Houston TX Housing Market Update for April 2023

If you're keeping an eye on the Houston housing market, you're likely aware of the ups and downs that it's experienced over the past few years. The market has seen its fair share of highs and lows, and as we move into 2023, it's important to take a closer look at what's happening in the area.

Let's start with some numbers. If we compare March 2022 to March 2023 data, we can see that property sales were down by just about 21%, while total dollar volume was down by just about 20%. On the other hand, active listings were up by 69%, and single-family home sales were down by 18%. However, it's interesting to note that the average sales price was only down by .3%, which is similar to where it was at the same time last year. The median sales price was also down by 3%, and single months inventory was up by 1.6 months, while pending sales were down by about 5.2%.

One number that caught our attention was the single-family average sales price, which was at $408k in March 2023. Just the month before, in February 2023, the single-family sales price was at $385k, which means we saw an increase of about $20-30k in just one month. This begs the question: what's driving this increase in price?

One factor that often gets overlooked in the real estate industry is the existence of seasons. Just like any other industry, there are busy and slow seasons, and it's important to keep this in mind when analyzing market data. Looking at the chart for single-family home sales from March 2018 to March 2023, we can see a clear up-and-down trend that coincides with these seasons. For example, there's a busy season during the summer months, followed by a slow season during the fall and winter months.

During the winter months of 2022, we were in a normal downtrend, which was exacerbated by the fact that interest rates went up at the same time. However, in March 2023, we saw a pick-up in the market as we moved into our normal busy season, and interest rates started to come back down to around 5.5%. This is why we're expecting to see a growth in the number of units moved, similar to what we saw during the big drop from November 2022 to February 2023.

Another chart that's worth mentioning is the average and median home price chart, which shows that the average home price has been steadily increasing over the past few years. However, the median home price has remained relatively stable, which means that there's still a good range of prices for buyers to choose from.

In summary, the Houston housing market has seen its fair share of ups and downs, but it's important to keep a close eye on the data and understand the factors that are driving these changes.

As we move into our normal busy season and interest rates continue to drop, we're expecting to see a growth in the number of units moved, which is good news for both buyers and sellers.

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