Inventory of single-family homes reaches pre-pandemic levels

Warmer weather and a shift in market dynamics brought a welcome change to the Houston housing market in April. While the spring homebuying season initially saw a sluggish start, home sales rebounded and inventory expanded to pre-pandemic levels, offering opportunities for buyers and sellers.
According to the Houston Association of Realtors’ (HAR) April 2024 Market Update, single-family home sales across the Greater Houston area rose 9.2 percent. The Houston Multiple Listing Service (MLS) recorded sales of 7,926 units compared to 7,256 in April 2023. Months supply of homes climbed from 2.6 to 3.7, which is the highest since October 2019 when there was a 3.8-months supply.
All housing segments saw an increase in sales in April with the high end of the market enjoying the strongest performance. Home sales in the luxury segment ($1 million+), which represents just 4.8 percent of all homes on the market, surged 33.8 percent. HAR will publish its April 2024 Rental Home Update on Wednesday, May 15.
“The spring homebuying season seems to be blossoming later than usual this year,” said HAR Chair Thomas Mouton with Century 21 Exclusive Properties. “While elevated interest rates continue to be a factor, the rebound in April home sales shows buyers are adapting to the new market realities, and sellers are finding opportunities as inventory levels rise.”
The average price of a single-family home throughout Greater Houston rose 4.6 percent to $437,198, which is the second highest price behind May 2022 when it reached a record $438,350. The median price increased 3.0 percent to $340,000.

April Monthly Market Comparison

After a slow start to the spring homebuying season, single-family home sales rebounded in April with sales climbing 9.2 percent year-over-year and inventory reaching the highest levels since before the pandemic in 2019.
In addition to the increase in single-family sales volume, total property sales were up 8.7 percent and total dollar volume increased 13.8 percent from $3.5 billion to $4 billion. Single-family pending sales rose 10.3 percent. Active listings, or the total number of available properties, were 32.3 percent ahead of April 2023.
Months of inventory expanded from a 2.6-months supply last April to 3.7 months, which is the highest since October 2019 when there was a 3.8-months supply. Housing inventory nationally stands at a 3.2-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-month supply is generally considered a “balanced market” in which neither buyer nor seller has an advantage.

Single-Family Homes Update

In April, single-family home sales experienced only the fourth increase in the past 12 months, climbing 9.2 percent year-over-year with a total of 7,926 units sold across the Greater Houston area compared to 7,256 in April of last year. The average price rose 4.6 percent to $437,198 while the median price rose 3.0 percent to $340,000.
Days on Market, or the actual time it took to sell a home, decreased from 56 to 49 days. Months of inventory increased to a 3.7-months supply compared to 2.6 months a year earlier. The current national supply stands at 3.2 months, as reported by NAR.
Broken out by housing segment, April sales performed as follows:
  • $1 – $99,999: increased 24.3 percent
  • $100,000 – $149,999: increased 20.9 percent
  • $150,000 – $249,999: increased 2.2 percent
  • $250,000 – $499,999: increased 6.1 percent
  • $500,000 – $999,999: increased 14.0 percent
  • $1M and above: increased 33.8 percent
HAR also breaks out sales figures for existing single-family homes. Existing home sales totaled 5,753 in April, up 9.7 percent from the same month last year. The average price rose 6.8 percent to $442,773 and the median sales price rose 6.1 percent to $339,500.

For HAR’s Monthly Activity Snapshot (MAS) of the April 2024 trends, please click HERE to access a downloadable PDF file.

Townhouse/Condominium Update

In April, the inventory of townhomes and condominiums hit the highest level in more than four years. Inventory grew from a 2.3-months supply to 4.5 months, which is the highest since October 2019.
Sales of townhomes and condominiums saw a moderate decline in April. Sales fell 1.3 percent year-over-year with 537 closed sales compared to 544 a year earlier. The average price of townhomes and condominiums declined 0.5 percent to $278,048 while the median price declined 1.8 percent to $230,000.

Houston Real Estate Highlights in April

  • Single-family home sales rose 9.2 percent year-over-year;
  • Days on Market (DOM) for single-family homes went from 56 to 49 days;
  • Total property sales rose 8.7 percent with 9,611 units sold;
  • Total dollar volume was up 13.8 percent to $4 billion;
  • The single-family median price rose 3.0 percent to $340,000;
  • The single-family average price rose 4.6 percent to $437,198;
  • Single-family home months of inventory registered a 3.7-months supply, up from 2.6 months a year earlier;
  • Townhome/condominium sales continued to decline, falling 1.3 percent, with the median price down 1.8 percent to $230,000 and the average price down 0.5 percent to $278,048.