2012. Nationally, the housing inventory stands at a 3.7-months supply, with a 4.0- to 6.0-months supply considered a balanced market.

Single-Family Homes Update

In June, single-family home sales decreased by 11.6% year-over-year, with 7,718 units sold. The average price remained flat at $432,090, and the median price was $345,500. Active listings were 40.0% higher than last year, with 30,053 available homes. The average days on market increased from 45 to 46 days, and months of inventory rose to 4.3.

Sales by price segment:

  • $1 - $99,999: -17.6%
  • $100,000 - $149,999: -6.4%
  • $150,000 - $249,999: -7.2%
  • $250,000 - $499,999: -11.5%
  • $500,000 - $999,999: -5.8%
  • $1M and above: -19.4%

Existing single-family home sales dropped by 15.1%, with 5,507 homes sold. The average price increased by 3.1% to $447,142, and the median price rose by 2.7% to $349,000.

Townhouse/Condominium Update

Sales of townhomes and condominiums declined by 19.9% year-over-year, with 506 closed sales in June 2024. The average price rose by 7.8% to $271,356, and the median price increased by 12.1% to $241,000. Inventory grew from a 2.7-months supply to 5.0 months, the highest since September 2012.

June Highlights

  • Single-family home sales down 11.6%
  • Days on Market for single-family homes increased from 45 to 46 days
  • Total property sales down 13.6% with 9,133 units sold
  • Total dollar volume decreased by 12.2% to $3.8 billion
  • Single-family median price remained flat at $345,500
  • Single-family average price remained flat at $432,090
  • Single-family home months of inventory rose to 4.3 months
  • Townhome/condominium sales declined by 19.9%, with the median price up 12.1% to $241,000 and the average price up 7.8% to $271,356

Jared Greenberg | JG Home Group | KW Premier Realty