The Partnership sends updates for the most important economic indicators each month. If you would like to opt-in to receive these updates, please click here.

Estimated Read Time: 2 minutes

Brokers closed on 7,718 single-family homes in June, an 11.6 percent dip from June of last year, according to data provided by the Houston Association of Realtors (HAR). This is the second month in a row for home sales to fall below last year’s levels. Year-to-date, sales are at their lowest level in five years, except for the drop seen in the early days of the pandemic.

The original assumption was that the drop in May was largely due to the derecho storm which caused power outages, disrupted business, and postponed closings. If that were the case, those delayed closings should have shown up in the June data. June should also be one of the strongest months for sales as families hurry to settle into their new homes prior to the start of the school year. However, this June proved to be the weakest of the past eight years.

The decline in home sales has boosted inventory. As of late June, there were over 30,000 single-family homes listed for sale through HAR’s Multiple Listing Service (MLS). That’s the highest level since August ’11.

By another measure—months of inventory—June’s listings are at the highest level in nearly ten years. The Houston resale market has 4.3 months of inventory, up from 3.0 months last year. That’s how long it will take to deplete current inventory based on the prior 12 months’ sales activity. A 3.5- to 4.0-month supply is considered a balanced market, where neither seller nor buyer has an advantage. With inventory exceeding four months, Houston has shifted from a seller’s market to a buyer’s market.

Weak home sales have helped to stabilize prices.  The median price of a single-family home sold through the MLS was $345,500 in June, up $2,500 (0.7 percent) compared to last year but down $8,500 (2.4 percent) from June ’23.  Over the past 12 months, the median price of a single-family home has hovered between $320,000 and $345,000. 

The one caveat in the data is that pending sales at the end of June were up compared to this time last year, but only slightly ahead of where they were five years ago.

June saw a decrease in the sale of townhomes, condos, and high-rise units as well. Prices, however, increased. The inventory of townhomes and condos is currently at 5.0 months, up from 2.7 months last June. The inventory for high-rise units is 8.8 months, down from 6.5 months last June. 

Prepared by Greater Houston Partnership Research

Patrick Jankowski, CERP
Chief Economist
Senior Vice President, Research
pjankowski@houston.org

Leta Wauson
Research Director
lwauson@houston.org