The Houston Housing Market - The Sky is Not Falling
In Houston, the sky is not falling, prices aren’t plunging, and we are not in crisis. However, we are in a dramatically different market than six months ago.
If you read or watch the news, you would conclude that real estate markets everywhere are in crisis, and prices are plunging. While it’s true that a strong shift to a more normal market has happened, in fact, real estate markets are hyper-local in nature. This means that market conditions in your neighborhood are different than other neighborhoods in Houston, other states, and cities.
Here's a quote from the Houston Association Of Realtors (HAR), October Homes Sales Report:
"The average price of a single-family home rose 7.2 percent in October to $403,712 –below the record high of $438,290 reached earlier this year in May.
The median price jumped 8.4 percent to $330,500, which is also below the highest median of all time, $354,000, reached in June 2022. The average price for a single-family home in Houston first broke the $400,000 mark in March of this year. The median price has held above $300,000 since May of 2021." Click Here to read more from HAR.
What the data shows happening now, and what we expect to happen as we roll into the Fall and Winter seasons is:
For sellers, while it is more challenging today, there is good news. Listings priced appropriately, expertly presented, and professionally marketed are attracting offers.
The median number of days on market for properties sold in October was 43 days.
In this normalizing market, to compete, sellers agree to more concessions; seller-paid title policy, home service contacts, repair requests, buyer closing costs, and mortgage rate buy-downs.
The era of buyers waiving Option Periods, Inspections, and appraisals are over. We are also seeing new homebuilders pivot to compete for buyers by offering generous buyer concessions and financing incentives.
Mispriced, poorly marketed, and weakly merchandised properties languish, require price reductions, and attract poor offers.
We remain in a competitive and challenging seller’s market. For buyers, selection, and terms to purchase are improved.
Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity.