Conroe/Montgomery May: Sales Dip, Inventory Soars
Conroe/Montgomery’s housing market cooled in May: sales fell 15.6%, inventory surged 41.5%, and homes took longer to sell (46 days).
CONROE — The residential real estate market in Conroe and Montgomery experienced a distinct cooling trend in May, characterized by a sharp decline in transaction volume and an accumulation of unsold inventory, according to the latest market data from the Houston Association of Realtors (HAR).
For the month of May 2024, the region saw 588 single-family homes sold, a 15.6% decrease compared to the 696 transactions recorded during the same period last year. This dip in activity suggests that potential buyers are growing increasingly cautious as economic headwinds continue to weigh on the local housing sector.
Despite the reduction in sales volume, prices in the area have remained resilient. The median sales price for a single-family home rose to $359,000, a 1.7% increase over the $353,000 median observed in May 2023. Real estate analysts note that while demand has softened, the limited supply of move-in-ready properties and steady interest from regional growth have prevented a significant downward correction in pricing.
The most notable shift in the local market is the rapid expansion of available housing stock. Active listings surged by 41.5%, jumping from 1,366 units in May 2023 to 1,933 units this year. This influx of listings has shifted the balance of power, moving the market away from the hyper-competitive conditions seen in recent years toward a more balanced environment.
Homes are also taking longer to attract buyers. The average days on market climbed to 46 days in May 2024, up from 36 days a year ago. Furthermore, the months of inventory—a key metric representing how long it would take to exhaust current listings based on the current pace of sales—expanded from 2 months to 3.3 months.
Market experts often point to a healthy, balanced market having roughly four to six months of inventory. While the Conroe-Montgomery area is moving in that direction, the current inventory levels are largely viewed as a byproduct of higher mortgage rates. Nationally, the 30-year fixed mortgage rate has hovered near 7% for much of the spring, a factor that continues to discourage prospective buyers from entering the market or existing homeowners from trading up, effectively freezing some segments of the housing ladder.
Economic analysts suggest the shift is not isolated to Montgomery County but reflects a broader trend across the Greater Houston area as high interest rates and elevated insurance premiums begin to impact household purchasing power.
For those interested in tracking localized real estate trends or viewing the full data breakdown, the complete Houston Association of Realtors monthly report is available at har.com/newsroom.
As the summer season progresses, prospective buyers may find more leverage in negotiations due to the rising inventory and longer wait times for sellers, while homeowners looking to list may need to adjust their expectations to align with the cooling pace of sales.