HOUSTON – (Realty News Report) – Houston’s single-family home sales ticked up in 2024 as 85,163 houses were sold – the fifth best year in the history of Houston real estate, the Houston Association of Realtors reported Wednesday.
Last year’s sales were 1.3% higher than the 84,038 homes sold in 2023, HAR said.
The all-time record for home sales was set three years ago when mortgage rates were exceptionally low. According to HAR, 106,756 homes were sold in 2021 when the housing market was also impacted by the Covid epidemic.
Mortgage rates remained over 6.5 percent for much of 2024, keeping homebuying unattainable for many would-be buyers.
But Houston homes sales were strong in December, offering a fairly positive outlook at the beginning of the new year.
“Following two years of declining sales, 2024 brought a welcomed balance to the Houston housing market,” said HAR Chair Shae Cottar with LPT Realty. “While higher mortgage rates presented financial challenges for some consumers, the Houston market weathered these rate fluctuations better than many other regions across the country. I believe that the strong sales activity and expansive inventory we experienced in 2024 bodes well for home buyers and sellers in 2025.”
Houston recorded 7,162 single-family home sales in December, a 16 percent gain over the 6,160 sold in December of 2023
Pending home sales, an indicator of future results, offered additional promise for the beginning of this year as former president Donald Trump takes office. HAR reported Houston’s pending sales were up 12.7 percent in December 2024, over the pending sales in 2023.
Record Home Prices
The modest gains in Houston’s housing market were achieved despite rising home prices
Home prices reached record highs in 2024. In July, the average home price hit a record $443,362, topping the previous record just two months earlier when the price was $441,162. Home prices have eased since then to $425,150 in December. On a year-to-date basis, the average single-family home price increased 2.5 percent to $422,590 while the median price rose 1.5 percent to $335,000.
The inventory of homes for-sale has grown somewhat. At year-end, there was a four-month supply of houses on the market. Some 45,714 homes were listed in December, up 21.6 percent over the 37,606 homes on the market in December of 2023.
Many homebuyers have turned to builders, which have been offering mortgage buy-downs to make homes more affordable.
National Outlook
The worst of the affordability challenges are over as more inventory, stable mortgage rates and continued job and income growth pave the way for more Americans to achieve homeownership,” said Lawrence Yun, chief economist of the National Association of Realtors in a mid-December NAR forecast webinar. “Home buyers will have more success next year (in 2025).”
Jan. 8, 2025 Realty News Report Copyright 2025
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File: 2024 was Fifth-Best Year in Houston Real Estate History
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