Houston’s Million-Dollar Real Estate Market Booms in 2024

News Summary

Houston’s luxury real estate market is thriving in 2024, with a 10% increase in million-dollar home sales. The metro area recorded $5.7 billion in high-end transactions, accounting for 16% of total sales. Houston leads the state with a significant number of high-end sales, boasting an average sale time of just 49 days. The overall real estate market shows positive growth, as single-family home sales hit record levels despite declines in other sectors.

Houston’s Million-Dollar Real Estate Market Booms in 2024

Houston is buzzing with activity in the luxury real estate market, and the numbers are impressive. Recent reports reveal that the metro area saw a 10% increase in home sales priced at $1 million or more, amassing a whopping $5.7 billion in transactions for the year. This hefty amount accounts for about 16% of the total dollar volume for the Houston area, showcasing just how significant the high-end market has become.

The Rising Tide of Luxury Home Sales

In the last year alone, the sales of million-dollar homes statewide surged to 12,888, with 3,371 of those luxurious dwellings—about 26.2%—being located right here in Houston. This positions Houston second only to Dallas, where over 38% of such sales took place. It’s clear that the demand for high-end homes continues to climb!

Interestingly, the average price per square foot for these million-dollar homes has gone up as well. Statewide, it increased from $409 to $418 year-over-year, while for Houston specifically, it reached $389. When you compare that to the average of $180 per square foot for all homes in the area, it’s evident that luxury living comes with a premium.

Fast Sales and a Competitive Market

Another noteworthy trend: while luxury properties across Texas are taking a tad longer to sell—holding out for an average of 68 days—Houston’s luxury homes are proving to be hot commodities with an average of just 49 days on the market. With 3,371 new luxury listings surfacing during this timeframe, buyers are clearly eager to snatch them up!

When you look at more general housing trends in Houston, things are looking bright. In December 2024, total single-family home sales hit a record of 7,162, which translates to a 16.3% increase from the previous year. Overall property sales also reflected growth, rising 13.6% to 8,478, with dollar volume skyrocketing over 20.5% to exceed $3.5 billion.

Shifting Price Trends

For families looking to settle down, the average home price in Houston reached a staggering $443,970 in May 2024, a jump of 3.6% from a year earlier. Meanwhile, the median price also saw a small rise of 1.5%, hitting $345,000. However, with rising prices, the average monthly mortgage payment for a $345,000 home at a 7% interest rate stands at $2,129. That’s quite a leap compared to homes priced at $250,000 before the pandemic!

Market Stability Amidst Declines in Other Areas

While the luxury market thrives, it’s worth noting that the townhouse and condominium sectors have experienced a 12.0% decline year-over-year. But property buyers shouldn’t lose hope; the supply of single-family homes has increased to 4.4 months, up from 3.5 months in November 2023. This means more opportunities for homebuyers eager to explore their options.

Houston’s real estate climate remains competitive but stable, providing buyers with more inventory compared to previous years. With the city’s flourishing luxury market and overall growth in property sales, Houston continues to be a vibrant and attractive spot for both buyers and investors alike.

Keep your eye on Houston; it’s certainly a city that’s on the rise and shows no signs of slowing down anytime soon! Who knows what exciting developments are just around the corner?