Although new-home prices decreased last month and new-home sales fell flat, HomesUSA CEO Ben Caballero says the Houston new-home market “looks strong” entering 2024.

According to the latest New Home Sales Report from HomesUSA.com, new-home sales increased fractionally with 1,669 sales in September and 1,708 in October, while the average new-home price decreased from $423,024 to $410,034. Pending sales also fell month-over-month.

“Overall sales were relatively flat, largely due to seasonality. Still, the overall data is validating continued strength of our overall Texas economy,” Caballero said in the report. “The Houston new-home market sounds like a broken record — strong and steady, strong and steady.”

Amid slower sales, new-home inventory grew during the month with 11,720 new homes on the market in October. Meanwhile, the pace of new-home sales increased, with the average home selling in 88.15 days compared to 93.73 days in September.

“The strength I’m seeing in new-home production and sales this fall indicates that 2024 looks strong for Texas homebuilders,” Caballero said. “That’s provided interest rates remain steady or decline, and the economy remains stable.”