2024 Houston Housing Market Recap: Resilience and Growth Lead the Way
As we step into 2025, it’s clear that the Houston housing market has rebounded strongly after two years of declining sales. Despite challenges like fluctuating mortgage rates and high home prices, buyers and sellers showed remarkable resilience, driving steady demand and fostering an environment of growth. At Jet Lending, we are thrilled to see how these trends are shaping opportunities for investors, homebuyers, and sellers alike. Here’s a detailed look at the 2024 Houston housing market and what it means for the year ahead.
A Year of Steady Growth
The Houston housing market experienced modest growth in 2024, marked by stable activity in the resale and rental markets. Single-family home sales increased by 1.3% over 2023, totaling 85,163 units sold. The luxury segment, particularly homes priced at $1 million and above, saw a remarkable surge in sales, with December activity climbing 64.6% year-over-year.
Total property sales remained statistically flat compared to 2023, but the annual dollar volume rose by 3.1%, reaching $41.1 billion. Expanding inventory levels further bolstered the market, setting the stage for continued growth in 2025.
December’s Strong Finish
The year concluded on a high note, with all market indicators in positive territory in December. Total property sales rose 13.6% year-over-year, marking the third consecutive month of increased activity. Single-family home sales saw a 16.3% rise, totaling 7,162 units sold. Active listings surged 21.6% compared to December 2023, with 45,714 properties available.
Key December Highlights:
- Median Price: Increased 1.3% to $334,290.
- Average Price: Rose 5.0% to $425,150.
- Days on Market: Extended slightly from 57 to 59 days.
- Inventory: Expanded from a 3.3-months supply to 4.0 months, compared to the national average of 3.8 months.
Segment Breakdown:
- $1M and above: +64.6%
- $500,000 - $999,999: +18.2%
- $250,000 - $499,999: +14.8%
- $150,000 - $249,999: +17.5%
- $100,000 - $149,999: +27.3%
- $1 - $99,999: Unchanged
Existing home sales totaled 4,525, a 17.6% increase year-over-year. The average price for existing homes rose by 8.6% to $431,899, while the median price increased 4.2% to $325,000.
Inventory Growth and a Balanced Market
Expanding inventory played a significant role in driving the Houston market forward. At the start of 2024, inventory stood at 3.2 months of supply. By August through November, it had grown to 4.4 months, the highest level since September 2012. December closed with a 4.0-months supply, a level traditionally considered balanced, giving neither buyers nor sellers a distinct advantage.
Price Trends
2024 saw record-high home prices mid-year. The average price peaked at $443,362 in July, before easing to $425,150 by December. On a year-to-date basis, the average single-family home price increased by 2.5% to $422,590, while the median price rose by 1.5% to $335,000.
Resilience Amid Mortgage Rate Volatility
While fluctuating mortgage rates created challenges for some buyers, Houston weathered these pressures better than many other regions. Rates eased from a 20-year high of 8% in 2023 to the high-6% and 7% range by late 2024. Three Federal Reserve rate cuts, starting in September, boosted buyer confidence, even though the cuts did not significantly lower rates.
A Thriving Rental Market
The rental market remained robust in 2024, as many prospective buyers waited for mortgage rates to stabilize. HAR will release detailed rental trends in January 2025, offering more insights into this critical aspect of the market.
Why Choose Jet Lending for Your Next Investment?
The 2024 market demonstrated resilience and adaptability, with rising sales across most segments, expanding inventory, and stable demand. This creates an unparalleled opportunity for real estate investors to thrive in 2025. Whether you’re flipping homes, building rental portfolios, or venturing into luxury properties, Jet Lending is here to make your investment goals a reality.
At Jet Lending, we offer competitive loan options tailored to your needs, fast approvals, and unparalleled expertise in the Houston market. Don’t let high prices or mortgage rate fluctuations hold you back—our flexible lending solutions empower you to seize the best opportunities.
Looking Ahead
2025 is shaping up to be a promising year for the Houston housing market, and Jet Lending is excited to be part of your journey. Let’s capitalize on these market trends together. Contact Jet Lending today to learn how we can help you secure the financing you need to achieve your real estate investment goals!
