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High interest rates continue to weigh on Houston’s housing market. March ’24 closings were the lowest for March since before the pandemic. Median sales prices have changed little over the past 18 months. Resale inventory continues to build.

Mortgage rates are rising again. The rate peaked at 7.62 percent in October ’23, trended down through January, but rose over the past three months. The 30-year fixed rate averaged 6.78 percent in February, 6.82 percent in March, and 6.99 percent in April.
 

The median price of a single-family resale home was $330,000 in March ’24, a marginal increase from $324,850 in March of last year but a drop from red-hot March of ’22 when the median price was $334,900. 

Through most of ’22, home prices rose at a double-digit annual rate. Through most of ’23, they declined one to four percent. So far this year, prices have appreciated at roughly a 2.0 percent rate. Home values in Houston historically rise 3.0 to 4.0 percent annually.

Single-family resale inventory is approaching pre-pandemic levels. There were 24,798 single-family homes listed for sale through the Houston Association of Realtors Multiple Listing Service (MLS) in March ’24. That’s up from 19,374 in March ’23 and more than double the 10,412 listed in March ’22. 

The drop in sales and increase in listings has expanded inventory from a 2.6-month supply last March to a 3.5-month supply this March. Months of inventory estimates the number of months it will take to deplete current active 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.

Days on market (DOM), or the actual time it took to sell a home, eased slightly from 62 days in February to 55 days in March.

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