Houston Real Estate Market Surges Despite Rising Mortgage Rates in October 2024
The Houston real estate market continued its strong performance in October 2024, showing a 12.8% increase in single-family home sales, despite rising mortgage rates. According to the Houston Association of Realtors (HAR), 7,185 homes were sold in the Greater Houston area in October, compared to 6,372 in the same month last year. This uptick in home sales signals ongoing demand for homes across the city, particularly in the luxury market, and highlights the resilience of the Houston housing market as it enters the final quarter of 2024.
As home sales climbed, the average home price in Houston also saw an increase. The average price for a single-family home rose by 5.2%, reaching $423,166, while the median price increased by 2.7%, reaching $334,900. The luxury market led the charge, with homes priced at $1 million and above seeing a remarkable 33.8% increase in sales. Homes in the $500,000 to $999,999 range also saw a surge, with a 25.9% increase in sales compared to last year. The only price segment to experience a decrease was homes priced between $100,000 and $149,999, which saw a decline of 7.3%.
(Source: HAR.com)"While mortgage rates have edged up, they remain well below the peak levels reached last year," said Thomas Mouton, HAR Chair and Century 21 Exclusive Properties agent. "This more favorable rate environment is helping sustain buyer demand and driving continued activity in the Houston housing market as we enter the final months of 2024."
Houston Housing Inventory Continues to Expand
Houston’s housing inventory continued to grow in October, offering more opportunities for prospective buyers. The number of available single-family homes on the market reached 31,094, up by 23.6% from October 2023. Additionally, the months of inventory increased to 4.4 months, up from 3.5 months last year. This increase in inventory signals a shift toward a more balanced market, where neither buyers nor sellers have a significant advantage. A balanced market, typically defined as having 4.0 to 6.0 months of inventory, helps stabilize prices and creates a more favorable environment for both parties.
(Source: HAR.com)The luxury market, in particular, has been driving much of the growth. Homes priced above $1 million saw the largest increase in sales, followed by homes priced between $500,000 and $999,999. These segments have shown strong performance as affluent buyers continue to seek high-end properties in Houston.
Houston Townhome and Condominium Market Shows Growth
In addition to single-family homes, the townhouse and condominium market in Houston also saw positive movement in October. Sales of townhomes and condominiums increased by 6.5% year-over-year, marking the first growth in this segment since October 2022. The average price for a townhouse or condominium rose by 2.6% to $279,018, while the median price dropped 3.2% to $232,400. Inventory for townhomes and condominiums increased to a 5.9-month supply, the highest level since July 2012, providing more options for buyers interested in these types of properties.
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October 2024 Market Overview and Key Highlights
- Single-family home sales increased by 12.8% year-over-year, with 7,185 units sold.
- The average price of single-family homes rose 5.2% to $423,166, while the median price climbed 2.7% to $334,900.
- Total property sales increased 10.2% year-over-year, with 8,627 homes sold in October.
- Dollar volume of sales surged by 19.5% to $3.5 billion.
- Luxury homes ($1 million and above) saw a 33.8% increase in sales.
- Inventory levels for single-family homes expanded to a 4.4-month supply, up from 3.5 months last year.
- Townhome and condominium sales grew by 6.5%, with an average price increase of 2.6%.
With the final months of 2024 ahead, Houston’s real estate market remains active and healthy, despite rising mortgage rates. The continued increase in inventory and strong demand, especially in the luxury segment, suggests that the market will remain resilient through the end of the year. Based on the data available, buyers and sellers can expect continued growth and opportunities in the Houston housing market well into 2025.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
