September Real Estate Market Update

Below $700,000 Real Estate Market Update

Houston's real estate market is experiencing a strong performance for homes priced below $700,000. Despite rising interest rates and a cooling economy, the demand for these affordable houses remains high. The number of houses for sale has increased by 11.7% from January 2023 to the end of September, while the number of sold properties has seen a significant increase of 37.7% in the same time period.

Not only is the number of sales increasing, but prices are also on the rise. The median sold price has increased by 5.5% compared to January 2023, indicating a positive trend. Additionally, the average sold price per square foot has seen a substantial increase of 9.5% in the same period, highlighting the high demand and limited supply of homes in this price range.

September saw a notable increase in inventory, with a 17.7% growth compared to the previous month, and reached a 2.9-month supply of inventory. This suggests that more homes are becoming available for prospective buyers.

Above $700,000 Real Estate Market Update

In September, Houston's high-end real estate market experienced a robust and prosperous month. Properties priced above $700,000 showcased exceptional performance, contributing to the overall growth of the market. The median sold price, steadily climbing since January 2023, recorded a significant increase of 2.1%, reaching an impressive $982,000 in September. Furthermore, the average sold price per square foot demonstrated a noteworthy surge of 4%, reflecting the strong demand and value appreciation in this thriving real estate market.

Supply and demand are both high in this market segment. The number of houses sold has increased by 64.3% since January 2023, while the number of available properties for sale has also increased by the same percentage, totaling 1,019 houses in September.

This increase in inventory is a typical trend for this time of year. At the end of September, the month's supply of inventory stood at 4.4 months.

Townhomes and Condominiums Market Update.

The demand for townhomes and condominiums in Houston is on the rise as the younger professional population continues to grow. With the influx of millennials seeking convenient urban living options, the real estate market has seen a significant increase in the availability of these types of properties. Since January 2023, there has been a noteworthy 24.8% increase in the number of townhomes and condominiums listed for sale, providing prospective buyers with a wider range of options to choose from. Additionally, the number of houses sold has also seen a substantial 26.7% increase, indicating a strong market demand and a favorable environment for both buyers and sellers. This trend highlights the attractiveness of Houston as a vibrant and thriving city, attracting young professionals who value the convenience and amenities offered by townhome and condominium living.

In September, the monthly supply of Inventory increased by 8.1% and reached 3.1 months, indicating a slight uptick in available housing options. Despite the increase in inventory, prices continued their upward trajectory, reflecting the persistent demand in the market. From January to the end of September 2023, the average price per square foot experienced a notable 8.1% increase, while the median price saw a slightly higher growth of 8.5%. These price escalations culminated in a new record high of $191,000, showcasing the steady appreciation of real estate values in the area.