Houston Real Estate Market 2025
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January 2025: Steady Growth and Opportunity in the Houston Real Estate Market
Houston’s real estate market continues to show resilience and stability heading into 2025, with positive appreciation trends and increasing transaction activity. We were joined by our special guest, Steven Curtis, Chief Production Officer at NRL Mortgage to go over the data! Let’s break down the key points from our recent market analysis to understand what’s driving this growth.
Key Takeaways
- Steady Appreciation: Houston consistently achieves over 3.5% annual appreciation, with 4.3% growth this year.
- Market Health: Both transactions and inventory are increasing, signaling a balanced, healthy market.
- Interest Rate Strategy: Investors should act when rates dip, locking in good deals with future refinancing opportunities.
- Stable Rental Market: Rents have risen by $500 over five years, with steady gains even during national slowdowns.
- Safe Investment: Houston offers stable long-term returns, attracting both new and experienced real estate investors.
Sales Trends
- Total Dollar Volume increased to $3.11 billion, up 7.3% from the previous year.
- Increased Sales: Single-family home sales rose by a staggering 17.4% year-over-year, totaling 7,162 units sold in December 2024 compared to 6,103 units sold in December 2023.
- Average Sales Price increased to $425,150, representing a higher than average 4.3% year-over-year increase. This indicates the continual appreciation of homes in the Houston real estate market area.
- Pending Sales in December 2024 were at a total of 7,045 pending transactions, up 23.1% compared to last year.
Consistent Market Appreciation
Houston’s real estate market’s average and median prices continue to rise over the years at an annual rate of 3.5%. According to HAR’s market trends for 2025, this will continue. This steady growth is significant, especially given the current interest rate environment. Other markets, like Dallas, are already seeing higher appreciation which will continue, and Houston’s real estate market offers long-term consistency offers a reliable investment opportunity.
Price Stability
- Steady Home Prices: The average price for single-family homes increased slightly to $425,150, while the median price rose 1.3% to $334,290.
- Price Per Square Foot: Redfin reports that the median sale price per square foot in Houston was $181 in December 2024, reflecting a 6.5% increase from the previous year.
“Houston’s housing market is poised to continue its growth, supported by a steady demand for homes and a greater selection of properties for buyers to choose from,” suggested Shae Cottar from HAR.com Houston Market Update for December 2024.
Houston Real Estate Market Highlights
- Months of Inventory: Current 4.0 months of inventory, slightly up from 3.3 months in December 2023. There are currently 31,550 single-family homes on the market, an modest 2.5% increase from last year.
- Days on Market: Properties spent an average of 59 days on the market, increasing by only 3 days year-over-year. This trend may provide investors opportunities to secure properties at favorable prices, especially if they are prepared to navigate negotiations effectively.
- Rentals: Leased listings remained stable (“flat”), and the average lease price rose to $2,254, a 2.0% increase from last year.
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