Houston housing market overview

Housing Market Overview-HAR Report

 

July marked the third consecutive month of growth for the Greater Houston real estate market with strong buyer demand. Total property sales were 9.0 percent above where they were in July 2024. The boost in sales activity was accompanied by a 7.2 percent increase in total dollar volume, which topped $4 billion.

 

Active listings, or the total number of available properties, rose 31.1 percent to 61,144 units, which surpasses the previous record set in June of this year.

 


Houston housing market

HOUSTON — (August 13, 2025)/HAR Report — The Greater Houston housing market experienced a summer shift in July, with growing inventory and steady demand helping to stabilize prices. It has created a more balanced and sustainable market heading into the second half of the year.

 

According to the Houston Association of Realtors' July 2025 Housing Market Update, single-family home sales increased 9.2 percent year-over-year. A total of 8,300 homes were sold compared to 7,601 last year, when Hurricane Beryl temporarily halted market activity for several days.

 

July marked the largest year-over-year decline in home prices since 2023. The median price was down 3.1 percent to $339,000. The average price was $434,664, which is 1.9 percent below last year’s level.

 

Active listings reached an all-time high in July, exceeding 40,000 available homes in the Houston area. This represents a 38.2 percent increase from the same time last year. The average list-to-sale price ratio has held steady at approximately 94 percent over the past year.

 

“The rising inventory levels have led to modest price adjustments by sellers,” said HAR Chair Shae Cottar with LPT Realty. “While some homeowners are adjusting their expectations, many homes are still attracting solid offers. This is a good indicator that the Houston market continues to be in a relatively healthy and balanced spot.”

Houston real estate highlights

Houston Real Estate Highlights in June-HAR Report

 

  • Single-family home sales increased 12.5% year-over-year;

  • Days on Market (DOM) for single-family homes went from 47 to 49 days;

  • The single-family median price was statistically flat at $346,651;

  • The single-family average price increased 4.4% to $450,235;

  • Single-family home months of inventory expanded to a 5.4-months supply, up from 4.2 months last June.

  • Townhome and condominium sales declined 4.4% year-over-year. The median price was down 4.6% to $230,000, and the average price declined 3.3% to $261,702.

  • Total property sales increased 10.4% with 9,993 units sold;

  • Total dollar volume rose 16.4% to $4.3 billion.

Townhouse/condo for sale/rent in houston

Townhome/Condominium Update-HAR Report

 

Houston’s townhome and condominium market continued to experience a decline in demand, with sales falling for the fifth month in a row. A total of 483 units were sold compared to 505 a year earlier, which is a 4.4 percent year-over-year decline. The average price was down 3.3 percent to $261,702, and the median price dropped 4.6 percent to $230,000.

Single family home for sale/rent in Houston

HAR Report: The supply of single-family homes reached a historic high in June, with active listings of single-family homes climbing to 38,713. That is up 31.8 percent from the same time last year, and it marks the highest level of active listings ever recorded by HAR.

 

Months of inventory expanded from 4.2 months last June to a 5.4-months supply—a level not seen since June 2012. This tops the current national inventory level of 4.6 months, according to the National Association of Realtors. Days on Market inched up from 47 to 49 days.

 

Broken out by housing segment, single-family home sales in the Greater Houston area performed as follows:

  • $1 - $99,999: increased 24.0 percent

  • $100,000 - $149,999: increased 0.6 percent

  • $150,000 - $249,999: increased 3.4 percent

  • $250,000 - $499,999: increased 10.6 percent

  • $500,000 - $999,999: increased 14.2 percent

  • $1M and above: increased 40.6 percent

 

In June, existing home sales climbed 15.4 percent with 6,159 closings compared to 5,339 last year. The average price rose 5.4 percent to $470,784, which tops the previous record hit in May of $457,557. The median sales price also reached a record high in June of $352,000, which is an increase of 0.9 percent year-over-year.

Single family house for sale/rent in Houston

HAR Report: The median home price was statistically flat at $346,651. A surge in luxury home sales drove the average price to a record high of $450,235. The price per square foot increased from $179 to $181, which is the highest since May 2024.

 

According to Freddie Mac's Primary Mortgage Market Survey, the average 30-year mortgage rate decreased from 6.92 percent in June 2024 to 6.82 percent in June 2025. When combined with the median home price, the typical monthly principal and interest mortgage payment essentially remained flat, dipping slightly from $1,826 in June 2024 (assuming a 20 percent down payment) to $1,811 as of June 2025.

Houston market Comarision

June Monthly Market Comparison-HAR Report

 

The Greater Houston housing market saw continued growth for the second month in a row. Total home sales rose 10.4 percent above where they were last June. This increase in sales volume was matched by a rise in total dollar volume, which was up 16.4 percent to $4.3 billion.

 

Active listings, or the total number of available properties, maintained their upward trend in June, climbing 27.2 percent above last year’s level.

 

Houston housing market

HAR Report: The luxury segment, comprised of homes $1 million+, experienced a boost in June, with sales 40.6 percent above where they were last year. All other housing segments also saw increased buying activity.

 

“Although the average home price hit a record high in June, it’s important to remember that the median price is a more reliable gauge of market conditions,” said HAR Chair Shae Cottar with LPT Realty. “The fact that the median price was virtually unchanged indicates that prices are holding steady overall. With inventory at record highs and buyer demand on the rise, Houston’s housing market is showing healthy signs of balance.”

 

"While the U.S. housing market has struggled to return to pre-pandemic levels, Houston’s housing sales have trended normal for the past two years, driven by a strong local economy," said HAR Chief Economist Dr. Ted C. Jones. "Home prices, however, are softening

slightly due to the lowest affordability in 40 years and an inventory trending towards the favor of buyers."

 

HAR will publish its June 2025 Rental Home Update on Wednesday, July 16.