Houston TX Housing Market Update for October 2023
Are you considering a move to Houston, Texas, or maybe you already live in Houston and just want to know what’s going on with this crazy market!? Well, you're in the right place because I'm here to provide you with the latest housing market update for October 2023. I'm Rene Lara, a realtor who made the move to Houston from Southern California back in 2018. Whether you're in the market to buy or sell a home in Houston, I've got all the insights you need to navigate the current real estate landscape.
Let me introduce myself before we dive into the market data. I'm a bit of a numbers geek, and I firmly believe in the power of data visualization. I find that seeing the numbers and trends in charts and graphs makes it easier to understand the complexities of the housing market. So, if you're a visual learner like me, you're in good hands.
My primary source of data is the Houston Association of Realtors, the same association I'm a part of. They release comprehensive data on the Houston housing market, and I'm here to break it down for you, no fluff or hype, just the facts.
Now, let's get to the nitty-gritty of the Houston housing market for October 2023. Remember, if you prefer to watch rather than read, simply click the video below and watch my in-depth market update!
Houston Housing Market Update for October 2023
Property Sales:
In September 2023, property sales saw a 9.5% decrease compared to the same month in 2022.
The total dollar volume moved dropped by approximately 9.5%.
Total active listings increased by 13.7%.
Single-family home sales were down by about 11%.
However, the average sales price increased by just under 1% compared to the previous year.
Median sales prices only dropped about 2.2%.
Inventory increased to about three and a half months.
Pending sales were up by about 1.2%.
Interpreting the Data
Now, let's break down what all these numbers mean for the Houston housing market. The big question on everyone's mind is why home prices aren't dropping despite high-interest rates. We've been seeing interest rates hovering around 7.5% to 8%, so it's natural to wonder why prices remain stable. Here's the key to this puzzle:
The Mortgage Rate Lock-In Effect:
Over 70% of mortgage rates are currently below 4%.
This means that a significant portion of homeowners enjoys very low-interest rates.
While current interest rates are high, many homeowners are hesitant to sell and move to higher rates.
The crucial takeaway here is that supply and demand are at play. Even though interest rates are high, the demand for homes remains strong due to the large number of homeowners locked into low-interest rates. This situation keeps prices stable.
The Length of Homeownership
Another factor influencing the current market dynamics is how long people are staying in their homes. The average homeowner's tenure has increased over the years. In the early 2010s, it was common for homeowners to stay in their homes for around five years. However, from 2010 to 2022, the average tenure has extended to over nine years, and it's expected to rise further. This extended stay in homes reduces the inventory available for sale.
Market Seasonality
Understanding market seasonality is crucial when interpreting housing market data. In real estate, there are busy seasons and slow seasons. Generally, spring and summer are the peak periods, while fall and winter are considered slower seasons. During the slower seasons, prices may experience a slight drop, making it a more favorable time for buyers to get a good deal.
What Does the Future Hold?
As we look ahead, it's worth noting that interest rates are projected to decrease in the coming year. This is expected to trigger a surge in demand as buyers take advantage of lower rates. Therefore, if you're a prospective buyer, the next few months could present an excellent opportunity to secure a favorable deal.
On the other hand, if you're a seller, the market remains favorable. Despite the current dynamics, it's still a seller's market. The potential for high demand in the near future suggests that you might benefit from listing your property sooner rather than later.
Considering a Move to Houston?
Houston is a city that's experiencing significant growth and expansion. If you're contemplating a move to the area, I'm here to provide you with valuable guidance and insights based on my own experience moving to Houston with my family in 2018.
For more information or to get in touch with me, check out the details provided in the video description, or simply contact me using the link below! Whether you're buying or selling in the Houston market, I'm your trusted resource.
In conclusion, Houston's housing market remains robust, with unique dynamics driven by interest rates, homeowner tenures, and seasonal variations. Stay informed, reach out to experts like me, and make the most of the opportunities presented by the current market conditions.
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.