Houston housing market

HOUSTON — (February 11, 2026) HAR report — The Houston housing market kicked off the new year with familiar signs of adjustment, as inventory expanded, homes spent more time on the market and demand remained steady. 

 

According to the Houston Association of Realtors' January 2026 Housing Market Update, single-family home sales declined 1.0 percent from a year earlier, with 4,999 homes sold compared to 5,047 in January 2025, marking the fewest transactions recorded since January 2023. Pending sales rose 8.5 percent year-over-year, signaling continued buyer interest.

 

Home prices were mixed during January. The median home price edged down to $322,045, its lowest level since January 2024, when it stood at $320,000. The average price rose 2.8 percent to $416,722, driven largely by more activity in the luxury market.

 

The luxury segment – comprised of homes priced at $1 million and above and representing just 4.2 percent of all homes on the market – was the strongest-performing sector, with transactions up 15.5 percent year-over-year. Activity slowed in the $250,000 to $499,999 price range, which accounted for more than half of all home sales in January.

Houston Real Estate Highlights

Houston Real Estate Highlights for December/Full-Year 2025-HAR Report

  • In 2025, sales of single-family homes increased 3.8% with 88,634 units sold compared to 85,373 in 2024.

  • Total property sales for full-year 2025 were up 2.3% with 104,325 units sold while the total dollar volume increased 4.5% to $42.9 billion.

  • Single-family home sales increased 2.8% year-over-year.

  • Days on Market (DOM) for single-family homes went from 59 to 64 days.

  • The single-family median price was statistically flat at $335,000.

  • The single-family average price edged up by 0.8% to $425,535.

  • Single-family home months of inventory expanded to a 4.5-months supply, up from 4.0-months a year ago.

  • Townhome and condominium sales rose 5.5% with 422 units sold. The median price declined 4.4% to $224,500, and the average price increased 0.8% to $269,502.

  • Total property sales increased 1.2% with 8,707 units sold.

  • Total dollar volume was up 2.1% to $3.6 billion.

Houston Townhouse/condo for rent/sale

Townhome/Condominium Update-HAR Report

 

Despite a rollercoaster year for the townhome and condo market, demand picked up in December, with closings climbing 5.5 percent year-over-year. It marked the largest year-over-year increase in sales since January 2025. A total of 422 units were sold compared to 400 during the same time last year. The average price edged up by 0.8 percent to $269,502, while the median price slid 4.4 percent to $224,500.

Houston housing days in the market

HAR Report: Days on Market, or the actual time it took to sell a home, increased from 59 to 64, which is the highest since February 2020 when homes spent an average of 68 days on the market.

 

Months of inventory expanded from a 4.0-months supply last December to 4.5 months. The current national supply stands at 3.3 months, as reported by the National Association of Realtors.

 

Broken out by housing segments, single-family home sales performed as follows:

  • $1 - $99,999: decreased 5.6 percent (85 transactions)

  • $100,000 - $149,999: increased 8.0 percent (176 transactions)

  • $150,000 - $249,999: increased 9.1 percent (1,350 transactions)

  • $250,000 - $499,999: increased 0.5 percent (4,221 transactions)

  • $500,000 - $999,999: increased 13.4 percent (1,313 transactions)

  • $1M and above: decreased 0.3 percent (310 transactions)

HAR’s breakdown of existing single-family home sales shows December closings rose 8.9 percent year over year, with 4,885 homes sold versus 4,484 in December 2024. The average sales price increased 2.5 percent to $439,557, while the median price was up 1.5 percent to $330,000.

December Monthly Market Comparison

December Monthly Market Comparison-HAR Report

 

The Houston housing market wrapped up 2025 on a positive note. Total property sales rebounded in December, increasing 1.2 percent year-over-year while total dollar volume rose 2.1 percent to $3.6 billion. The total number of available properties was 16.5 percent ahead of the December 2024 volume with 52,727 active listings.

Houston housing market

HAR Report: Affordability improved in 10 out of 12 months when comparing 2025 to 2024, assuming a 20 percent down payment on a median-priced home with monthly interest rates as reported by Freddie Mac. The typical homebuyer in December 2025 saw an $87.72 reduction in their monthly principal and interest payment compared to a consumer purchasing the same median-priced home in December 2024

Houston housing market

HAR Report: In 2025, the average home price rose 0.9 percent year-over-year to $426,558. Strong demand in the luxury market pushed the average price to a record high of $449,561 in June. 

 

“We’re selling just as many homes in the Houston area now as we did in 2019, which shows how far this market has come,” said HAR Chief Economist Dr. Ted C. Jones. “Houston is one of the few markets in the country that’s truly back to normal. The recovery a lot of people have been waiting for showed up in our region in 2025, and I think we’ll continue to see sales increase in 2026.”

Houston housing market

HAR Report: As inventory expanded, home prices moderated. The median home price was flat year over year at $334,990, posting modest increases only in January (1.6 percent) and March (1.5 percent), with no additional gains recorded in other months. This marked a notable shift from the rapid price growth of prior years and contributed to a healthier market environment. 

 

In 2025, the average home price rose 0.9 percent year-over-year to $426,558. Strong demand in the luxury market pushed the average price to a record high of $449,561 in June. 

 

2025 Annual Housing Market Comparison

2025 Annual Housing Market Comparison-HAR Report

 

Easing interest rates and a return to pre-pandemic market conditions shaped the Houston housing market in 2025. Sales activity remained consistent for most of the year, with only three months — February, April and November — posting year-over-year declines. The summer months were especially strong, helping sustain momentum and reinforce confidence among both buyers and sellers.