Norhill's Key Insights from the Houston Association of Realtors (HAR) November 2023 Market Update:
Single-Family Home SalesFor the first time since March 2022, sales saw a rise of 4.9% year-over-year, with 6,154 units sold compared to 5,864 in November 2022. This marks a significant shift in the market trend. However, sales were still down 3.2% compared to pre-pandemic November 2019. With rates now at 7-month lows, we believe this trend should continue into the new year.
Townhouse/Condominium SalesThe townhouse and condominium market continued to face challenges, with a 16.4% decline in sales. Market Segments Homes priced below $150,000, which make up 3.5% of the market, experienced declines. The most robust performance was in the $250,000 to $500,000 range, which saw an 8.0% increase and constitutes 59.8% of the market.
Home PricingThe average price of single-family homes saw a slight increase of 1% to $404,597, while the median price experienced a small decline of 0.9% to $326,000. Despite the slowing market over the past 12 months, home prices are relatively flat year over year. The average price for townhouses and condominiums saw a slight increase, and the median price rose by 6.6%.
Inventory LevelsThe months supply of homes expanded to 3.5 months, the highest since November 2019 and matching its October 2023 level. Housing inventory nationally is at a 3.6-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-month supply is generally considered a “balanced market” in which neither buyer nor seller has an advantage.
Likely to SellAccording to HAR, total active listings, or the total number of available properties, increased 13.5 percent to 40,724. November sales of all property types totaled 7,472 up 3.7 percent compared to November 2023. As a result, the absorption rate, which is a measure of any given home's likelihood to sell, for November 2023 was 18 percent. As we've seen throughout the year, Absorption rates have fallen back to levels we saw before the pandemic and have remained consistent since October.
Days on MarketHomes have been taking about 47 days on average to sell over the past 2 months, which is has been relatively consistent for the past 7 months or so. The few weeks have marked a significant shift in Houston's real estate market, with home sales rising despite the typical holiday slowdown. This uptick, fueled by a strong local economy and changing mortgage rates, is expected to persist into the first quarter of 2024, especially in upscale neighborhoods with homes above $500k. If mortgage rate trends continue, we anticipate further price increases and a particularly active Spring 2024 market. Prospective homebuyers should consider evaluating their options soon if they are considering a move in 2024. Connecting with a local realtor is a good way to get started on your homebuying journey in 2024 and contacting one of Norhill's amazing Realtors is a good place to start. They can guide you through the market trends in your desired neighborhoods and advise on the best times to buy or sell. Fill out the form to get started.
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