League City Real Estate Update - 2025 is right around the corner

Welcome to the December 2024 market update for League City, Texas! In this post, we’ll break down the latest housing trends, including home price changes, inventory shifts, and neighborhood performance. Whether you're considering buying or selling in League City, understanding these market dynamics is key to making informed decisions.

Key Real Estate Trends in League City: Price Rebound

After a brief slowdown, housing prices in League City are making a quick rebound. Last month, we saw a dip in prices, but the market is already bouncing back. The data highlights several key trends driving this recovery:

• Median Sold Price: Up by 5.26% month over month. This is a strong indicator that demand is outpacing supply, pushing prices upward in the area.

• Median List Price: Currently sitting at $499,000, with 189 new listings entering the market. While this figure is down 5% from last month, it’s still reflective of the continued interest in League City.

• Price Per Square Foot: The median price per square foot stands at $170, with homes averaging about 2,500 square feet. This slight increase suggests that larger homes are selling, likely due to buyers looking for more space.

Inventory and Market Balance

The months of inventory metric is a crucial factor in understanding whether the market is favoring buyers or sellers. In League City, the trend is showing more properties for sale, which means:

• Inventory Increase: There are currently 398 active listings, signaling a more plentiful supply than we’ve seen in recent months. The months of supply is at 3.35 months, which is above the balanced market threshold of 3 months. This indicates that we are transitioning toward a buyer’s market, though it's still relatively close to balanced.

• Buyer’s Market Characteristics: With more options on the market, buyers have greater negotiating power. However, this shift doesn't mean prices will drop significantly. The demand for homes remains strong, especially for well-priced, move-in ready properties.

• Supply vs. Demand: There's a 30% increase in inventory compared to the previous year, indicating that more homes are available, but demand is slightly lower due to seasonal slowdowns (think holidays and end-of-year priorities). We’re seeing an overall increase in listings, though fewer homes are selling due to reduced activity.

Pending Sales: A Slowdown in Activity

While new listings have increased, pending sales have decreased by nearly 40% month-over-month, with only 92 homes pending. This indicates a slowdown in market activity, often attributed to the holiday season when fewer buyers are actively searching for homes.

• Price Trends for Pending Homes: The median list price for homes under contract is $386,900, lower than the current median list price of $419,000. This highlights that mid-range homes are moving faster than higher-end listings.

Neighborhood-by-Neighborhood Market Analysis

1. Marbella

Marbella has been facing challenges recently, with homes staying on the market longer and experiencing a slight decrease in average sold price.

• Months of Inventory: At 3.52 months, Marbella is seeing more inventory than League City's overall average.

• Average Sold Price: Homes are selling for an average of $412,500, reflecting a 4.62% decrease over the past year.

• Days on Market: There's been a 320% increase in days on market, signaling that homes in this area are taking longer to sell.

Despite these challenges, 98.7% of listings are selling at or near the list price, indicating that well-priced homes still attract attention. However, new construction in surrounding areas, like Coastal Point, may be affecting demand in Marbella.

2. Hidden Lakes

Hidden Lakes has experienced a 10% increase in inventory, resulting in 4.17 months of supply. While this still falls within a buyer’s market, the area's price dynamics remain strong:

• Average List Price: Homes in Hidden Lakes are priced higher, with an average list price of $485,000. These properties tend to be larger, averaging 3,000 square feet.

• Price Per Square Foot: The $174 per square foot is slightly higher than League City's overall average of $170, signaling that Hidden Lakes caters to a more upscale market.

• Pending Sales: There’s only one pending sale this month, and while this is a smaller sample size, it suggests a cooling of activity in the neighborhood.

Despite the rise in inventory, Hidden Lakes' higher-end homes are still seeing activity, though they may take longer to sell.

3. Victory Lakes

Victory Lakes remains one of the most desirable neighborhoods in League City, as evidenced by its low inventory:

• Months of Inventory: At just 1.59 months, Victory Lakes continues to be a strong seller’s market with homes in high demand.

• List to Sold Price: Homes are selling for 99.8% of list price, indicating that properties are priced appropriately and buyers are willing to meet sellers’ expectations.

• Average Listing Price: At $595,000, Victory Lakes commands a higher price point due to its larger homes, with an average square footage of 4,253 square feet.

Properties in Victory Lakes are selling quickly, with an average of just 37 days on market, and the area continues to be an attractive option for buyers looking for space and luxury.

What’s Next for League City’s Housing Market?

Looking ahead, the spring market is shaping up to be a competitive one. If interest rates decrease as expected, we anticipate an increase in demand, with prices likely to rise as well. Many sellers are waiting until spring to list their homes, meaning competition could intensify as more homes become available.

For buyers, now may be a good time to take advantage of the relatively low prices and increased inventory before the spring surge. Sellers, on the other hand, should begin preparing for the busy selling season to maximize their returns.

What This Means for You

• Buyers: If you’re considering purchasing a home in League City, don’t wait too long. With interest rates possibly dropping in 2025, prices are expected to climb as demand picks up in the new year. Act quickly to secure a home at today’s prices.

• Sellers: If you plan to sell in 2025, start planning now. The spring market promises to be competitive, and early preparation can help you get ahead. Reach out to a real estate agent now to discuss your strategy.

Conclusion: Is Now the Right Time to Buy or Sell in League City?

In conclusion, the League City real estate market is experiencing a rebound after a brief slowdown, with inventory levels climbing and homes selling at solid prices. Whether you're looking to buy or sell, the market shows promise for both. However, timing is crucial, as shifts in interest rates and increased competition in spring 2025 could affect your strategy.