Harris County Tax Appraisal District Residential Property Market Trends

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Impact of Rising Interest Rates on Harris County Property

  • Mortgage rates have climbed significantly from their historical lows, now ranging between 7.0% and 7.5%.
  • The aggressive hike in interest rate between February 2022 and July 2023 pushed the Fed Funds Rate to 5.50%, impacting property valuations in the Harris County Appraisal District.
  • These higher interest rates are contributing to reduced housing affordability, which could lead to a slowdown in the housing market.

As of April 1, 2024, mortgage rates have surged to levels not seen in recent years, driven by Federal Reserve actions, impacting housing affordability and the market, as reflected in the tax appraisal district assessments.

Housing Inventory Trends in Harris County

  • The housing inventory grew from 2.6 months in January 2023 to 3.3 months in December 2023, according to the Houston Association of Realtors (HAR).
  • This marks a notable rise compared to the 1.3 months of supply recorded in January 2022, as indicated by HCAD property data.
  • The increased inventory has stabilized the market, helping median and average home prices remain steady compared to the previous year, as seen in the evaluations.

The availability of homes in Harris County has shifted significantly over the past two years, impacting housing prices and market stability, as reflected in the Harris Appraisal data.

HCAD Single Family Home Market Overview

  • Single-family home construction dropped from 25,000 to 10,000 homes between 2007 and 2011, according to the appraisal data.
  • Construction has risen since 2011 but have not reached pre-recession levels, indicating a slow recovery.
  • Since 2020, housing starts have risen, but new construction values have increased at an even faster pace, as seen in the Harris County Appraisal District evaluations.

The property records show that housing market has seen significant shifts in single-family home construction and property values in recent years.

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