More homes on market in Houston despite falling home sales in July

Data released Aug. 9 shows more homes are on the market for sale in Houston—the highest level of inventory since May 2020—according to the Houston Association of Realtors.

The overview

July marked the 16th consecutive month of declining home sales in Houston, but HAR Chair Cathy Trevino said the market is returning to a more normal state.

“Each passing month has moved the Houston housing market closer to what we consider normal with seasonal influences,” Trevino said. “Consumers are still understandably taking a cautious approach to the homebuying process, and many are ultimately choosing to rent.”

The details

• In July, single-family home sales saw their slowest decline in over a year, dropping by 8.5% year over year to 7,557 units sold, marking the lowest decrease since a 7.6% drop in June 2022, according to the report.
• The average home price increased year over year by 0.6% to $428,140.
• The median price dropped by 2.3% to $340,000, according to the release.
• The supply of homes increased to 3.2 months, the highest level since May 2020, indicating a higher availability of properties. According to the HAR, supply of four to six months has been regarded as a balanced market, where neither buyers nor sellers hold an advantage.
• Rentals of single-family homes and townhomes/condominiums increased in sales, according to the report, as pending sales were up by 12.1%.

In other news

• Townhouses and condominiums faced their 14th consecutive monthly decline with a 9.8% year-over-year drop in closed sales.
• The average price increased by 2.1% to $263,876.
• The median price decreased by 2.2% to $220,000.
• Inventory expanded from a 1.9-month supply to 2.9 months, reaching its highest level since February 2021.