April 2024, What is Happening in Houston

Houston's real estate market continues to evolve, and April 2024 data reveals a landscape marked by both opportunity and challenge. Here's a deeper dive into the key trends shaping the market:

The Under $800K Segment: A Seller's Advantage

• Inventory expanded by a healthy 22.4% compared to April 2023, providing buyers with more options.
• Despite this, sales activity also increased by 2.4%, indicating strong demand within this price range.
• Price growth remains evident: The median price climbed 4.1% year-over-year, while the average price per square foot rose 3.7% to $170.
• The most significant factor is exceptionally low inventory at just 2.5 months of supply. Homes selling in an average of 33 days further solidifies the seller's advantage.

Luxury Market ($800K+): Inventory Tightens, Prices Climb

• A 17.1% increase in listings compared to April 2023 signals a slight easing in the luxury segment.
• Sales activity saw a more modest increase of 1.7%, suggesting some stabilization at higher price points.
• Price appreciation remains a defining feature: The median price surged by 8.7%, and the average price per square foot rose 2.7% to $380.
• Like the lower price bracket, the luxury market faces inventory constraints of 2.5 months. Homes are selling quickly, with an average of just 27 days on the market.

Implications for Buyers, Sellers, and Investors

• Buyers across price points: Fast action is essential. Partnering with an experienced agent can help navigate competitive bidding and secure your desired property.
• Sellers: Market conditions are favorable. Consider pricing strategies that balance current demand with your long-term goals.
• Investors: Areas experiencing strong price growth and limited inventory may present the potential for appreciation. Due diligence on rental demand and neighborhood factors is key.

Critical Takeaway:

Houston's real estate market is undeniably dynamic. The interplay of demand, price trends, and inventory levels varies across price segments and neighborhoods. Staying informed of localized trends is crucial for success.

What changes are you observing in your local Houston market? Share your insights below!