As of April, median single-family home prices were still up 37% across the Houston area since 2020, according to HAR data.
“We do actually have new listings hitting the market, but they are selling exceptionally quickly and at some of the highest prices of all time as buyers and investors make cash offers well above asking price," HAR Chair Jennifer Wauhob said in the report.
In March, the Federal Reserve issued the first hike in interest rates after two years of historically low rates intended to drive the economy after the start of the coronavirus pandemic. Since then, interest rates have doubled in an attempt to counter inflation.
The average rent on single-family homes also rose 10.2% year over year in April as more people postpone purchasing a home, according to the report.
Inventory for single-family homes in the Houston area rose slightly to a rate of 1.4 months. The rate indicates the estimated amount of time it would take before the supply of homes in Houston is depleted. A supply rate of 6 months is considered balanced, according to the National Association of Realtors.
The drop in total home sales could be reflective of more buyers becoming aware of how competitive the market is and choosing to hold off, Wauhob said.
“Consumers have grown increasingly weary of the buying frenzy, and many are considering postponing their purchasing plans because pricing and interest rates have exceeded their reach," Wauhob said in the report.
