Wed. Sep 20th, 2023
    Houston Home Sales Continue to Decline, but Luxury Market Shows Promise

    According to the latest report from the Houston Association of Realtors (HAR), home sales in Houston experienced a 3.8% decline in August, marking the 17th consecutive month of declining sales. However, this decline is the smallest since May 2022, offering a glimmer of hope for the market.

    The Houston housing market, once characterized by multiple offers and homes selling above asking price, has now shifted to a buyer’s market. Buyers are no longer bidding thousands of dollars above the asking price, but rather negotiating prices closer to or even below the list price.

    Various factors have contributed to this prolonged slowdown. Mortgage rates around 7%, limited inventory, and relatively high home prices have made potential buyers more hesitant to commit to a new home. Additionally, some homeowners are experiencing what experts call “golden handcuffs.” These homeowners took advantage of historically low mortgage rates a few years ago and are now unable to rationalize selling their homes and buying at higher rates.

    Despite the challenges, Thomas Mouton, the HAR Chair-elect, believes that it is never a bad time to buy a home. He emphasizes that waiting to buy could lead to future regrets, as rates may continue to rise.

    In terms of pricing, Houston’s average home price in August rose by 2.5% to just over $420,000, while the median price remained flat at $354,000. The increase in average price suggests stability in the market.

    One positive aspect of the report was the performance of the luxury housing market in Houston. Sales of homes priced above $1 million saw a 3.7% increase in August, offering a small ray of hope among the overall decline. However, townhome and condo sales continued their decline, falling by 19% for the 15th consecutive month.

    Overall, the Houston housing market continues to face challenges, but recent data indicates some signs of improvement. With an increase in inventory and stability in home prices, there is hope for a rebound in the coming months.

    – Houston Association of Realtors (HAR)
    – HAR Chair-elect Thomas Mouton