After two years of decline, the Houston housing market showed signs of recovery in 2024. Homebuyers remained active despite fluctuating mortgage rates and rising home prices, keeping both the resale and rental markets strong. As 2025 begins, steady demand and a growing inventory point to continued market growth.
Houston Real Estate Highlights for December and Full-Year 2024:
- Following two consecutive years of declines, single-family home sales rebounded in 2024 with 85,163 homes sold, a 1.3 percent increase compared to 84,038 in 2023.
- Total property sales for 2024 were relatively flat at 101,864 units, while total dollar volume rose by 3.1 percent, reaching $41 billion.
- December saw a 16.3 percent year-over-year increase in single-family home sales, with 7,162 units sold.
- Total property sales in December increased 13.6 percent to 8,478 units, while total dollar volume rose 20.5 percent to $3.5 billion.
- The median price of single-family homes in December edged up 1.3 percent to $334,290, while the average price increased by 5.0 percent to $425,150.
- Single-family homes saw a rise in months of inventory, expanding to a 4.0-month supply.
- The townhome/condominium market faced challenges throughout 2024. In December, townhome/condominium sales dropped 5.8 percent, although the average price rose 2.5 percent to $268,152. The median price remained largely unchanged at $234,250.
- Townhome/condominium inventory improved, rising from a 3.5-month supply to 5.4 months.
According to the Houston Association of Realtors’ (HAR) December/Full-Year 2024 Housing Market Update, the market showed resilience despite challenges. “After two years of declining sales, 2024 brought much-needed stability to the Houston housing market,” said HAR Chair Shae Cottar of LPT Realty. “While higher mortgage rates posed challenges for some buyers, the Houston market weathered these fluctuations better than many other regions across the country. The strong sales and growing inventory we saw in 2024 provide a positive outlook for both buyers and sellers heading into 2025.”
Houston’s rental market also performed well in 2024, with many potential homebuyers choosing to rent while waiting for mortgage rates to stabilize.