Houston Housing Market Cools Down in August, Creating Opportunities for Buyers

Hey Houston! As summer temperatures soared in August, the Houston housing market decided to take a little breather, giving buyers some much-needed room to breathe, too. With slower sales and growing inventory, it looks like now might be a great time for those looking to make a move. Here’s a quick rundown of what went down last month!

August Market Snapshot: What’s Happening in Houston?

The latest data from the Houston Association of Realtors (HAR) shows that single-family home sales across Greater Houston took a slight dip, down 8.3% compared to last August. That’s 7,340 homes sold this August versus 8,006 the year before. While that might sound like a downturn, it’s actually good news for buyers—more homes are staying on the market longer, and prices are starting to level off.

Inventory is up, too, expanding from a 3.2-month supply to 4.5 months, the highest level since September 2012. That means there are more choices out there for those hunting for a home. The market is cooling off a bit, but that’s not necessarily a bad thing, especially if you’ve been feeling priced out lately.

Price Trends: Small Shifts, Big Impacts

Prices are holding relatively steady. The average price of a single-family home in Houston edged up by just 0.9% to $421,912, while the median price dipped slightly by 0.3% to $336,940. So, while prices aren’t skyrocketing, they’re not falling off a cliff either. It’s a balanced shift that can create more opportunities for both buyers and sellers.

Luxury Homes Still Shining Bright

Interestingly, the luxury market—homes priced at $1 million and up—was one of the few bright spots, seeing a 2% increase in sales. This segment only makes up about 4.1% of all home sales, but it’s nice to see it holding strong even when other price brackets are slowing down. On the flip side, homes priced between $100,000 and $149,999 saw the biggest drop in sales, down 13.2% year-over-year.

What This Means for Buyers and Sellers

According to HAR Chair Thomas Mouton, even though sales have slowed, the market remains healthy. Expanding inventory and easing mortgage rates are giving buyers more opportunities, and a potential Fed rate cut could boost confidence even more. So, if you’re on the fence about buying, this might be the right time to make your move.

Other Key August Market Highlights

• Total property sales dropped by 11.2%, with 8,730 units sold.

• Total dollar volume fell 8.8% to $3.5 billion.

• Homes are taking slightly longer to sell, with Days on Market (DOM) increasing from 43 to 47 days.

• The number of active listings rose 29.3% from last August, providing more options for buyers.

• Townhome and condo sales also saw a decline, dropping 16.7% with an average price of $258,952.

The Bottom Line: A Balanced Market in Sight

With the current inventory levels, Houston’s market is inching closer to what’s considered a “balanced market,” where neither buyers nor sellers have a distinct advantage. Nationally, the inventory stands at a 4.0-month supply, and Houston isn’t far behind at 4.5 months. This shift could spell more negotiating power for buyers and a bit of breathing room for sellers who’ve been feeling the pressure to move quickly.

So whether you’re buying, selling, or just keeping an eye on the market, August’s data is a reminder that the real estate game is always changing. Keep an eye out for HAR’s upcoming rental market update on September 18 to see how that side of the market is doing, too.

Stay tuned, Houston!