Resilience Amid Uncertainty, October 2024 Houston Real Estate Market Update

As we approach the end of 2024, the Houston real estate market continues to demonstrate impressive strength across both the below 800k and above 800k price segments. Despite the uncertainty typical of an election season, buyers are returning to the market, encouraged by stable inventory levels and steady price growth. Here’s a breakdown of Houston's market performance for October 2024, segmented by price tiers.

Below 800k Market: Steady Growth and Strong Demand

In the below 800k segment, the Houston market has shown resilience compared to October 2023 and September 2024. Here are some key metrics:

- Sold Properties: Increased by 7.8%, a clear indication that buyer demand is alive and well, even amidst economic uncertainties.

- For-Sale Properties: Up by 28.5%, providing buyers with ample choices and easing inventory pressure.

- Median Price: Rose by 4.3%, reflecting ongoing appreciation in home values within this segment.

- Average Price per Square Foot (SF): Increased by 3.7%, pushing the average sold price to $341,707, with an average price per SF at $167.

- Inventory: Held steady at 3.6 months compared to October 2023, providing a balanced environment that benefits both buyers and sellers.

- Days on Market: Average days on the market for properties in this tier is at 40, indicating a stable but swift-moving pace.

The below 800k market's strength suggests that buyers are ready to invest despite broader economic factors. With a healthy inventory and manageable price growth, this segment is positioned for continued stability, giving buyers ample choice and sellers the confidence to market their properties.

Above 800k Market: High Demand and Price Appreciation

The above 800k market has shown parallel growth to the below 800k tier but with even more robust signals:

- Sold Properties: Increased by 14.2%, a strong indicator of sustained demand in the higher-end market.

- For-Sale Properties: Rose by 14.6%, reflecting sellers’ confidence in listing properties as demand continues to rise.

- Median Price: Increased by 3.9%, while the average price per SF jumped significantly by 9.4%, pushing the average sold price to $1,651,951, with an average price per SF at $419.

- Inventory: Slightly lower than October 2023 at 3.9 months, suggesting a competitive market that favors sellers.

- Days on Market: Average days on the market dropped to 30, underscoring the strong demand for higher-end properties.

The above 800k market has demonstrated a strong performance with rising property values and reduced market time, making it an ideal time for sellers to capitalize on motivated buyers. The demand has remained resilient, with inventory tight enough to drive appreciation while giving buyers enough options to explore.

Insights and Outlook: Houston’s Market Resilience in Focus

The October 2024 data highlights a balanced Houston real estate market. The presence of ample inventory in both segments—without excessive oversupply—ensures that buyers have options, while sellers can sell confidently, knowing that property values remain strong.

With increased sales and stable prices, it's clear that buyers who had previously paused are now reentering the market, likely reassured by the consistency in inventory and pricing. Both below and above 800k segments show a favorable trend as we head into the last quarter of the year.

Final Thoughts

Despite election season uncertainties, Houston’s real estate market has proven resilient. Both below and above 800k price points are showing signs of strength, underscoring that demand is still robust. For sellers, these positive signals mean it’s a prime time to list confidently, while buyers benefit from a market with sufficient options. As we move into the close of 2024, Houston’s market stability reinforces the city’s status as a resilient real estate hub.