Houston Real Estate Market Shifts in Favor of Buyers
The Houston area’s residential real estate market is currently favoring buyers, according to an analysis from April. Single-family homes are taking longer to sell than they did in April 2024, and the region has a higher number of months’ worth of inventory.
What Does This Mean for Buyers and Sellers?
The months-of-inventory figure estimates the number of months it will take to sell all the homes currently on the market, based on sales activity during the previous 12 months. As of April, Greater Houston had 4.9 months’ worth of inventory, which is an increase from 3.6 months at the same time last year. This is the highest number the region has seen since 2012. In contrast, Galveston is sitting on 16 months’ worth of inventory.
A Buyer’s Market
HAR Vice Chair Kat Robinson notes that the increase in months of inventory is a significant advantage for buyers. "The months of inventory was the biggest surprise, because now that we’re almost at 5 months of inventory, this is a great opportunity for buyers because we now have so many options to choose from," she said. With more homes available for purchase, buyers have the upper hand in negotiations and can potentially get discounts on sale prices.
Sales and Price Trends
The number of single-family home sales in April marked a year-over-year decrease of 1.1% in the Houston area. Overall property sales dropped by 3.5% compared to April 2024. The price of single-family homes remained flat, while the average and median prices for condominiums and townhomes declined by 4% and 6.5%, respectively.
Opportunities for Buyers
Considering the number of homes available for purchase in the Houston region, Robinson believes that sale prices could be even lower. "You have the upper hand when it comes to negotiation,” she said. “So you can get the 3-5% discount possibly and you can either get that as a credit towards closing or you can get it as a discount off the price." This means that buyers can negotiate for better prices and potentially get more value for their money.
Conclusion
In conclusion, the Houston real estate market is currently favoring buyers, with a higher number of months’ worth of inventory and a decrease in sales. Buyers have the upper hand in negotiations and can potentially get discounts on sale prices. With more homes available for purchase, buyers have a wide range of options to choose from, making it a great time to buy a home in the Houston area.
