Houston’s housing market rebounded from a prolonged slump in November, with sales increasing for the first time in 19 months.
The Houston Association of Realtors reported a 4.9% increase in sales last month, the first increase since March 2022. This is the first real ray of hope in a market plagued by high mortgage rates, low inventory and soaring home prices.
Mortgage rates have fallen slightly over the past month, contributing to the recent increase in sales.
“We’ve seen rates go down to the 6-point range, then into the 7-point range, into the 8-point range. So this gives people on the sidelines a fire to move forward and find something really good. “It’s a good, solid house,” said Daniela Sumbera, a HAR board member and local real estate agent.
Sales numbers were better than last November, but were down 3.2% compared to pre-pandemic November 2019.
The average price of a home in Houston increased 1% last month compared to November 2022 to $404,597, but the median price fell slightly to $326,000.
Inventories improved in November, with supply at 3.5 months, the highest level since November 2019. A balanced market typically means there are four to six months of available inventory.
“Having more inventory gives buyers more options to choose from and they don’t have to feel settled,” Sumbera said.
Sales of homes priced between $250,000 and $500,000 rose 8% in November.
The time it takes to sell a home has decreased slightly to 47 days.
Sales of condos and townhomes were slow last month. This is the 18th consecutive month of decline and a 3% decrease compared to November last year.