October 2024 Houston Real Estate Market Update

Source: Keller Williams Memorial Agent Metrics

As we move into the final quarter of 2024, the Houston real estate market is sending mixed signals. While home prices have slightly dipped, inventory levels are on the rise, and homes are sitting on the market longer. These shifts leave both buyers and sellers wondering: Is now the right time to make a move, or should you wait for a more definitive trend?

In this update, we’ll dive into the key data for October 2024, breaking down what it means for those looking to buy or sell. Whether you're trying to capitalise on increased inventory as a buyer or navigating longer selling times, this update will help guide your next steps.

Market Overview: October 2024 by the Numbers

Here’s a quick look at the key metrics shaping the Houston market this month:

Average Sales Price: $458,902 (2024) vs. $462,121 (2023) – a 0.7% decrease.
Median Sales Price: $327,190 (2024) vs. $325,000 (2023) – a 0.7% increase.
Average Days on Market: 39 days (2024) vs. 32 days (2023) – a 7-day increase.
Home Sales Volume: 3,598 homes sold (2024) vs. 2,884 homes sold (2023).
Inventory Levels: 10,848 homes (2024) vs. 8,836 homes (2023) – a 22.8% increase.

Now, let’s break down what these numbers mean for you as a buyer or seller.

Home Prices: Slight Dip or Something Bigger?

One of the more interesting trends for October is the slight decrease in the average sales price, down by 0.7% compared to last year. At the same time, the median sales price has actually seen a slight increase of 0.7%, showing that while some price segments are softening, others are holding steady or even growing.

What does this mean?

For buyers, this slight drop in the average price could signal more negotiation power, especially in higher-end segments of the market where price dips may be more noticeable.
For sellers, the increase in the median price suggests there is still strong demand in the mid-range housing market, though they may need to adjust their expectations in higher price brackets.

Inventory: Rising Supply Offers Opportunities for Buyers

One of the most significant changes this month is the 22.8% increase in inventory. More homes are available on the market than last year, with 10,848 homes currently listed compared to 8,836 in October 2023. For buyers, this means more options and potentially less competition when house hunting.

What does this mean for you?

For buyers, the rise in inventory could work in your favour. With more homes to choose from and fewer bidding wars, you have more room to negotiate on price and potentially score a better deal.
For sellers, more homes on the market means stiffer competition. To attract buyers, you may need to price your home more competitively and ensure it stands out in terms of presentation and condition.

Days on Market: Homes Are Sitting Longer

Another notable trend is that homes are staying on the market longer, with the average days on market increasing to 39 days, up from 32 days last year. This means homes are taking about a week longer to sell, a signal that buyers may be becoming more cautious or that they have more choices due to the rising inventory.

What should you do about it?

For sellers, this means that patience is key. If your home isn’t moving as quickly as you’d hoped, consider making small improvements, staging the home more effectively, or even adjusting your price slightly to attract more interest.
For buyers, the longer selling times give you more breathing room. There’s less pressure to make quick decisions, allowing you to take your time when considering offers and negotiating terms.

Home Sales Volume: Buyer Interest Remains Strong

Despite these changes, home sales volume continues to show solid growth, with 3,598 homes sold in October 2024, compared to 2,884 homes in October 2023. This 24.7% increase in sales volume suggests that while homes may be taking longer to sell, buyer interest remains high. It’s clear that buyers are still active in the market, particularly as they take advantage of the rising inventory and slight price adjustments.

What does this mean for you?

For sellers, it’s encouraging to know that there are still plenty of buyers in the market, even if your home takes a little longer to sell. Buyers are clearly still interested in purchasing homes, especially if they’re priced competitively and presented well.
For buyers, this shows that demand is still solid, so if you see a home you love, it’s important to act strategically. While the market may offer more opportunities for negotiation, it’s important to move forward with purpose, especially in high-demand areas.

Is It Time to Buy or Sell?

The October 2024 real estate market in Houston presents a unique set of circumstances for both buyers and sellers. With a slight decrease in average prices, a sharp rise in inventory, and longer selling times, it’s a market in transition.

For buyers, the increased inventory and slight price dip present an excellent opportunity to find your dream home with more negotiating power. With more options available and homes sitting on the market longer, you have the upper hand in many situations.

For sellers, while homes may take a little longer to sell, the steady increase in sales volume shows there is still strong demand. Pricing your home competitively and ensuring it stands out will help you sell in a market that is seeing more competition among listings.

If you’re unsure whether now is the right time for you to buy or sell, connect with us and we'll guide you based on the latest trends and your unique situation. The key to success in this market is being well-informed and strategic in your approach.

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