In 2023, Houston's housing market faced challenges for the second consecutive year due to nationwide economic factors. Mortgage interest rates, reaching 20-year highs, led potential buyers to abandon purchasing plans or opt for rental housing. Although the housing landscape is stable in 2024, uncertainties remain regarding the Federal Reserve's actions on interest rates and lingering consumer concerns about inflation.

2023 marked a negative trend in Houston housing, with a 12.0 percent decline in single-family home sales to 83,854 and a 13.1 percent drop in total property sales to 102,367. The total dollar volume decreased by 12.6 percent to $40 billion. Despite disappointing sales, Houston's situation mirrored the broader U.S. housing market, impacted by economic forces.

December witnessed a 6.2 percent YoY decrease in single-family home sales, following a 4.7 percent increase in November. Although most housing segments experienced declines, the $250,000 to $500,000 range remained unchanged from December 2022. Homes priced at $1 million and above saw a 2.1 percent decline.

The median price of a single-family home in December remained unchanged at $330,000 YoY, with an average price of $407,817, indicating statistical flatness.

Throughout 2023, rising mortgage rates discouraged homebuying, resulting in double-digit declines in sales volume. By October, mortgage rates reached levels not seen in two decades. Despite a 4.7 percent sales increase in November, it couldn't prevent 2023 from being the second consecutive down year.

Inventory, starting at a 2.6-months supply in January, grew to 3.5 months in October and November, reaching the highest level since November 2019. December's inventory registered a 3.3-months supply, indicating a balanced market.

June recorded the highest sales volume in 2023 with 8,723 single-family units sold. Despite this, total single-family home sales for the year declined by 12.0 percent compared to 2022, with 83,854 homes sold.

On a year-to-date basis, the average single-family home price remained flat at $412,161, while the median price dropped by 2.5 percent to $330,000. The total dollar volume for full-year 2023 decreased by 12.6 percent to about $40 billion.

INFORMATION PROVIDED BY THE HOUSTON ASSOCIATION OF REALTORS