Luxury segment experienced a surge in sales; average home prices hit record highs

The Greater Houston real estate market was significantly impacted by Hurricane Beryl which left more than 2.2 million households without power for days. While the storm delayed some closings, increased sales activity in the high end of the market contributed to overall single-family home sales growth in July.

According to the Houston Association of Realtors®’ (HAR) July 2024 Market Update, single-family home sales across the Greater Houston area rose 1.8 percent year-over-year. The Houston Multiple Listing Service (MLS) recorded sales of 7,635 units compared to 7,501 last July. Months supply of homes expanded from 3.1 to 4.3.

High-end market sales outpaced last July’s figures. The luxury segment ($1 million+), which represents 4.5 percent of all homes on the market, experienced a 14.2 percent increase in sales. That was followed by the segment that consisted of homes priced between $500,000 and $1 million, which rose 9.1 percent year-over-year. Sales of homes priced between $250,000 and $500,000, which makes up more than half of all homes on the market, were statistically flat. All other housing segments continued to see a slowdown in sales. HAR will publish its July 2024 Rental Home Update on Wednesday, August 21.

The average price of a single-family home climbed 4.7 percent to an all-time high of $445,440, topping the previous record in May 2024 when it was $441,641. The median price increased 2.9 percent year-over-year to $350,000.

“Despite the temporary setbacks caused by Hurricane Beryl, we expect to see transactions catch back up next month,” said HAR Chair Thomas Mouton with Century 21 Exclusive Properties. “Recent declines in mortgage rates have also given consumers a bit of renewed optimism, with some previously hesitant buyers now showing increased interest in buying a home.”

July Monthly Market Comparison

July marked the third consecutive month where total property sales declined, with sales down 2.1 percent year-over-year. Total dollar volume rose 4.4 percent to $3.8 billion. Active listings, or the total number of available properties, increased with 30.5 percent more listings for sale compared to July 2023.

Single-Family Homes Update

Despite the impacts from Hurricane Beryl, single-family home sales rebounded in July. Sales increased 1.8 percent year-over-year with a total of 7,635 units sold across the Greater Houston area compared to 7,501 last July. The average price rose 4.7 percent to $445,440, topping the previous record of $441,641 set in May of this year. The median price climbed 2.9 percent to $350,000.

Active listings were 34.2 percent above 2023 levels, with 29,642 single-family homes available in July. Days on Market, or the actual time it took to sell a home, was up from 42 to 44 days.

Months of inventory of single-family homes expanded from a 3.1-months supply last July to 4.3 months. Housing inventory nationally stands at a 4.1-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-months supply is generally considered a “balanced market” in which neither buyer nor seller has an advantage.

Broken out by housing segment, July sales performed as follows:

  • $1 – $99,999: decreased 7.3 percent
  • $100,000 – $149,999: decreased 17.9 percent
  • $150,000 – $249,999: decreased 3.7 percent
  • $250,000 – $499,999: decreased 0.2 percent
  • $500,000 – $999,999: increased 9.1 percent
  • $1M and above: increased 14.2 percent

HAR also breaks out sales figures for existing single-family homes. In July, existing home sales totaled 5,610, which is down 1.6 percent compared to the same time last year. The average price rose 8.4 percent to a record high of $459,296, and the median sales price was up 5.2 percent to an all-time high of $352,625.

For HAR’s Monthly Activity Snapshot (MAS) of the July 2024 trends, please click HERE to access a downloadable PDF file.

Townhouse/Condominium Update

The slowdown in townhome and condominium sales persisted in July. With 471 sales, the market was 19.5 percent below the 585 units sold last July. The average price of townhomes and condominiums declined 0.8 percent to $261,123 while the median price edged up 0.7 percent to $221,500.

The inventory of townhomes and condominiums expanded from a 2.8-months supply in July 2023 to 5.2 months, which is the highest since September 2012 when it was 5.3 months.

Houston Real Estate Highlights in July

  • Single-family home sales rose 1.8 percent year-over-year;
  • Days on Market (DOM) for single-family homes went from 42 to 44 days;
  • Total property sales were down 2.1 percent with 8,969 units sold;
  • Total dollar volume increased 4.4 percent to $3.8 billion;
  • The single-family median price increased 2.9 percent to $350,000;
  • The single-family average price rose 4.7 percent to a record high of $445,440;
  • Single-family home months of inventory registered a 4.3-months supply, up from 3.1 months last July;
  • Townhome/condominium sales continued to decline, falling 19.5 percent, with the median price up 0.7 percent to $221,500 and the average price declined 0.8 percent to $261,123.