Sales fall by the smallest amount since May of 2022; prices stabilize and inventory improves
 
HOUSTON — (September 13, 2023) — Houston real estate appeared to be on approach for its own “soft landing” in August, as declining sales slowed to the lowest rate in more than a year. Despite another month of some negative indicators, the local housing market continues to demonstrate signs of a return to more seasonal trends, even as consumers maintain a wary eye on elevated interest rates and home prices. 

 
Home sales across Greater Houston were down for a 17th straight month in August, however the rate of decline was the smallest since last spring. According to the Houston Association of Realtors’ (HAR) August 2023 Market Update, single-family home sales fell 3.8 percent year-over-year with 7,983 units sold compared to 8,301 in August 2022. That is the lowest decline since sales dropped 0.8 percent in May 2022. Months supply of homes climbed to 3.3, the highest level since May 2020 when it also was 3.3. Compared to pre-pandemic August 2019, home sales were down 8.0 percent. 
The luxury housing segment 

Comprised of homes priced at $1 million and above, which represents just 3.7 percent of all homes on the market – was the only segment with a gain. Rentals of single-family homes and townhomes/condominiums remain strong. HAR will publish its August 2023 Rental Home Update next Wednesday, September 20. 
 
“While some of the August numbers for the Houston housing market were in negative territory, they are part of a gradual return to normalcy from pandemic-era trends that were unsustainable,” said HAR Chair Cathy Treviño with LPT, Realty. “We are working our way back to a better place with resale housing while continuing to see strong activity in the rental market.” 
 
Single-family home prices continue to stabilize. The average price edged up just 2.5 percent to $420,124 while the median price was statistically flat at $339,000. Those figures are well below the record highs of $438,350 (average) in May 2022 and $354,000 (median) in June 2022.