As expected, home sales trailed 2022 volumes in Houston last month. However, the Houston Association of Realtors® April 2023 Market Update suggests that the housing market demonstrated resilience in the face of volatile interest rates and that Houston is still on the road to “normalcy.”

Home sales dropped by 18.4% year over year, with inventory soaring high above the historic lows of 2022. There were declines in all housing segments during the month, with the greatest decreases seen in the $99,000 or less range and the $100,000 to $149,999 range.

“The housing market turnaround was never going to happen overnight, especially with interest rates still fluctuating, uncertainty about inflation and speculation about a recession,” said Cathy Treviño, HAR’s 2023 chair. “Anecdotally, we have many Realtors reporting that their sub-markets are performing well, which underscores the fact that real estate is local. We are still hopeful that the Houston housing market as a whole will strengthen later this year.”

Home prices have also fallen in the midst of decreased sales activity. The average price for a single-family home fell 1.3% to $419,929 while the median price fell 3.6% to $331,000. Houston’s average home price hit an all-time high of $438,327 in May of last year, while the median price hit a peak of $353,995 in June.

Furthermore, while supply drastically outweighs 2022 volumes, the current inventory of 2.8 months is still well below the four to six months seen in a “balanced market” (where neither the buyer nor the seller has the upper hand).