HCAD Chief Appraiser Roland Altinger said in a news release the Harris County housing market took a “breather this year” after several years in a row of rapid appreciation. Sales slowed in 2023, and prices rose slightly because of higher interest rates and mortgage rates, which Altinger said allowed home inventory to inch upward.
“This year we are seeing a return to the usual increases and decreases in property values instead of the extraordinary growth of the past two years,” Altinger said.
Residential properties have gone up an average of about 2.5% in value countywide when comparing values from Jan. 1, 2024, with those from Jan. 1, 2023, Altinger said. In submarkets covering the the Heights-River Oaks-Montrose area, values rose between 2% and 8% on average.
Total single-family homes sold in Harris County
2022: 95,302
2023: 83,854
Median price of homes sold in Harris County
2022: $338,295
2023: $330,000
Months’ supply of homes
January 2022: 1.3
January 2023: 2.6
January 2024: 3.3
Harris County homes in the lower price ranges were more likely to see value decreases between 2023 and 2024.
For homes valued between $200,000-$299,999:
- 57.5% decreased in value
- 28.8% increased in value
- 13.6% saw no change in value
- 52.7% decreased in value
- 37.4% increased in value
- 9.9% saw no change in value
- 34.1% decreased in value
- 58.1% increased in value
- 7.8% saw no change in value
- 21.1% decreased in value
- 73.4% increased in value
- 5.5% saw minimal change in value
In addition to the slowdown in property value increases, one 2023 change in state law also lowered property tax rates for school districts. The changes came after Texas voters approved Proposition 4 in the November 2023 election.
Proposition 4 was placed on ballots following the passage of Senate Bill 2, authored by State Sen. Paul Bettencourt, R-Houston, during the 2023 Texas Legislature. The changes went into effect for 2023 tax bills, and Bettencourt’s office estimated the average Texan homeowner’s tax bill was lowered by $1,260 that year.
Following the passage of Proposition 4:
- The state of Texas set aside $12.7 billion for school districts to allow them to lower tax rates by 10.7 cents per $100 of valuation.
- $5.6 billion went toward increasing the statewide homestead exemption from $40,000 to $100,000.
The deadline for homeowners to apply for property tax exemptions passed April 30. Meanwhile, the deadline to file a protest against a home value was May 15, or within 30 days of receiving a property value notice being mailed.
However, county officials said property owners should take note of several other upcoming dates related to when tax rates are set and when bills will be mailed out.
August-October: Local jurisdictions adopt tax rates
October/November: Tax bills are mailed
Dec. 31: Last day to pay to use a deduction for the same year’s federal income tax