Houston Housing Market Holds Strong Through October 2024, Defying Rising Mortgage Rates
Overview of October 2024 Market Activity
Despite a recent uptick in mortgage rates, Houston's housing market continues to thrive, showing robust activity as we move into the final quarter of 2024. October marked a noticeable rise in both home sales and available inventory, setting the stage for a busy season ahead.
According to the Houston Association of Realtors (HAR), single-family home sales across the Greater Houston area surged by 12.8% year-over-year. This translates to 7,185 homes sold in October 2024, compared to 6,372 sales in October 2023. In a city like Houston, where buying and selling homes can be impacted by everything from interest rates to hurricanes, seeing these numbers grow is a positive indicator for both buyers and sellers.
Rising Home Prices
Average Price: $423,166 (up 5.2%)
Median Price: $334,900 (up 2.7%)
These increases may feel steep, but Houston’s pricing remains more affordable than other big Texas markets like Austin or Dallas, giving buyers more room to maneuver.
Here’s a quick table for a snapshot comparison of 2023 vs. 2024 pricing:
| October 2023 | October 2024 | Change |
|---|---|---|
| Average Price | $402,268 | $423,166 |
| Median Price | $326,000 | $334,900 |
Spotlight on Luxury Homes: Major Growth in the $1M+ Market
Houston’s luxury real estate market ($1 million and above) is where we saw the biggest action in October. Sales in this category jumped by 33.8% compared to last year, and mid-luxury homes priced between $500,000 and $999,999 weren’t far behind, with a 25.9% increase in sales.
If you're shopping in the luxury bracket, these numbers suggest strong demand, so buyers should act quickly when a desirable property comes up. Here’s a breakdown of how each price segment performed:
| Price Range | Change in Sales Activity (Year-over-Year) |
|---|---|
| $1 million+ | +33.8% |
| $500K - $999K | +25.9% |
| $100K - $149K | -7.3% (decline) |
Rental Market Update
Rental demand for single-family homes in Houston has stayed steady through October. With rising prices for homes, many people may be leaning toward renting before committing to buy. If you’re interested in leasing a home, keep an eye on HAR’s Rental Home Update coming out on November 20, 2024. This report will offer a detailed look at rental pricing and availability in the area.
A Look at Houston’s Mortgage Rates
While mortgage rates have edged higher recently, they’re still significantly lower than peak levels seen last year. This favorable rate environment helps keep buyer interest high, and Houston’s diverse job market continues to attract newcomers.
According to HAR Chair Thomas Mouton, “This more favorable rate environment is helping sustain buyer demand and driving continued activity in the Houston housing market as we enter the final months of 2024.”
Monthly Market Comparison: October Brings Turnaround in Sales
October 2024 marked the end of a five-month decline in total property sales, with a 10.2% increase year-over-year. The total dollar volume also surged by 19.5%, reaching a hefty $3.5 billion, underscoring strong demand. Inventory levels have risen too, with 23.6% more properties available than in October 2023, giving buyers more choices and a bit more negotiating power.
Here's a summary of October's monthly market comparison:
| Category | October 2023 | October 2024 | % Change |
|---|---|---|---|
| Total Property Sales | 6,580 | 7,256 | +10.2% |
| Total Dollar Volume | $2.93B | $3.5B | +19.5% |
| Inventory Increase | - | +23.6% | - |
Call to Action: Ready to Explore Houston’s Market?
Whether you’re buying, selling, or just curious about your home’s value, Houston’s housing market offers a dynamic landscape with opportunities across every price range. If you’re interested in learning more or getting personalized assistance, reach out to Realty Raquel, your local expert on all things real estate in Houston. Let’s make your next move a smart one!
