INTEREST RATES CONTINUE TO WEIGH ON HOME SALES AS 2023 BEGINS

As your property manager, I wanted to provide you with a market update on the Houston housing market. January saw a decline in single-family home sales, with a 29.9% decrease compared to January of last year. However, it is important to note that when compared to January of 2020 (before the pandemic), sales were down only 4.6%. The average price increased by 1.5% to $381,983, and the median price rose by 1.6% to $315,000.

Despite the decline in sales, the Houston housing market is showing positive indicators for homebuyers. Inventory is on the rise and prices are moderating, which bodes well for homebuyers in the months ahead. If mortgage rates stabilize and homes continue to hit the market at more affordable prices, we could see an upswing in sales later this year.

Single-Family Home Rentals

The January 2023 Rental Home Update, to be released on February 15, will provide a complete overview of the rental market in Houston. However, we do know that single-family home rentals had another solid gain, reflecting the continued pivot of prospective buyers to the rental market until mortgage rates ease and inflationary concerns dissipate. This signals that there is strong demand for rental properties, which bodes well for rental property owners.

Days on Market and Occupancy Rates

Days on market for rental properties, or the time it takes to find a tenant, has not been significantly impacted by the pandemic and remains relatively stable. Occupancy rates for rental properties have also remained steady and continue to reflect high demand for rental properties.

Rental Rates

The rental rates for single-family homes in Houston have remained stable, but with continued demand for rental properties, there is potential for rental rates to increase in the months ahead.

In conclusion, the upswing in new listings and further pricing moderation in the housing market is positive news for both homebuyers and rental property owners. The solid demand for rental properties and stable rental rates reflect a healthy rental market, which is expected to remain strong in the months ahead.

Please let me know if you have any questions or concerns regarding the Houston housing market.

Best regards,

R Alex Narvaez | Sr.   Property Manager   
Alex@spmhouston.com

Superior Property   Management
Office: 281-754-1300 | Fax: 281-407-2665
5718 Westheimer Rd. STE 1000
Houston, TX 77057
www.SPMHouston.com