HAR: ‘Balance and stability’ in Houston housing market despite national, global uncertainty

The Houston housing market showed “signs of balance and stability” at the onset of the spring buying and selling season, notwithstanding political and economic uncertainty at the local, national and global level in March, the Houston Association of REALTORS® said in its latest Housing Market Update.

Single-family home sales increased 3.7% year over year in March, with 7,644 homes sold (via HAR).

Single-family home sales increased 3.7% year over year during the month, with 7,644 homes sold. Pending sales increased 12.8%, meanwhile, indicating strong sales in the coming weeks.

At the same time, the average home price decreased 1.2% to $420,510, while the median price declined 1.5% to $330,000.

“The market is in a really steady place right now,” said HAR Chair Theresa Hill. “Buyers are still active, prices are moderating and inventory is leveling out. Interest rates will be something to watch, but the market is on solid footing this spring.”

HAR Chief Economist Ted Jones added that while global uncertainty, namely surrounding the war in Iran, caused “volatility” in interest rates, affordability actually improved in Houston last month.

“Although mortgage rates have advanced slightly as inflation concerns grow, affordability in March improved compared to a year ago as the typical principal and interest payment on the median-priced home was almost $106 less,” Jones explained. “On a year-over-year basis, affordability has now improved in 17 of the past 20 months, which is great news for homebuyers.”

The typical Houston home stayed on the market for 67 days, up from 62 days a year prior.

Existing-home sales

Looking only at existing single-family homes (excluding new construction), Houston saw 5,269 closings in March, up 9.4% year over year. The average home price decreased 2.1% to $429,601, while the median decreased 1.2% to $330,000.

Townhomes and condos

Among townhomes and condos, home sales increased 1.8% year over year, with 402 properties sold. The average price declined 1.6% to $267,956, while the median price dropped 4.3% to $220,000.