Houston TX Housing Market Update for August 2023
The Houston housing market has been an unpredictable adventure, especially in the face of the pandemic's twists and turns and the steady rise of interest rates. But don't worry – we've got the inside scoop on the latest July 2023 Market Update straight from the Houston Association of Realtors (HAR). Let's buckle up and take a closer look at how the market is slowly but surely steering itself back to a state of normalcy. REMEMBER, if you’re like me and prefer to watch instead of read, check out my YouTube video where I break down all of this data for you!
Understanding the Data:
Before we dive into the nitty-gritty, let's make sure we're all speaking the same language. This market update is like a detailed map that guides us through the intricate landscape of Houston's housing scene. It's a lens that magnifies the market's movements, giving us a crystal-clear picture of what's happening on the ground.
Overall Market Data:
Hold onto your hats, because here's the scoop – July marked the 16th consecutive month of home sales decline across Greater Houston. But here's where it gets interesting – this time, the rate of decline was the smallest it's been in well over a year. It's like the housing market is flexing its muscles, showing hints of recovery and finding its footing once again.
Average and Median Home Prices:
Now, let's talk numbers. The price tags on single-family homes are playing it cool and steady. The average price nudged up a tiny 0.6 percent, landing at a respectable $428,140. Meanwhile, the median price took a chill pill, dipping by 2.3 percent to reach $340,000. Don't sweat it – we're still safely below the sky-high records set in May and June of 2022.
Seasonal Trends in Single-Family Home Sales:
Real estate, like many other industries, experiences seasonal fluctuations. Analyzing the number of units sold throughout the year provides valuable insights into market dynamics. Historically, the peak season for home sales in Houston falls during the summer months, particularly May, June, and July.
When comparing the number of units sold on a chart that spans five years, it becomes evident that the market experiences higher activity during the summer months. This aligns with the peak moving season when many individuals and families relocate. Conversely, the fall and winter months typically see a slight dip in home sales as the market slows down. However, it's important to note that Houston's real estate market has seen a shift in recent years, with a more balanced distribution of sales throughout the year. This can be attributed to factors such as job growth, population growth, and overall economic stability in the region.
Housing Inventory and Months of Supply:
Houston, we've got options. The inventory of available homes expanded to a welcoming 3.2 months in July – the loftiest level we've seen since May 2020. And guess what? On a national scale, the housing inventory is doing a similar two-step at 3.1 months, as noted by the National Association of Realtors (NAR). Imagine a seesaw where neither buyers nor sellers have the upper hand – that's the magic of a "balanced market."
Impact of Interest Rates:
Ah, the ever-elusive interest rates – the wildcard that keeps us guessing. But here's the kicker – the Houston housing market isn't letting them rain on its parade. Despite the challenges posed by rising interest rates, the market's proving its mettle. It's like a resilient surfer riding the waves, gracefully maneuvering through the ups and downs and steering its course towards calmer waters.
And there you have it – a panoramic view of the Houston housing scene in July 2023. While the market might not be breaking any speed records, it's undeniably showing promising signs of finding its groove once more. Sure, home sales may have taken a bit of a detour, but take note of what Cathy Treviño, Chair of HAR, reminds us – every month that passes nudges us closer to that coveted sense of "normal." So, whether you're pondering the path of purchasing your dream abode or opting for the flexibility of renting, remember this: the Houston housing market is charting its journey back, one stride at a time. Stay tuned for more updates as we ride this dynamic wave of change!
We hope this market update has provided you with valuable information about the current state of the Houston housing market. Stay tuned for future updates and analysis. If you have any further questions or require more specific information, feel free to reach out to us.
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Disclaimer: The information provided in this blog post is based on the latest available data at the time of writing, which is subject to change. It is intended for informational purposes only and should not be considered as financial or investment advice.