KEY FINDINGS
- The Houston housing market, including the Heights, has been experiencing a prolonged period of declining sales, with March being the twelfth consecutive month of negative year-over-year sales. While there was a significant month-over-month increase in sales between February and March of this year, that is likely attributed to the start of the Spring selling season.
- Despite this increase, year-to-date sales in the Heights are still significantly behind last year’s figures, with a 51% decline. However, the neighborhood is only 19% behind sales figures from 2019, which is considered a more “normal” year for the housing market. This suggests that while there is still a long way to go before the market fully recovers, there may be some signs of stabilization and improvement in the housing market in the Heights.
- The data also shows that the rate of home price increases in March was much slower than the previous year. The average and median sales prices only increased by 4% and 5%, respectively, year-over-year. However, there was a significant drop in prices compared to the previous month, with the average and median sales prices dropping by 9% and 10%, respectively, compared to February 2023. This is partially the result of a decrease in the ratio of homes sold with a price tag of one million dollars or more from 28% to 19%
- The “Close to List Price Ratio” for all sales in March was 99%, with a range of 87% to 125%. This means that, on average, homes sold for 99% of their listed price. The “Close to List Price Ratio” remained at 100% for homes under contract within the first seven days of listing.
- The median number of days on the market for homes in the area decreased by 15% on a month-over-month basis, from 26 to 22 days. However, it is worth noting that the median days on market for March 2023 (22 days) is twice the number of median days on market for the same month in 2022. This suggests that homes are taking longer to sell this year compared to the previous year.
- Months of single-family home inventory* on hand hovered around 2.5 months for most of March; still a solid seller’s market. As a reminder, a balanced market is around five months of inventory, so we still have a long way to go!
- March’s highest over-list price sale award goes to a Norhill fixer-upper bungalow. It sold for 125% ($76,000) over the list price.
*Months of Inventory is a measure of how fast all the existing homes on the market would last, assuming a) no more listings are added and b) the rate at which homes sell is a constant figure based on the average of the last 12 months of sales.
HEIGHTS* KEY MARKET INDICATORS -SINGLE-FAMILY HOMES
SINGLE-FAMILY HOMES | MAR 2022 | MAR 2023 | CHANGE | FEB 2023 | CHANGE |
ACTIVE LISTINGS | 134 | 188 | 40.3% | 168 | 11.9% |
SALES | 90 | 67 | -25.6% | 49 | 36.7% |
AVG SALES PRICE | $782,586 | $809,951 | 3.5% | $885,208 | -8.5% |
MEDIAN SALES PRICE | $668,000 | $699,900 | 4.8% | $775,000 | -9.7% |
AVG DAYS ON MARKET | 59 | 60 | 1.7% | 66 | -9.1% |
MEDIAN DAYS ON MARKET | 11 | 22 | 100% | 26 | -15.4% |
CLOSE PRICE-TO-LIST PRICE RATIO | 100% | 99.3% | -0.7% | 99.5% | -0.2% |
Note: Median represents the “middle” number and better represents central tendency than average. For example, the median sales price is the figure at which half of the homes sold for more and half sold for less.
SOLD TO LIST PRICE RATIO ANALYSIS-MAR 2023
DAYS ON MARKET | ALL | 0-7 | 8-30 | 30+ |
HOMES SOLD | 67 | 31 | 20 | 16 |
MEDIAN SALES PRICE/LIST PRICE RATIO (SP/LP) | 99.3% | 100% | 98.7% | 97.4% |
SP/LP RANGE | 86.5-125.4% | 93.1-125.4% | 86.5-101.2% | 93.3-100% |
Source: HAR
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