Are you thinking of moving, but you don’t know where to go, how much you should spend, or how to list your current home? Don’t worry — we can help you make the best decision regarding Texas real estate trends!
After all, hundreds of people are thinking of moving to this bustling and exciting state. With tons of urban cities, beautiful nature, mouthwatering restaurants, and cultural attractions, it is no wonder Texas is at the top of peoples’ lists when it comes to buying a house.
The top city destination on the list is Houston, TX. This vibrant and exciting city is a smart move for young professionals, families, retired couples, or solo travelers who are looking to keep house prices low and purchase real estate in Texas.
Homeowners and house sellers who are thinking of relocating this upcoming year should first do some research on the Houston housing market. Analyzing current housing market trends can help those looking to buy a house in Texas or sell a home in their current neighborhood get the best deal possible.
Average Home Price in Houston
Understanding the housing market statistics in Houston is key for homeowners and house sellers. For example, the average home price in Houston is $272,473, increasing nearly 17% from last year.
The 1-year market forecast in Houston shows home prices rising to nearly $280K in the middle and third quarters of 2022. In the spring of 2021, the average home price was $211k. At the end of 2019, the average home price was hovering around $190k.
Back in the middle of 2015, the average home price in Houston was just under $170k. As you can see, the average home price has increased by over $100k in the past seven years.
When it comes to single-family homes in Houston, the average price is a little higher, coming in at nearly $285k in the middle of 2022. The average price of a single-family home was around $165k in 2015, showing over a $120k increase in the past seven years.
Regarding condominiums in Houston, the pricing has also increased since the middle of 2015. Currently, the average condo price in Houston is just under $170k. Back in 2019, the average condo price came to around $130k.
In the middle of 2015, the average condo home price was $110k, which shows how the average condominium price in Houston has increased by around $60k in seven years.
The average home price in Houston also fluctuates by neighborhood. The median price is as follows in the most popular neighborhoods:
- Lazy Brook Timbergrove — $543K
- Washington Avenue Coalition — $484K
- Northside — $220K
- Fourth Ward — $377K
- Downtown — $369K
- Independence Heights — $260K
Along with the average home price in Houston, the number of homes sold in August of 2022, according to Redfin, came to 2,495 for all home types. This number is down 22% from last year.
The number of homes sold at this time last year was approximately 3,200, whereas the number of homes sold in August of 2020 (during the pandemic) was around 3,000.
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High and Low Home Prices in Houston
Understanding the Houston real estate market can help homeowners price their houses and figure out the extremes of the Texas housing market. Knowing the high and low home prices in Houston can help home buyers, and house sellers find an appropriate house for their budget.
Home sales for properties in the $500K and $1 million range increased by over 10% over the past year. Property sales for houses priced between $250K and $500K decreased by 9% in the last year.
The number of home sales for the lowest house prices in Houston, which are between $1 and less than $100K, decreased by 35%. We buy houses Houston sellers want to get the best deal on, with competitive rates that you can’t turn down.
Along with affordable houses under $200K, there are expensive home sales in TX, high-end properties, and desirable areas that can cost more money.
For those who want to relocate to Houston, learn how to sell a house fast in Arlington before buying a new property in the city.
Best Areas to Live in Houston
Finding the most desirable areas to live in Houston is essential before you purchase a home.
Homebuyers and renters need to make sure they find a location in the greater Houston area with a good school system, high safety ratings, low mortgage rates, favorable neighborhoods, easy walkability to nearby attractions, and fair housing prices.
While there are several areas in Texas that families like to live in, some of the best Houston neighborhoods for multi-family homes are as follows.
Downtown Houston
Moving to Downtown Houston is the place to go if you want to be close to the action. There is much to do with your family in this area of town, including visiting the Downtown Aquarium and Market Square Park or catching a baseball game at Minute Maid Park.
Montrose
Montrose is a more affordable area that offers a “hipster” vibe. There are several galleries and museums in the Montrose area, including The Menil Collection and the Rothko Chapel.
Second Ward
The Second Ward is one of Houston’s original four neighborhoods. It is a great spot for young adults who want to walk, bike, or play sports after work in one of the many parks.
West University Place
For families moving to Houston, West University Place is the best neighborhood to buy a home. There is a low crime rate, and while it is close to the city, there is a small-town vibe to the area.
Midtown
Midtown is a walkable historic neighborhood. Many young professionals live or spend time in this area because it offers dozens of local eateries and cultural attractions.
Sale-to-list Price Ratio in Houston
According to Redfin, the average sale-to-list price for all home types in Houston is 98.5%, which shows a 0.39% decrease in year-over-year return since last year. However, this decrease is minimal and has shown little change over the past one, three, and five years.
The number of homes sold above the list price (or asking price) for all home types in August of 2022 comes to 26.9%, which is 3.6% less than it was last year. However, this number has significantly increased since 2020, when the number of homes sold above the asking price was just over 10%.
Regarding single-family homes, the number of homes sold above the list price was 28.8%, which showed a 6.7% price decrease from the previous year.
For condominiums, the number of homes sold above the list price was 17.2%, which showed a 7% increase since last year. Since August 2020, the number of condos sold above the list price has increased by 8%.
Lastly, for townhomes, the percentage of homes sold above the list price comes to 24%, which is over 6% higher than last year.
The number of homes with price drops for all home types comes to 34.5%, which is 2.2% higher than it was last year. This number has fluctuated greatly over the years, with the number of homes with price drops around 30% in August 2020, 35% in August 2019, and 32% in August 2018.
For townhouses, the number of homes with price drops comes to 35%, showing a 4.7% increase since last year. This number has increased by 5% since August 2020.
Regarding single-family homes, the number of homes with price drops has increased by 1.5% since last year, coming to just over 36%. However, this number has increased by over 8% since August 2020.
If you are having trouble finding homes for sale, consider working with the Houston Association of Realtors to browse the housing inventory.
Average Days on Housing Market
According to Redfin, the median “days on market” for all home types comes to 18, which is only one day higher than the year-over-year average in 2021. The average days of a house on the market was around 30 in August of 2020.
Therefore, the housing and rental market is more competitive now, and the Houston area is more desirable, showing how it is slowly going toward a seller’s market.
Furthermore, the Houston housing market is somewhat competitive, meaning that Houston is a balanced market, with most homes selling for the listing price and hot homes selling for 1% above the listing price. The average home sells in around 17-18 days, whereas hot homes sell in just six days.
Conclusion
Those who are considering moving to the Houston area need to look at the comparison of homes here vs. other competitive areas (i.e., San Antonio). Despite a slowdown in home sales, this is still a desirable area to move to.