The Houston housing market experienced a notable shift in August 2024, with declining sales volumes allowing inventory to expand and prices to moderate. This change has created a more favorable landscape for potential homebuyers in the Greater Houston area. In this blog post, Houston real estate expert Chris Schmidt discusses the August 2024 Houston housing market data to help buyers, sellers, and investors understand the current real estate market in Houston, Texas.

Key Takeaways:

• Expanding inventory and moderating prices are creating more opportunities for buyers.
• Single-family home sales in Greater Houston declined 8.3% year-over-year in August 2024.
• Housing inventory expanded to 4.5 months, the highest level since September 2012.
• The average price of a single-family home increased slightly by 0.9% to $421,912.
• The luxury home segment ($1 million+) showed growth, while other price ranges experienced declines.

Sales Decline Continues

According to the Houston Association of Realtors’ (HAR) August 2024 Market Update, single-family home sales across the Greater Houston area declined 8.3% year-over-year. The HAR Multiple Listing Service (MLS) recorded sales of 7,340 units compared to 8,006 in August 2023. This marks the fourth consecutive month of declining sales, indicating a significant cooling in the market.

The slowdown in sales was not uniform across all market segments. Interestingly, the luxury segment, representing homes priced at $1 million and above, showed resilience with a 2.0% increase in sales. However, all other housing segments experienced slower sales, with homes priced between $100,000 and $149,000 seeing the most significant decline at 13.2% year-over-year.

Inventory Expansion

One of the most notable changes in the August market was the substantial increase in available inventory. The months of inventory for single-family homes expanded from a 3.2-months supply last August to 4.5 months – the highest level since September 2012. This increase in inventory is providing more options for potential buyers and helping to balance the market.

“The expanding inventory we’re seeing in Houston is a positive sign for buyers who have been struggling in a competitive market,” says Houston real estate expert Chris Schmidt. “With more choices available, buyers have a better chance of finding a home that meets their needs and budget.“

Active listings for single-family homes surged by 34.6% year-over-year, with 30,841 homes available in August – the highest number since July 2011. This increase in available properties is contributing to a shift from the seller’s market we’ve seen in recent years to a more balanced market, potentially even tipping towards a buyer’s market.

Price Moderation

Despite the decline in sales, home prices in Houston showed only modest changes:

• The average price of a single-family home edged up by 0.9% to $421,912
• The median price declined slightly by 0.3% to $336,940

This price moderation, combined with the expanding inventory, is creating more opportunities for potential homebuyers who may have been priced out of the market in previous months.

Market Segments Performance

Breaking down the market by price segments reveals varying performance:

• $1 – $99,999: decreased 4.7%
• $100,000 – $149,999: decreased 13.2%
• $150,000 – $249,999: decreased 11.6%
• $250,000 – $499,999: decreased 6.5%
• $500,000 – $999,999: decreased 11.4%
• $1M and above: increased 2.0%

The luxury segment’s positive performance stands out amidst the general decline, suggesting continued strength in high-end real estate demand.

Townhouse and Condominium Market

The townhouse and condominium market also experienced a significant decline, with sales dropping 16.7% to 475 units. The average price for these properties declined 1.2% to $258,952, while the median price remained relatively stable at $226,000.

Inventory in this segment expanded considerably, from a 3.1-months supply in August 2023 to 5.5 months – the highest level since August 2012.

Days on Market

The average time it took to sell a home, or Days on Market (DOM), increased from 43 to 47 days. This slight increase gives buyers more time to consider their options and make informed decisions.

Mortgage Rates and Market Outlook

As of early September 2024, the average 30-year fixed mortgage rate was 6.35%, having fallen 144 basis points from its peak in October 2023. This decline in rates, coupled with expanding inventory, is expected to boost buyer confidence and potentially stimulate home sales in the coming months.

Tips for Buyers

1. Take advantage of increased inventory: With more homes available, you have a better chance of finding a property that meets your needs and budget.
2. Don’t rush your decision: The increased Days on Market means you can take more time to consider your options carefully.
3. Get pre-approved for a mortgage: Even though the market is cooling, having a pre-approval can give you an edge in negotiations.
4. Consider different neighborhoods: With more inventory, you might find opportunities in areas you previously couldn’t afford.
5. Negotiate: In a more balanced market, there may be more room for negotiation on price and terms.

Tips for Sellers

1. Price your home realistically: With more competition, accurate pricing is crucial to attract buyers.
2. Enhance your home’s appeal: Consider making minor upgrades or staging your home to stand out in a crowded market.
3. Be flexible: You may need to be more open to negotiations or buyer requests than in previous years.
4. Work with an experienced real estate agent: In a changing market, professional guidance is more important than ever.
5. Consider timing: If you’re not in a rush to sell, monitor the market and consider waiting for more favorable conditions.

Call Houston Real Estate Expert Chris Schmidt to Buy or Sell a House in Houston

If you’re considering buying or selling a home in the Houston area, now is an excellent time to work with a seasoned professional who understands the nuances of this shifting market. Chris Schmidt, owner of Your Home Sold Guaranteed Realty - Chris Schmidt Team, brings 18+ years of experience and deep familiarity with the Houston housing market to help you navigate your real estate journey.

Chris is a member of the Houston Association of Realtors and has earned the Graduate, Realtor Institute designation from the National Association of Realtors. His team consistently breaks performance records and has earned numerous 5-star reviews from satisfied clients. With Chris Schmidt, you’ll have access to:

1. Extensive market knowledge and expertise
2. A proven track record of success in the Houston real estate market
3. Personalized service tailored to your specific real estate goals
4. Effective marketing strategies for sellers
5. Insider access to the best and newest listings for buyers

Don’t navigate this changing market alone. Call or text Chris Schmidt today at 713-322-5604 to start your home buying or selling journey with confidence!

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!

Frequently Asked Question About August 2024 Houston Housing Market