October marked the 19th consecutive month of decreasing home sales in the Greater Houston area, with a 4.3% decline in property sales year over year, according to the October 2023 Market Update from the Houston Association of Realtors.

The real estate market in Houston continues to be affected by high mortgage rates, leading consumers to shift toward the rental sector, according to the report.

The details

Although October saw a decline in home sales, it represents the smallest monthly volume decline of 2023, according to the report.

Single-family home sales across Greater Houston decreased by 3.4% in October year over year.

Average home price increased by 0.4% to $403,556 year over year.

Median home price declined by 0.9% to $327,000 year over year.

Pending sales were up 11% to 6,669 year over year.

What else?

The townhouse and condominium market saw a decline in sales for the 17th consecutive month in October, according to the report.

Sales volume for townhouses and condominiums fell by 16.4% year over year, with 453 sales.

The average price for townhouses and condominiums increased by 1.2% to $272,597.

The median price for this segment rose by 6.6% to $239,900.

What they’re saying

HAR Chair Cathy Trevino said she expects the trends of slower home sales and an increase in the rental market will continue for the rest of the year.

“Housing inventory has grown steadily in recent months, and pricing has moderated,” Trevino said in the report. “Any notable decline in mortgage rates will likely spark renewed interest in home buying, but only the [federal government] can control whether that happens.”