Despite a year marked by volatile mortgage rates, Houston’s housing market ended 2024 on a strong note, driven by a surge in home sales and robust inventory levels. Homebuyers kept with rising inventory despite fluctuating mortgage rates and higher home prices. All-in-all the market remains stable and balanced between buyers and sellers.

Chart and Infographic of the Houston real estate market for December 2024 and the end of year 2024. Providing statistics such as home prices, inventory levels, and days on market. Brought to you by one of the top real estate firms in Houston, Norhill Realty.

Key Highlights from the Houston Association of Realtors (HAR) December/end of year 2024 Housing Market Update:

  • Yearly Overview: In 2024, Houston’s housing market experienced modest growth after two years of sales declines. The total property sales remained stable compared to 2023, with a notable 1.3 percent increase in single-family home sales totaling 85,163 units.
  • Pricing Trends: The average home price reached a peak of $443,362 in July, setting a new record, before moderating to $425,150 by year-end. On an annual basis, the average price rose by 2.5 percent.

December Monthly Market Insights:

Home Prices: The average home price increased by 5% to $425,150, and the median price edged up by 1.3% to $334,290.

12-month graph ending December 2024, showing average and median Houston home prices. Year-over-year homes prices are up in Houston. Provided by a top Houston Realtor, Norhill Realty.

Likely to Sale: According to HAR, total active listings, or the total number of available properties, increased 22.1 percent to 49,121. November sales of all property types totaled 7,750 up 3.3 percent compared to November 2023.

As a result, the absorption rate, which is a measure of any given home’s likelihood to sell, for December 2024 was 19 percent. This remains unchanged from this time last year. We have a few more homes on the market, but homes sales are keeping up.

Market Segments:

Most housing segments saw growth, with the luxury segment—homes priced at $1 million and above—experiencing the most significant increase. Sales in this segment surged by 64.6 percent compared to last December

Inventory: Inventory levels expanded from a 3.3-months supply last December to 4 months, which has held steady since August. Housing inventory nationally stands at a 3.8-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-months supply is generally considered a “balanced market” in which neither buyer nor seller has an advantage.

Graph showing listing inventory levels in Houston, Texas over the past 10 years ending in December 2024. Current inventory levels are much more balanced between buyers and sellers. This graph comes courtesy of Norhill Realty, one Houston top rated real estate brokerages.

Days on Market:

At 59 days, the days on market is higher than what we have seen in recent months, but we usually see a slight increase during the holidays so this is not a surprise.

Graph of the average number of days it takes for a home to sell in December 2024 and the previous 12 months. Days on market have declined year over year. This graph is brought to you by one of the top real estate Brokerages in Houston, Norhill Realty.

Looking Ahead:

The Houston housing market enters 2025 with positive momentum. Steady demand and an expanding inventory helped maintain buyer confidence despite ongoing economic uncertainties and higher than expected mortgage rates. We anticipate this momentum will continue in 2025. Based on predictions for the Houston economy in 2025, and despite expectations mortgage rates will remain relatively flat, we believe the local Houston will remain resilient with modest price growth and stable buyer demand.

To receive more market updates like this one on a monthly basis, fill out the form below.

SIGN UP FOR OUR MONTHLY NEWSLETTER

Oops! We could not locate your form.