Single-family housing drops 12% in Houston going into 2024

For the second consecutive year, the Houston housing market faced challenges influenced by a nationwide downturn in the economy, the Houston Association of Realtors reported in a December market update released on Jan. 10.

By the numbers

• Single-family home sales for 2023 totaled 83,854 units, experiencing a 12% decrease compared to the figures recorded in the previous year.
• The comprehensive data indicates that total property sales in 2023 amounted to 102,367 units, reflecting a 13% decrease year over year.
• The total value of real estate transactions for 2023 reached $40 billion, marking a 12.6% decrease compared to the 2022 total of $45.6 billion.
• The average price for single-family homes remained consistent at $408,000, showing no significant change year over year.
• The median price for single-family homes in December stood at $330,000, demonstrating stability with no change compared to the previous year.

On the other hand

Within the townhome and condominium market, sales totaled 411 units for the month of December, reflecting a 7% decrease year over year.

The average price increased by 6.7% to $258,137 year over year and the median price increased 9.3% year over year, reaching $235,000.

What they're saying

“We believe that home sales will pick up once consumer confidence is restored," HAR Chair Thomas Mouton said in the report. "Depends on what the Federal Reserve does with interest rates and evidence that inflation is no longer a threat."

Mouton says he expects an increase in home sales in 2024 due to the large housing inventory and stabilized pricing observed in 2023.