The HAR's June market update reveals single-family home sales were down 12.8% compared to June 2022 with 8,582 units sold. Despite the decline, sales were up 3.9% compared to June 2019. Further, the supply of homes on the market increased to 3.1 months, the highest since June 2020.

HAR Chair Cathy Trevino said understanding the sales trends compared to prepandemic numbers is crucial to grasping the true state of the market.

“When comparing it to the same time last year, we're seeing a decline,” Trevino said in the report. “But when you compare it to prepandemic numbers, specifically 2019, the market is actually up. It's important to consider this perspective for a more accurate assessment.”

Total property sales experienced a decline of 13.7% year over year in June with 10,382 units sold, according to the report. In addition, the median price for single-family homes decreased 2.5% from June 2022 to June 2023 to $345,000, while the average price fell by 0.5% to $431,092.

Furthermore, the single-family home months of inventory rose to a 3.1-month supply, up from 1.9 months compared to the previous year—marking the largest supply in three years.

While some areas in northwest Houston are witnessing home price declines of approximately 1%-3%, others continue to hold steady or even exhibit incremental growth, Trevino said in the report.

“Houston offers a wide range of choices for buyers,” Trevino said. “Increased inventory has provided them with more options. However, sellers should be prepared for increased competition, which may lead to slightly longer days on the market.”

Further, Trevino said rising interest rates have made homebuyers be more cautious.

“Buyers are carefully assessing the current interest rates, as they have risen compared to the previous year,” Trevino said. “This has led to a more cautious approach among buyers, as they weigh affordability against the potential for further rate adjustments.”

Looking ahead, Trevino said there are uncertainties surrounding the market but expressed optimism.

"The market will likely continue along similar lines for the remainder of the year," she said. “The trajectory will depend on factors such as the Federal Reserve's decisions on interest rates and the overall state of the economy. However, Houston's market is well-positioned, and any potential declines would be gradual rather than drastic.”