Houston’s Flourishing Real Estate Market in April 2024

As the sun embraced Houston in April, so did a warm wave of change in the real estate market, breathing life into both buyers and sellers. After a hesitant start to the spring homebuying season, the Houston housing scene witnessed a notable uptick, marking a promising shift in dynamics.

Data from the Houston Association of Realtors’ (HAR) April 2024 Market Update painted a vibrant picture. Single-family home sales surged by 9.2 percent across the Greater Houston area, with 7,926 units finding new owners compared to 7,256 in April 2023. This resurgence was mirrored in the expansion of inventory, now back to pre-pandemic levels, presenting a landscape ripe with opportunities for those navigating the housing market.

One of the most striking revelations was the performance of the luxury housing segment, homes priced at $1 million or above. Despite representing a mere 4.8 percent of the market, sales in this category soared by an impressive 33.8 percent, showcasing a robust demand for premium properties.

Thomas Mouton, HAR Chair from Century 21 Exclusive Properties, reflected on this blossoming market, noting that while elevated interest rates continued to influence decisions, buyers were adapting to the new realities, and sellers were finding their footing amidst rising inventory levels.

The numbers painted a clear picture of resilience and growth. The average price of a single-family home in Greater Houston rose by 4.6 percent to $437,198, marking the second-highest price in history, trailing closely behind May 2022’s record of $438,350. The median price also saw a healthy increase of 3.0 percent, settling at $340,000.

Beyond the realm of single-family homes, the broader real estate spectrum saw positive trends. Total property sales spiked by 8.7 percent, and the total dollar volume surged by 13.8 percent, crossing the $4 billion mark. Pending sales for single-family homes were up by 10.3 percent, showcasing a robust pipeline of future transactions.

Inventory levels, a crucial metric in gauging market health, expanded significantly. Months of inventory climbed from 2.6 to 3.7 months, a figure not seen since October 2019. Nationally, the housing inventory stood at a 3.2-month supply, according to the National Association of Realtors (NAR). This shift brings the market closer to a “balanced market” scenario, where neither buyers nor sellers hold a distinct advantage.

April’s real estate narrative in Houston was one of resilience, adaptation, and growth. With single-family home sales rebounding, inventory levels rising, and market dynamics adjusting, the city’s real estate landscape paints a promising picture for the months ahead. As the Houston Association of Realtors gears up to unveil its April 2024 Rental Home Update, anticipation brews about what more positive changes may lie on the horizon for this vibrant housing market.