After a slowdown in 2020 due to the COVID-19 pandemic, the Houston housing market has rebounded, with a steady increase in home sales and prices. As of February 2023, the Houston housing market is experiencing a period of stability and growth. 

Current challenges

The property market in Houston, Texas, which has been prospering for years and has drawn buyers and investors, has long been one of the most popular in the nation. In 2020, the Houston housing market saw a drop in home sales due to the economic uncertainty caused by the pandemic. However, this decline was short-lived, and the market rebounded quickly, with a substantial increase in sales in 2021 and 2022. 

In 2022, several reasons, including rising interest rates, contributed to a slowdown in the Houston housing market. The average home price in Houston increased by 8% in 2022, reaching $254,000. As realtors in Raleigh, NC, say, high demand for housing drove this increase in prices, as many people are looking for more space and a better quality of life these days.

The increasing interest rates directly impacted the Houston real estate market, making it more expensive for buyers to finance their homes. There was a downturn in the market due to the rising cost of borrowing money and the increased reluctance of many buyers to buy a property.

The growing uncertainty about the city’s economic viability is another issue that the Houston home market must deal with. Houston has historically been able to withstand economic downturns. Still, it now faces growing competition from other Texas towns and cities around the nation.

What does the future look like?

Despite these obstacles, the Houston home market will have a bright future in 2023. Prices will keep going up because there is a lot of demand for homes and not enough available ones. At the same time, mortgage rates have decreased somewhat, and a thriving economy will sustain the market as we advance, making it a desirable location for buyers and investors.

Houston has a diverse and robust economy, with a strong presence in the energy, healthcare, and technology sectors. The city’s strong economic growth has attracted many new residents, leading to increased demand for housing.

In addition to a strong economy, Houston’s affordability is also driving the growth of its housing market. Compared to other major cities in the US, Houston offers a lower cost of living and a more affordable housing market. This affordability has made Houston a popular destination for homebuyers, particularly those who are looking for more space for their money.

In 2023, we expect the Houston housing market to continue to grow, with increasing demand for housing, low mortgage rates, and a stable economy. It is estimated that home prices in Houston will continue to increase, with an average increase of 5-7% in 2023. Additionally, the demand for housing in Houston will remain strong, driven by the city’s growing population and expanding economy.

The final take

The Houston housing market is now experiencing a period of stability and growth and will not crash in 2023. Its housing market is expected to remain strong in the coming years despite the current challenges.