Navigating Houston's Seller's Market: Insights & Stats

By Mike Gray

When it comes to providing peerless customer service and fulfilling the needs of his clients, if Michael Gray tells you that “the sky’s the limit,” he’s not kidding. Formerly an airline pilot, where attention to detail and focus are crucial and following a process is absolutely necessary to achieve proper results, Mike learned early in his real estate career how well those skills transfer and how important they are to the buyers and sellers with whom he works.

Houston’s vast expanse, rivaling the size of eight states, makes its real estate market as diverse and complex as the city itself. Consisting of multiple cities within a city, Houston offers a variety of trends and numbers across its greater area, particularly in Harris County. Drawing insights from the Texas A&M Research Center’s tracking, we delve into how the market has evolved and what current trends indicate for buyers and sellers alike.

Since 2015, Texas A&M’s Real Estate Center has meticulously tracked months of inventory, a pivotal indicator for market dynamics and price fluctuations. The equilibrium between buyers and sellers typically occurs at six months of inventory. However, as of January this year, Harris County is experiencing just 2.3 months, signifying a strong seller’s market. This trend has persisted over the years, with inventory levels never hitting the six-month mark since tracking began, peaking at four months briefly in 2017 and 2019.

The implications are significant. In 2015, the average home price in Harris County was $256,000, with 2.3 months of inventory. Fast forward to the present, and the average price has soared to $425,000, with inventory levels stagnant at 2.3 months. This escalation in prices, coupled with rising property taxes and insurance costs, creates a challenging environment for average buyers.

Focusing on micro-areas such as Bel Air, Montrose, and River Oaks, we observe this pattern repeating, sometimes even at an exponential rate. For instance, Bel Air’s average home price jumped from $1.1 million last year to $1.4 million this year. Montrose saw an increase from $837,000 to $1.15 million, and River Oaks’ average spiked from $3.5 million to an astonishing $6.4 million.

These numbers, while subject to variability based on the high-end market and inventory levels, underscore a continuing trend of unaffordability and market struggle. The Houston real estate landscape remains a seller’s market, posing significant challenges for buyers.

For anyone navigating this complex market, staying informed and seeking expert advice is paramount. Whether you’re considering buying, selling, or simply curious about the state of Houston real estate, feel free to reach out by calling or sending an email for more information. You can also suggest topics for future discussion.