Galveston Real Estate Market Prices, Trends, and Forecast 2023

Galveston is a coastal city in Texas that offers a unique blend of stunning features and amenities, making it an attractive destination for both residents and visitors. Galveston stands out as a true jewel in the Texas real estate market, from its picturesque beaches and historic architecture to its vibrant cultural scene.

In this blog post, we will delve deeper into the current outlook of the Galveston real estate market, explore key market trends, and provide valuable insights and advice for buyers, sellers, and investors looking to navigate the local housing market.

According to a Rocket Homes report, the Galveston real estate market is currently classified as a neutral housing market, offering reasonable prices and a typical length of time for homes to stay on the market. This is a notable change from last year when Galveston was considered a seller's market, indicating a shift in favor of buyers. However, it's important to note that many homes in Galveston are still selling quickly, so if you're considering buying, it's advisable to act promptly.

The median home value in Galveston is $170,100, slightly higher than the state-level median of $161,700 but lower than the national indicator of $204,900. This makes Galveston an attractive option for those seeking affordable housing within the coastal region.

The median sold price in Galveston is $446,937, with an impressive increase of $73,200 (19.6%) compared to the previous year. This price surge indicates a growing demand for properties in the area, making it an opportune time for sellers.

In the past month, approximately 72.3% of homes in Galveston sold below the asking price, suggesting room for negotiation. On average, single-family homes sell 2.85% below their list price, while condominiums sell 1.50% below their list price, according to Zerodown. These figures highlight the potential for buyers to secure favorable deals in the current market.

Rocket Homes report that the number of homes for sale in Galveston has significantly increased, rising from 708 in April 2023 to 848 in May 2023, representing a 19.8% growth. The number of homes sold also experienced a notable increase, jumping from 101 in April 2023 to 130 in May 2023, marking a 28.7% rise. However, the average sale time has increased by 94.0%, reaching 56 days in May 2023. This indicates that while the market is active, buyers may need to exercise patience during the purchasing process.

Galveston boasts an owner-occupied rate of 46.18%, reflecting a mix of homeowners and renters in the city. This diverse demographic offers opportunities for both buyers and investors in the Galveston real estate market.

Galveston County collects an average of 2.01% of a property's assessed fair market value as property tax, ranking it 190th out of 3,143 counties in terms of median property taxes. Buyers and homeowners must consider these tax implications when evaluating their investment in Galveston real estate.

When examining the broader trends in Galveston County, it becomes clear that the county's real estate market holds considerable influence over the Galveston housing market. Galveston County is classified as a sellers' market, meaning sellers generally have the upper hand due to higher prices and faster home sales. This trend directly impacts the local housing market within the city of Galveston.

In May 2023, the median sold price in Galveston County stood at $340,118. This represents a significant 4.8% increase compared to May 2022, showcasing the strength and resilience of the real estate market in the county. The upward trajectory of median sold prices highlights the demand for properties in Galveston County and creates an environment where sellers can potentially maximize their returns on investment.

Furthermore, a noteworthy aspect to consider is that 58.1% of homes in Galveston County sold below the asking price. This statistic indicates that there are opportunities for buyers to find good deals and potentially negotiate favorable prices. It underscores the importance of thorough market research, proper valuation, and strategic negotiation skills when entering the Galveston real estate market.

This neighborhood is known for its rich history and stunning architecture. Buyers will find a mix of beautifully restored historic homes with intricate details, showcasing the sophistication of a bygone era.

As the name suggests, Beachtown is a beachfront neighborhood that offers a luxurious coastal living experience. Buyers can enjoy breathtaking views, direct beach access, and a community designed to blend harmoniously with the natural surroundings.

Nestled on the west end of Galveston Island, Pirates Beach is a sought-after neighborhood for its upscale homes and proximity to the beach. A myriad of stunning beachfront properties and elegant homes dot this idyllic coastal neighborhood.

This waterfront neighborhood offers an exclusive and secluded living experience. Buyers can explore exquisite properties with private boat slips, providing easy access to Galveston Bay and the Gulf of Mexico. The Spanish Grant community offers a serene retreat for those seeking quiet waterfront living.

Looking ahead to 2023, the Galveston real estate market shows promising signs of maintaining a positive trajectory. Over the past ten years, homes in Galveston have experienced an average annual appreciation rate of 0.54%. This rate surpasses state and national average growth rates, suggesting the potential for continued value appreciation in the coming years. Such market conditions make Galveston an attractive destination for individuals looking for long-term investment opportunities in real estate.

The Galveston real estate market presents plenty of opportunities and challenges for buyers, sellers, and investors alike. With a neutral housing market, reasonable prices, and a diverse range of properties, Galveston offers a unique coastal living experience that continues to attract individuals seeking a relaxed yet vibrant lifestyle. By staying current about market trends, understanding median home values and sales prices, and leveraging professional insights, players in the Galveston real estate market can seize opportunities in this dynamic city.

Whether you're seeking homes for sale in Galveston or looking to maximize your returns as a seller or investor, working with professionals like Ashley Marquez will provide the guidance and expertise needed to find homes for sale in Galveston or to sell your local property. Begin your Galveston real estate journey today and explore the endless possibilities that this coastal gem has to offer.