Houston Real Estate Market Update: December 2024

As we close out 2024, Houston’s real estate market shows steady growth and trends that are important for buyers and sellers to understand. Whether you’re thinking about making a move now or planning for 2025, this update provides key insights to help you make informed decisions.

Houston Real Estate Market Data: November 2024 vs 2023

Metric	2024	2023	Change	Percentage Change
Average Sales Price	$485,418	$466,074	+$19,344	+4.2%
Median Sales Price	$325,000	$320,000	+$5,000	+1.6%
Average Days on Market	39 days	36 days	+3 days	+8.3%
Home Sale Volume	3,275 homes	2,760 homes	+515 homes	+18.7%
Inventory Levels	10,573 homes	8,970 homes	+1,603 homes	+17.9%

Key Trends and What They Mean

1. Steady Growth in Home Prices

The average sales price rose by 4.2% to $485,418, and the median sales price increased by 1.6% to $325,000. While these increases show ongoing appreciation, the pace of growth has moderated compared to the rapid spikes of past years.

For Buyers: Prices are still climbing, but at a manageable rate. Acting sooner rather than later may help secure a better deal before prices rise further.
For Sellers: Rising prices present a great opportunity to maximise returns, especially if your home is competitively priced and well-prepared for the market.

2. Expanding Inventory Brings Opportunities

Inventory levels increased by 17.9%, reaching 10,573 homes on the market. This rise gives buyers more options, reducing competition for properties.

For Buyers: With more homes available, you have more time to weigh your options and negotiate terms.
For Sellers: Higher inventory means more competition, so focus on pricing your home strategically and ensuring it stands out with excellent presentation and marketing.

3. Homes Are Spending More Time on the Market

The average days on market increased by three days, rising from 36 days in December 2023 to 39 days this year. This reflects the increased inventory, giving buyers more time to make decisions while sellers face slightly longer timelines to close deals.

Tip for Sellers: Highlight your home’s unique features, price it appropriately, and consider offering incentives like helping with closing costs to attract buyers.

4. Increased Sales Volume Reflects Demand

December 2024 saw a 1.7% increase in home sale volume, with 3,275 homes sold compared to 2,760 last year. This growth indicates that, despite the higher inventory and longer selling times, the market remains active with steady demand.

2025 Market Outlook

As the market transitions into 2025, expect:

Gradual Rate Declines: Experts project mortgage rates will ease, creating more opportunities for buyers.
Continued Inventory Growth: Buyers will benefit from increasing options, while sellers should stay competitive.
Moderate Price Appreciation: Price increases are likely to stabilise, offering more predictability for buyers and sellers alike.

Advice for Buyers and Sellers

For Buyers:
- Act Early: Securing a home now could save you from higher prices in the future.
- Leverage Options: Use the rising inventory to explore properties that match your needs without feeling rushed.
For Sellers:
- Focus on Presentation: Well-staged, move-in-ready homes will attract more attention in a competitive market.
- Work with an Expert: A local agent can help you navigate pricing, marketing, and negotiations effectively.

The December 2024 Houston real estate market presents opportunities for both buyers and sellers. With steady price growth, rising inventory, and active sales volume, the market is balancing in ways that can benefit all parties. Whether you’re buying, selling, or investing, now is the time to plan your strategy.

Ready to make your move? Contact me today for expert guidance on navigating Houston’s dynamic market. Let’s turn your real estate goals into reality!