Houston Home Sales Slowly Move Toward Pre-Pandemic Levels
Houston’s housing market declines to pre-pandemic levels for the first time in three years.
According to the Houston Chronicle, the region’s 7,557 single-family homes sold in July marked an 8.5 percent decline from July 2022, according to the Houston Association of Realtors monthly report. It was the smallest year-over-year decline in more than 12 months as the market returned to more normal pre-pandemic conditions. The sales volume in July was 15 percent below the same month in 2019.
“Each passing month has moved the Houston housing market closer to what we consider normal, with seasonal influences, but consumers are still understandably taking a cautious approach to the home buying process, and many are ultimately choosing to rent,” said HAR Chair Cathy Treviño with LPT Realty.
The sharp descent in sales began last summer as mortgage rates shot up to 5.5 percent in July 2022 from about 3 percent in January, according to Freddie Mac. Rates have now settled at just under 7 percent.
With a relatively tight inventory of homes on the market, the drop in sales doesn’t necessarily mean bargains are to be had.
Home prices, which soared to record highs last summer, declined slightly or held steady. The median price fell 2.3 percent last month to $340,000 year over year, while the average rose 0.6 percent to $428,140. The median was $14,000 shy of the June 2022 record, while the average was $10,210 below the $438,350 record in May 2022.