2024 Houston Housing Market: A Year of Growth and Stability
Houston - January 15, 2025 - The Houston housing market ended 2024 on a high note after two years of declining sales. Homebuyers remained active in the resale and rental markets despite challenges like fluctuating mortgage rates and increasing home prices. With a robust inventory and strong demand, 2025 is shaping up to continue this positive trend.
Key Highlights of 2024
- Single-family home sales rose 1.3% to 85,163 units, compared to 84,038 in 2023.
- The total property sales volume for 2024 was $41.1 billion, up 3.1% from $39.8 billion the year prior.
- December saw a 16.3% increase in single-family home sales year-over-year.
- Luxury homes, priced at $1M and above, experienced a staggering 64.6% sales growth in December.
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Market Dynamic Throughout 2024
Early Challenges, Late-Year Recovery
The market faced a rocky start due to volatile mortgage rates. Spring sales were sluggish, but activity picked up in the latter half of the year, especially after the Federal Reserve implemented rate cuts in September. Although mortgage rates remained relatively high, easing from a 20-year peak of 8% in 2023 to the 6-7% range, they still provided some relief for buyers.
Inventory Expansion: A Balanced Market
Houston’s inventory grew significantly in 2024, reaching 4.4 months’ supply by November—the highest level since 2012. By December, inventory settled at 4.0 months’ supply, approaching the 4-6 months range typically considered balanced. This improved inventory gave buyers more options and reduced the fierce competition seen in previous years.
| Month | Inventory Supply |
|---|---|
| January 2024 | 3.2 months |
| November 2024 | 4.4 months |
| December 2024 | 4.0 months |
Home Prices Hit Record Highs
Houston’s housing prices reached new peaks in 2024:
- The average single-family home price climbed 2.5% year-over-year to $422,590.
- The median price rose 1.5% to $335,000.
In July, prices hit an all-time high, with the average reaching $443,362. While prices eased slightly by December, the upward trend reflects the market’s strong demand.
December 2024: A Month of Growth
December capped off the year with robust performance across most market segments:
- Single-family home sales surged 16.3%, with 7,162 units sold.
- The average home price increased 5.0% to $425,150, while the median price rose 1.3% to $334,290.
- Active listings grew 21.6%, totaling 45,714 properties.
Segment Performance
- Homes priced $1M+ led the growth, with sales up 64.6%.
- Mid-range homes ($250,000-$499,999) saw a 14.8% increase, while lower-priced homes ($100,000-$149,999) grew by 27.3%.
| Price Range | Sales Change (%) |
|---|---|
| $1 - $99,999 | 0.0% |
| $100,000 - $149,999 | +27.3% |
| $150,000 - $249,999 | +17.5% |
| $250,000 - $499,999 | +14.8% |
| $500,000 - $999,999 | +18.2% |
| $1M+ | +64.6% |
Mortgage Rate Trends in 2024
The chart above highlights the weekly fluctuations in 30-year fixed mortgage rates throughout 2024. Starting the year at a high of 7.00%, rates gradually eased into the mid-6% range by mid-year before climbing slightly in the latter months. Key turning points align with economic adjustments, including the Federal Reserve's rate cuts, which boosted buyer confidence but had minimal immediate impact on mortgage rates. Quarter-end markers provide a clear view of trends, showing how rates influenced buyer activity over time. This steady decline from 2023’s highs offered a more favorable environment for homebuyers.
Rental Market Insights
The rental market also thrived in 2024 as some prospective buyers held off on purchases due to mortgage rate uncertainties. Full details on rental trends will be available in HAR’s Rental Market Update, scheduled for release on January 15, 2025.
Townhomes and Condominiums: Mixed Results
The townhouse and condo market had a more challenging year, with sales declining for most of 2024:
- December sales fell 5.8%, with 389 units sold.
- The average price rose 2.5% to $268,152, while the median price remained flat at $234,250.
- Inventory improved significantly, growing from 3.5 months to 5.4 months’ supply.
Pro Tips for 2025 Buyers and Sellers
-
For Buyers:
- Look for opportunities in the growing inventory. A 4.0-month supply means you have more choices and less competition compared to previous years.
- Monitor mortgage rates. Even a small dip can significantly impact your budget.
-
For Sellers:
- Price competitively to attract buyers, especially in the $250,000-$499,999 range, where demand remains strong.
- Highlight your home’s unique features to stand out in a market with increasing listings.
-
For Renters:
- If buying isn’t feasible now, consider long-term rental options. Use HAR’s resources to find a property that suits your needs.
Top Real Estate Trends To Watch In 2025
2024 at a Glance: Key Figures
| Metric | 2023 | 2024 | % Change |
|---|---|---|---|
| Total Property Sales | 101,864 units | 101,864 units | 0.0% |
| Single-Family Home Sales | 84,038 units | 85,163 units | +1.3% |
| Total Dollar Volume | $39.8 billion | $41.1 billion | +3.1% |
| Median Single-Family Price | $330,000 | $335,000 | +1.5% |
| Average Single-Family Price | $412,500 | $422,590 | +2.5% |
Conclusion
The Houston housing market demonstrated resilience and growth in December 2024, setting a positive tone for the new year. Both buyers and sellers can find opportunities in this evolving landscape.
Ready to make your move in 2025? Whether you’re buying, selling, or renting, Realty Raquel can help you navigate the Houston market. Contact us today for expert guidance and personalized solutions. Don’t miss out on your dream home or investment opportunity!
Data Source: Houston Association of Realtors (HAR) Monthly Housing Update
