In a striking shift, Houston's real estate market has seen home sales jump for the first time in nearly two years, hinting at a possible end to a streak of sluggish performance. According to a report from the Houston Association of Realtors, home sales in November rose by 4.9% compared to the same month last year, signaling the first such upturn since March 2022.
While the overall numbers suggest a positive trend, they are still down 3.2% from the pre-pandemic days of November 2019, as outlined by Houston Public Media. Lighting a fire under potential buyers, the slight dip in mortgage rates has been quoted as a possible catalyst for the improved sales figures.
"We saw rates drop down to the sixes and we have been seeing them in the sevens and eights, so I think that gave fire to people sitting on the sidelines, gave them that push to go ahead and move forward with it and find a really good, solid home," Daniella Sumbera, HAR board member and local realtor, told Houston Public Media.
While sales have shown an increase, pricing remains steady, which may further ease potential buyers into the market. November's average and median home prices in Houston held at approximately $404,597 and $326,000, respectively. As reported by the Houston Chronicle, the inventory of available homes has risen to a supply of about 3.5 months - closer to the ideal balanced market indicator of four to six months of inventory.
The newfound vigor in Houston's housing market isn't uniformly spread across all home categories. Sales of condominiums and townhomes continue to languish, with an 18th consecutive month of decline, dropping 3% compared to last November, as reported by Houston Public Media. Yet, homes priced between $250,000 and $500,000 saw a remarkable increase in sales of 8% in November. "Having more inventory gives buyers more opportunities to choose from and not have to feel like they're settling," Sumbera said, during a misplacement of optimism for continued growth across all sectors of the housing market.
There could be more good news on the horizon for prospective homeowners as well. The easing of mortgage rates is anticipated to persist, with industry experts not expecting a rise in the coming months. "Home sales hinge heavily on interest rates, so hopefully consumer confidence will be restored as we begin the new year, especially since inventory has steadily improved and prices have moderated, creating more favorable conditions for buyers," said Cathy Treviño, HAR chair with LPT Realty, in a statement obtained by the Houston Chronicle. With a forecast of an average rate for a 30-year fixed loan hovering around 7.1% for the first quarter, the gears of the housing market may continue to turn more smoothly as we move into the new year.
