2024 Houston Real Estate Market Recap: Equity Wins, Market Timing, and More Home Choices
What Happened in the Houston Housing Market in 2024?
Just like a good Netflix series, this market kept everyone guessing but delivered a satisfying finale for those ready to act.
2024 was a year of resilience and balance for the Houston real estate market. While fluctuating mortgage rates kept some buyers and sellers on their toes, the market delivered solid gains in home prices, homes are taking slightly longer to sell, and expanding inventory creating more options for buyers!
Ready to Dive into Houston Real Estate Insights?
Ready to discover how Houston’s real estate market delivered equity gains, balanced opportunities, and exciting trends for buyers and sellers alike? Let’s dive in to uncover the insights into:
- Houston’s 2024 housing market performance: Learn how prices, sales, and inventory changed.
- Key suburban market trends: See how Katy, Fulshear, Cypress, and Richmond fared.
- What this means for you: Find out why these trends matter whether you’re buying or selling.
Want the 1-minute highlights?
Greater Houston Market Overview
How Did Houston’s Housing Market Perform in 2024?
Despite mortgage rate volatility, the Greater Houston market showed impressive stability and modest growth:
- Single-family home sales rose by 1.3%, totaling 85,163 units sold.
- Total dollar volume climbed 3.1%, reaching $41.1 billion.
- Average home prices increased by 2.5%, reaching $423K, with two new all-time highs set during the year—July’s record of $443K and May’s previous record of $441K.
- Inventory expanded to a 4-months supply, the highest level since 2012. This means buyers now have more options to choose from, while sellers face increased competition and need to ensure their homes are properly prepped to stand out in the market.
Breaking Down the Market Metrics Across Houston and Suburbs
What Do 2024 Housing Stats Mean for Your Real Estate Plans in the Houston, Katy, and Fulshear areas?
Let’s dive into the numbers that defined the year and see how Houston and its most sought-after suburban markets—Katy, Fulshear, Cypress, and Richmond—performed.
Here’s a closer look at the numbers that mattered most to buyers and sellers in 2024...
1. Home Prices and Equity Changes in Houston’s Top Suburbs:
Are Home Prices in Houston, Katy, and Fulshear Rising or Falling?
2024 was another strong year for home values, with solid equity gains across the board:
- Greater Houston: $423K average price, +$99K in 5-year equity (+30% increase).
- Katy: $546K average price, +$170K in 5-year equity (+45% increase).
- Fulshear: $483K average price, +$113K in 5-year equity (+31% increase).
- Cypress: $493K average price, +$145K in 5-year equity (+42% increase).
- Richmond: $465K average price, +$145K in 5-year equity (+46% increase).
These equity gains aren’t just numbers—they represent opportunities for homeowners to leverage significant value from their properties. Take a closer look at the 5-year equity trends in the graph below to see how these areas stack up.
Why it matters:
-
Sellers: Your investment has grown significantly, offering an excellent opportunity to sell profitably and use your massive gains as a larger down payment on your next home!
-
Buyers: Understanding these historical trends can help you feel confident about investing in these areas.
Curious to see if your home has doubled in value over the past five years? Contact me at 832.594.1265 or [email protected] to find out.
2. Days on Market (How Quickly Homes Sell)
How Fast Are Homes Selling in Houston, Katy, and Richmond?
If you are thinking about selling your home, you likely want to know how long it will be on the market, am I right? Homes in Houston and its suburbs took longer to sell in 2024 compared to recent years, reflecting a shift toward a more typical market with buyers taking more time to make decisions and sellers facing increased competition.
- Greater Houston: 73 days
- Katy: 45 days (fastest turnover, reflecting high demand).
- Fulshear: 78 days (slightly slower but consistent activity).
- Cypress: 71 days (steady pace with strong demand).
- Richmond: 59 days (short sales cycle, great for sellers).
Why it matters:
-
Buyers: Great news! Buyers can take the time to adjust their pace, taking time to ensure their home buying decisions aligns with their goals.
-
Sellers: With homes taking longer to sell, you need to make sure that you have properly prepped your home to hit the market.
If you are wondering exactly what you need to do, but don’t know where to start… You are in luck! Email me at [email protected] for my Selling Smart Home Prep guide, breaking down the expert home prep and staging secrets to sell quicker and maximize your profit!
3. Sold Price/List Price Ratio (Negotiation Room)
How Close to Asking Price Are Homes Selling in Houston and Katy?
Houston’s market remained competitive, with most homes selling close to their list price:
- Greater Houston: 98.4% of list price.
- Katy: 98.6% (highest in the region).
- Fulshear: 98.3%
- Cypress: 98.2%.
- Richmond: 98% (most negotiation room for buyers).
Why it matters:
-
Sellers: Pricing your home right is critical to achieving near-list-price sales.
-
Buyers: While negotiation room is limited, there is wiggle room!
Houston Market Takeaways
What Are the Key Takeaways from Houston’s 2024 Housing Market?
The Houston market overcame the challenges of higher mortgage rates and a slower spring season, rebounding strongly in the fall thanks to expanded inventory and Federal Reserve rate cuts:
- Luxury home sales surged by 64.6%, highlighting buyer confidence at the high end of the market.
- Average prices peaked at $443K in July before settling to $425K in December, consistent with seasonal trends.
- Inventory grew to a 4-months supply, providing more options for buyers and leveling the playing field for sellers.
Is now a good time to sell of buy a home in the Houston and Katy areas?
What Do Houston’s 2024 Housing Market Trends Mean for You?
Sellers:
- Massive Profits: The substantial equity gains over the past five years position you for significant profits.
- Prime Time to Sell: Rising prices and high demand make this a great time to sell, especially in Katy and Richmond, where homes sell quickly and close to the list price.
- Increased Competition: The substantial increase in the number of available homes on the market means that it’s crucial to take the time to strategically prep and stage your home if you want to ensure you sell at the highest possible price in the least amount of time.
Buyers:
- More Homes to Choose From: Expanded inventory offers more choices, especially in Cypress and Fulshear, where homes spend slightly longer on the market.
- No Need to Rush: With homes taking longer to sell, you now have the time to make informed decisions without the rush of previous years.
- Yes, You Can Find a Deal: Even though home prices are at record highs and still rising, there are still deals in this market. You just have to know how to look for them, and that starts with choosing an experienced Realtor who is an expert in your local market!
The 2024 Houston real estate market delivered a story of resilience, balance, and opportunity. Whether you’re considering buying, selling, or simply exploring your options, let’s strategize together to achieve your real estate goals.
📲 Ready to take the next step? Reach out today for a personalized market analysis and expert guidance tailored to your needs.
