Houston Real Estate Market Update | 2024 Outlook

As we step into 2024, the outlook for the Houston housing market is one of optimism and resilience.   The following will give you an overview of where we came from, where we are, and hopefully a few clues as to where we are going! 

Coming from the headlines of 2023, it is important to remember the following highlights: 

• Many headlines focus on the market being down and refer to total sales volume.  The single-family median sales price ($330,000) and average sales price ($407,817) have remained stable year over year. 
• The inventory of properties sits at 3.5 months, slightly below that of a balanced market at 4-6 months. 
• Mortgage interest rates are forecasted to continue to improve throughout 2024.  

Houston's housing inventory, a critical indicator of market health, has increased to a 3.5-month supply¹. This increase in inventory suggests a more balanced market, offering more choices to potential buyers while still being advantageous for sellers.  The bottom line is inventory will probably increase year-over-year in 2024. However, it seems unlikely that inventory will be back up to the 2019 levels. If inventory remains the same or increases slightly our prices should remain stable. 

An important factor influencing the housing market is the anticipated decrease in mortgage rates. 30-year mortgage rates were at 6.78% on January 10th, down from just over 8% on October 19th - the highest 30-year fixed rate in 23 years. A year ago, 30-year mortgage rates were at 6.21%.  This expected drop in rates could further enhance the affordability of homes, making it a more opportune time for homebuyers to enter the market. These somewhat lower mortgage rates - and time - will likely be a primary factor in more new listings in 2024. Still, mortgage rates will remain above the pandemic lows, and therefore it is unlikely to see a major increase in inventory. 

Houston's ongoing infrastructure improvements are expected to have a positive long-term impact on real estate values. These developments, along with the city's robust job market and high quality of life, continue to attract individuals and families, thereby driving the demand for housing.  In fact, the National Association of Realtors (NAR) ranked Houston #6 in markets to watch in 2024 based on evaluations including the largest pool of potential home buyers, the greatest likelihood for home price appreciation and more. 

2024 stands as a promising landscape for buyers and sellers. There is a diverse range of opportunities, and we are here to help you meet your goals. Reach out to us for more information and follow us on social to stay informed about more trends throughout the year. 

1 The National Association of Realtors (NAR) considers inventory between 4-6 months to be a balanced market where neither a buyer nor seller has an advantage.