Inventory levels improve in May as listing volume increases

While the volume of new and active listings in Greater Houston remains historically low, the market saw a slight turnaround in May from a year earlier, according to a new report from the Houston Association of REALTORS® (HAR).

The First Real Estate Snapshot of Houston (FRESH) report, released by HAR on the first day of each month, summarizes the local real estate market between the Multiple Listing Service (MLS) monthly reports.

New listings rebounded last month, improving inventory levels slightly as sellers seek to take advantage of record home prices.

Real estate agents entered 13,283 properties in the Multiple Listing Service (MLS) compared to 12,182 last May, an increase of 9%.

Active listings were up 21.5% year-over-year, with 13,742 properties in MLS compared to 11,311 in May 2021. The report notes that this rise in available properties is a possible reflection of rising interest rates and high house prices that cause buyers to approach the market more cautiously.

The average list price (ALP) for a home in Houston hit a new record high in May, up 12.6% to $441,303 from $391,914 a year earlier. Prices have risen above the ALP’s previous high of $425,382 reached in April 2022, supporting lingering concerns about housing affordability.