Although mortgage rates increased, both home sales and housing inventory rose in Houston in October. That’s an indicator of a “healthy and active market,” according to the Houston Association of REALTORS® (HAR).

Single-family home sales rose 12.8% year over year, with the strongest sales seen in the luxury price range. Sales of homes priced $1 million-plus jumped 33.8%, while sales rose 25.9% for homes priced between $500,000 to $999,999.

“While mortgage rates have edged up, they remain well below the peak levels reached last year,” HAR Chair Thomas Mouton said in the association’s latest housing market update. “This more favorable rate environment is helping sustain buyer demand and driving continued activity in the Housing market as we enter the final months of 2024.”

The average home price rose 5.2% to $423,166 in October, while the median rose 2.7% to $334,900.

Meanwhile, active listings increased 23.5%. Given the rate of sales, that represents a 4.4-month housing supply, up from 3.5 months in October 2023. That’s well within the four-to six-month range seen in a balanced market.