Houston sees record real estate prices in May

HOUSTON — The average cost of a home in Houston continues to climb, reaching a new record of $443,970 in May. This represents an increase of 3.6% from May 2023, according to the Houston Association of Realtors (HAR).

The median price increased 1.5% to $345,000.

With the combination of record prices and high interest rates, many first-time buyers are struggling to afford a home in today’s market.

Despite this, HAR reports strong activity and persistent consumer demand, which is helping to push prices to record levels.

The high-end Houston market saw the strongest performance in May, according to HAR. Sales in the luxury segment of homes over $1 million climbed 9.6%.

Sales of homes priced between $500,000 and $1 million increased 6.8% year over year.

All other housing segments experienced a slowdown in sales last month, which HAR attributed in part to delays in closings caused by the May 16 derecho storm.

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