The Monthly Market Pulse: Houston’s Real Estate Review – August 2023

As summer made way for the back-to-school season—Houston’s real estate landscape is inching ever closer to those good ol’ non-pandemic trends. Let’s delve into the numbers and see what they tell us!

The Soft Landing of Home Sales 🛬

The summer-to-fall transition comes with our real estate market ATC (Air Traffic Control) reporting the softest landing for home sales decline in more than a year! According to the Houston Association of Realtors (HAR) report, sales of single-family homes took a slight 3.8% fall in August 2023, pushing 7,983 homes into the arms of new owners—down from 8,301 in August 2022. Hold on to your hats because this dip is the gentlest we’ve experienced since the minuscule 0.8% drop in May 2022!

Inventory Improvements and Balancing Acts ⚖️

Who doesn’t enjoy a good balancing act? Buyers sure do when it means months of supply climbed to 3.3 this August—a figure we last saw in May 2020, again. Although still a little shy of achieving a “balanced market” typically sitting in the 4-6 months range, we’re certainly back into territory not seen for a while.

Splurging or Saving? Luxury and Rentals 💎

While the majority of sales segments reported a slight dip, our luxury housing enthusiasts didn’t follow suit. The segment—responsible for a slim 3.7% of all homes on the market—was the only one showcasing a gain this month. Rentals of single-family homes and townhomes/condos powered through, confirming their continuing strength in the market.

Prices Settling Down, Eyes on the Future 💰

As we’ve seen, prices of single-family homes are taking a well-deserved breather. The average price rose by a humble 2.5% to $420,124 tickling just below May 2022’s record peak of $438,350. The median price stays cozy at $339,000, mere steps away from its June 2022 record-breaking moment of $354,000.

Looking Back, Stepping Forward 🛤

Taking a trip down memory lane, we notice that the current 3.8% decline is a substantial improvement when contrasted with the 8.0% and 4.5% reductions when compared to pre-pandemic August 2019 and August 2018, respectively.

Yes, folks, we’re undoubtedly steering back towards familiar market conditions—a return to normalcy following pandemic-induced market turbulence. Exciting times lie ahead, and as always, the Selling Houston Team is here to support and guide you towards your real estate goals!