Houston’s November Home Sales Remain Strong Despite Elevated Mortgage Rates, Led by Luxury Market
The Houston housing market demonstrated resilience in November 2024, with home sales continuing to outperform expectations despite rising mortgage rates. According to the Houston Association of REALTORS® (HAR) November 2024 Housing Market Update, single-family home sales increased by 6.0 percent compared to November 2023, reaching a total of 6,559 units sold.
This marks the third consecutive month of year-over-year gains in Houston’s real estate market, reflecting strong demand in spite of elevated mortgage rates. Notably, the luxury segment of the market led the way with significant growth, showing a 21.4 percent increase in sales for homes priced at $1 million or more.
(Source: HAR.com)“Houston's housing market continues to demonstrate its strength and stability, even with rising mortgage rates,” said HAR Chair Thomas Mouton, with Century 21 Exclusive Properties. “This positive momentum bodes well for both buyers and sellers as we enter the home stretch of 2024. While increased inventory is attracting more people to the market, we know that many consumers remain cautious due to concerns about interest rates and inflation.”
Market Performance Overview
The Houston market experienced a total increase of 3.3 percent in property sales in November, reaching 7,750 total units sold, compared to 7,504 during the same period last year. Additionally, total dollar volume surged 11.1 percent, reaching $3.1 billion. The increase in both property sales and dollar volume indicates a robust market despite challenges posed by rising interest rates.
One of the key drivers of growth in the Houston market has been the rise in inventory. Active listings were up 22.1 percent compared to November 2023, signaling an expanding pool of available properties for buyers. Homes priced between $100,000 and $149,999 saw a decline in sales during the month, but this segment makes up only 2.1 percent of the market. On the other hand, the lower end of the market—homes priced under $99,999—saw a notable 21.3 percent rise in sales, while homes priced between $250,000 and $499,999 experienced a 3.3 percent increase.
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Price Growth in Single-Family Homes
The average price of single-family homes in Houston rose by 4.1 percent this November to $418,903, while the median price increased by 1.5 percent to $329,990. The price per square foot also grew, climbing from $172 to $175 year-over-year. However, the number of days it took to sell a home slightly increased, from 48 days last November to 52 days this year.
Despite a slight increase in the number of days on the market, the overall market is still characterized by relatively tight inventory. The months of inventory for single-family homes has held steady at 4.4 months, compared to 3.5 months in November 2023. This figure, which represents the number of months it would take to deplete current active inventory based on the previous 12 months’ sales activity, is an indication of continued demand and a competitive market.
Sales Breakdown by Price Segment
November’s performance was notable for both the high-end luxury market and more affordable price ranges:
- Homes priced $1 million and above saw a 21.4 percent increase in sales.
- Homes priced $500,000 to $999,999 saw a 13.3 percent increase.
- Homes in the $150,000 to $249,999 range experienced a 10.1 percent increase in sales.
However, the market for homes priced between $100,000 and $149,999 saw an 8.3 percent drop, although these homes account for a very small portion of the total market.
(Source: HAR.com)Townhome and Condominium Market
While single-family homes performed well, the market for townhomes and condominiums showed some weakness. Sales in this segment were down 12.0 percent year-over-year, with 373 units sold in November. The average price for townhomes and condominiums dropped by 10.0 percent to $242,617, and the median price declined by 6.6 percent to $224,000. Inventory in this segment, however, increased significantly, with a 5.9-month supply, marking the highest level since 2012.
Looking Ahead
The continued strength in Houston's housing market is a positive indicator for both buyers and sellers heading into 2025. While the market faces challenges from higher mortgage rates, the increase in inventory, sustained demand, and robust sales in higher-priced segments suggest that the Greater Houston area remains a desirable destination for homebuyers.
As the year closes, the Houston real estate market remains dynamic, offering opportunities across a wide range of price points and housing types. For more detailed information, visit the Houston Association of REALTORS® at www.har.com.
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.
