Houston Home Sales Down in March as Prices, Inventory Increase

As the warmth of spring settles over Houston, its housing market is settling into old habits.

Despite a robust start to the year and increasing prices signaling signs of a resi revival, March brought a downturn in the housing sector, according to the Houston Association of Realtors.

Greater Houston witnessed a 7.5 percent decrease in single-family home sales year-over-year. Sales declined from 7,926 units sold in March 2023 to 7,334 units last month, according to HAR. Every segment of the housing market felt the slowdown, with the lower end experiencing the most significant decline, at nearly 29 percent. Sales of homes priced $1 million or more decreased less than 1 percent.

Total dollar volume decreased 5.6 percent, from $3.7 billion to $3.5 billion.

While volume is down, prices ticked upward. The average price of a single-family home in Greater Houston rose by 1.3 percent to $412,460, while the median price increased by 1.6 percent to $330,000.

March was a departure from January and February, which saw 9 and 8 percent upturns in sales activity year-over-year, respectively.

The bright spots last month include an increase in supply, with months of inventory climbing from 2.6 to 3.5. This puts Houston’s housing inventory ahead of the national average, which sits at roughly 2.9 months supply, according to the National Association of Realtors. The days it took to sell a home were also down from 62 to 55 days on market, with active listings growing 26 percent year-over-year, suggesting a shift toward a more balanced market.

The March market fluctuations reflect a “spring cleaning” of sorts, as more homeowners test the waters by listing their properties, HAR chair Thomas Mouton said. However, potential homebuyers are adopting a more cautious approach to closing sales.