Home sales increased annually during November, according to a new report from the Houston Association of REALTORS® (HAR).

Single-family sales rose by 4.9% during the month, representing the first month of year-over-year increase since March 2022. The only housing segment that saw declines was the sub-$150,000 market, while the top-performing segment, up 8% year over year, was that of homes priced between $250,000 and $500,000. That segment represents 59.8% of the Houston market.

Pending sales also increased by 11.9%, with 6,069 properties going under contract during the month.

Meanwhile, active listings increased by 13.5% year over year, allowing months of supply to increase to 3.5 months, up from 2.8 months a year prior.

“I couldn’t think of a better way to wrap up 2023 than to see positive sales trends after nearly two years of negative trending,” HAR Chair Cathy Treviño said in the report. “Home sales hinge heavily on interest rates, so hopefully consumer confidence will be restored as we begin the new year, especially since inventory has steadily improved and prices have moderated, creating more favorable conditions for buyers.”

The average single-family home prices increased by 1% to $404,597, while the median dropped 1.2% to $326,000. The total dollar value of the Houston market increased by 7.5% to $2.9 billion.