Here’s what you need to know about Houston’s housing market.
What’s going on in Houston’s housing market? Today, we’ll discuss the market numbers for Houston in December and the entire year of 2023 so that we can understand our market as we head into the new year.
Let’s start with the December 2023 numbers. Total property sales were slightly lower year over year compared to December 2022. Active listings have increased, but the notable figure is that the pending sales index is up over 14% from December 2022. This continues the trend of double-digit year-over-year increases in the pending sales index observed in October, November, and now December. This trend is gaining momentum as we enter 2024, with expectations of a more active year in total real estate transactions.
Now, turning to the full year 2023 compared to 2022, there was a significant 13% decrease in total transactions. However, despite this decline, the average sales price remained consistent, and the median sales price only decreased by 2.5% percent.
Despite the decrease in transactions, there wasn’t a substantial drop in pricing. Contrary to expectations of a real estate market crash, prices remained stable. It’s essential to provide perspective, considering the real estate markets in 2020, 2021, and 2022 were influenced by abnormally low interest rates for a significant portion of those years.
Comparing the 2023 market to 2019, the total transaction number is quite similar, indicating a normalization in the real estate market. Impressively, the real estate activity in 2023 surpasses that of 2019, even with significantly higher interest rates. This suggests that the Houston real estate market will be stable for years to come.
As the year begins, it’s an excellent time to evaluate the value of your current home and your real estate needs. If you have any questions about either, feel free to call or email us. We look forward to hearing from you.