Market Overview
The Houston real estate market in May 2024 presents a mixed picture with varied trends in different price segments. Below, we delve into the specifics of the market trends for properties below and above the $800K mark, offering insights into inventory, sales, pricing, and overall market conditions.
Below $800K Segment
Inventory and Sales
- Number of For-Sale Properties: Increased by 4.3% compared to April 2024.
- Sold Properties: Decreased by 7.2% from the previous month.
Pricing
- Median Price Range: Remained nearly unchanged compared to May 2023, with a slight increase of 0.7%.
- Average Price per Square Foot: Increased by 4.3% year-over-year.
- Average House Price Sold: $351,123.
- Average Price per Square Foot: $170.
Inventory Supply
- Monthly Supply of Inventory: 2.6 months, indicating tight inventory conditions.
Analysis
The below $800K segment in Houston's real estate market shows a nuanced trend. While the number of for-sale properties has grown, indicating an increase in supply, the decrease in sold properties points to a potential slowdown in buyer activity. However, the stable median price range and a notable rise in the average price per square foot reflect strong underlying demand and value appreciation.
The tight inventory, with only a 2.6-month supply, suggests a competitive market where buyers need to act swiftly, and sellers can benefit from favorable conditions.
Above $800K Segment
Inventory and Sales
- Number of Houses for Sale: Increased by 16.5% compared to May 2023.
- Number of Houses Sold: Decreased by 7.8% from the same period last year.
Pricing
- Median Price: Increased by 3.5% year-over-year.
- Average Price per Square Foot: Increased by 9.4% year-over-year.
- Average Home Sold Price: $1,492,877.
- Average Price per Square Foot: $397.
Inventory Supply
- Monthly Supply of Inventory: 3.6 months, indicating a low inventory and seller's market condition.
- Average Days on Market: 25 days.
Analysis
The above $800K segment in Houston's real estate market reveals a dynamic environment. The significant increase in the number of listings suggests more options for buyers, but the decrease in sales may indicate a more discerning buyer base or shifting market dynamics. The increase in both median prices and the average price per square foot highlights strong value appreciation and robust demand for high-end properties.
With a 3.6-month supply of inventory and properties spending an average of just 25 days on the market, the high-end market remains competitive, favoring sellers and underscoring the demand for luxury homes in Houston.
Conclusion
In summary, the Houston real estate market in May 2024 is characterized by a mix of increased inventory and selective sales activity across different price segments. While the below $800K market shows a slight deceleration in sales but strong price stability, the above $800K market reflects robust demand and significant price appreciation despite a slight dip in sales. Both segments indicate competitive market conditions, providing opportunities and challenges for buyers and sellers alike.
