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The Houston housing market is already setting up to be radically different than last year. In early 2023, Houston's real estate sector was still recovering from the economic impacts of the pandemic. Home prices and sales activity were increasing, but at a slow and steady pace. Fast forward one year later to early 2024, and Houston's housing market looks drastically different. The market is now characterized by bidding wars, houses selling above asking price, and an ultra-low inventory of homes for sale.
Several factors have contributed to this rapid transformation. For one, mortgage rates have risen significantly from the historic lows of 2021 and early 2022. This has driven many buyers to hurry and purchase homes before rates move even higher. Many companies based in Houston have expanded operations and hiring. This influx of new residents has heightened housing demand and we see that in our internal data.
Our internal numbers in 2022 & 2023 compared:
*Includes adjustment for larger client base
Key metrics from January suggest Houston's real estate market will remain sizzling throughout 2024. This combination of strong price growth, shrinking inventory, and fast sales paints the picture of a highly competitive seller's market in Houston to begin 2024. These conditions will likely persist throughout the year without major shifts in the supply-demand balance.
Therefore, 2024 as a whole is setting up to be a big year for Houston real estate. We can expect more bidding wars, houses selling almost instantly, and large numbers of buyers competing for the homes available. Sellers will continue having the upper hand in price negotiations. Overall, Houston housing in 2024 is poised for another breakout year.
January 2024 reflects a red-hot seller's market where purchasers must act swiftly and aggressively to secure homes. The supply and demand imbalance has significantly shifted. The upward momentum that was noted in January 2024 is in line with the pattern that was seen at the end of 2023.
Based on the data, it can be observed that the pending sales index increased steadily in November and December, continuing the upward trend that began in January. These patterns point to a more dynamic market as more buyers are joining the market and sellers are starting to list their properties.
What are your thoughts on the market? What else would you like to know? Shoot us your thoughts. We plan on sending out these unique market analysis reports regularly to help our agents better grasp what's been going on and more importantly what to expect.
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