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Houston Real Estate Market Report | March 2023

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Houston Real Estate Market Report | March 2023

Hello M🍀rch!

Springtime is blooming!

March welcomes us by breathing life into the season as it brings us the Spring Equinox, St. Patricks Day, and kicks off the busiest time of the year in real estate; Spring Market!

Toddler girl smelling flowers in garden as big sister watching her.

Easing prices and expanded inventory pave the way for a promising spring homebuying season

HAR Newsroom As the Houston housing market continues to transition to pre-pandemic conditions; positive indicators are beginning to blossom.

While February sales were down year-over-year, they were up compared to the last pre-pandemic February in 2019. In addition, year-over-year pricing fell for the first time in more than two years, and more homes were listed for sale. These are among the signs that would-be homebuyers had anticipated after moving to the sidelines last year when mortgage interest rates began to rise.

According to the Houston Association of Realtors (HAR) February 2023 Market Update, single-family home sales fell 23.0 percent, with 5,723 units sold compared to 7,430 in February 2022. That marks the 11th consecutive monthly decline. However, when compared to the last February before the pandemic – February of 2019, with a sales volume of 5,339 units – sales were up 7.2 percent.

All housing segments saw year-over-year declines in February. By contrast, both single-family and townhome/condominium rentals had solid gains, with buyers pivoting to the rental market until mortgage rates ease, and inflation subsides.

Single-family home prices fell for the first time since spring 2020. The average price dropped 2.4 percent to $385,103, and the median price declined 1.6 percent to $320,000. That is in sharp contrast to when pricesreached record highs of $438,294 (average) in May 2022 and $353,995 (median) in June 2022.

If you have questions about your real estate activity in your neighborhood or making a move, please get in touch with me.

Thanks.