What is Happening in Houston -June 2024

Houston Real Estate Market Update - June 2024

As we navigate through 2024, the Houston real estate market continues to exhibit dynamic trends that are crucial for buyers, sellers, and industry professionals to understand. This June, the market has shown significant changes in both the below $800k and above $800k segments. Here’s a detailed look at the current state of the market and what it means for you.

Below $800k Market

In June 2024, properties priced below $800k have seen an increase in available listings and a shift in sales dynamics:

- Number of Houses for Sale: Increased by 29.3% compared to June 2023.

- Sold Properties: Decreased by 19.5% compared to June 2023.

- Median Price: Increased slightly by 0.3% to $344,947.

- Average Price per Square Foot: Remained unchanged at $167.

- Monthly Supply of Inventory: Increased by 24.5%, reaching 2.9 months, still indicating a strong seller's market.

These changes suggest that while there are more homes available, buyer activity has slowed, resulting in longer times on the market. The stable price per square foot indicates that while the rapid price increases have halted, property values remain robust. Sellers might need to be more strategic in pricing and presentation to attract buyers in this more competitive landscape.

Above $800k Market

For the luxury segment, properties above $800k have demonstrated resilience and sustained demand:

- Number of For-Sale Properties: Increased by 14% compared to June 2023.

- Sold Properties: Decreased by 24.4% compared to June 2023.

- Median Sold Price: Slightly increased by 0.4% to $1,454,463.

- Average Sold Price per Square Foot: Increased by 7.7%, reaching $393.

- Monthly Supply of Inventory: Increased by 16.2%, reaching 3.7 months, indicating a seller's market with high demand.

Despite more properties coming onto the market, the luxury segment continues to attract buyers willing to pay premium prices. The increase in price per square foot underscores the sustained value and demand for high-end homes in Houston. Sellers in this market can remain confident, though they should be prepared for potentially longer selling periods due to the increased inventory.

Key Insights

1. Market Dynamics: Both segments show an increase in inventory, reflecting more sellers entering the market. However, the below $800k market is seeing a slowdown in sales, while the above $800k market remains strong with higher price per square foot.

2. Seller’s Market: Inventory levels for both segments indicate a strong seller’s market. Even with increased listings, the supply remains below the threshold that would indicate a balanced market (6 months of inventory).

3. Pricing Trends: The stabilization of prices in the below $800k market and the increase in the above $800k market suggest varied buyer behavior and demand. Sellers in the lower segment may need to adjust expectations, while luxury property owners can leverage the continued high demand.

Conclusion

The Houston real estate market in June 2024 presents a complex yet promising landscape. For buyers, increased inventory means more options and potential negotiation power, especially in the below $800k segment. Sellers, particularly in the luxury market, can capitalize on the high demand and rising prices. Staying informed and strategic is key to navigating this dynamic market effectively.

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Author: Ali Ghamsari

Ali Ghamsari is a seasoned real estate professional specializing in the Houston market. With a focus on market trends, property values, and strategic selling, Ali provides expert advice to help clients make informed real estate decisions. Follow Ali on LinkedIn for regular updates and insights into the Houston real estate market.