The Houston housing market is demonstrating notable stability compared to national trends, with single-family home sales rising 3.7% over the past year while existing home sales nationwide fell 3.6%, according to a report from the Houston Association of Realtors. Pending home sales in the metro area surged over 12% from a year ago, signaling continued buyer interest despite broader economic headwinds.
However, median home prices in Houston dipped 1.5% to $330,000, and days on market increased by five days to 67. Affordability has improved in 17 of the last 20 months, according to Joe Huber of Alchemist Real Estate. "That news alone lends a great deal of optimism to the market," Huber said, noting moderation in specific areas like Katy, where home prices are down about $12,000 from a year ago due to buyers bidding up prices amid limited inventory.
The last "normal" year for Houston home sales was 2019, before the COVID-19 pandemic. Last month, sales totaled 7,644 units, a 2% increase over 2019, indicating a more stable market compared to the volatile national landscape. Nationally, existing home sales in 2025 were 24% lower than 2019, approaching a 30-year low after peaking in 2021.
Factors limiting home sales include elevated mortgage rates, inflation, energy prices, poor consumer confidence, and ongoing wars. Raymond Campbell of Houston Home Buyers stated, "The Houston housing market has been a stable part of the Greater Houston economy, and we expect it will slowly gain steam once the Iran war ends and there are declines in mortgage rates and energy prices."
Inventory in the Greater Houston area rose 8.7% year-over-year to a 4.7-month supply, slightly above the 4.5 months from a year ago and higher than the national level of 3.8 months. The townhome and condominium market continues to struggle, with inventory swelling to 8.2 months, up from 6.8 months, as sales rose only slightly and median prices fell over 4%.
Nationally, one-third of all sellers have reduced their prices to close a sale, one of the highest percentages on record, according to data aggregators. The Sun Belt region saw the most price cuts, with Austin leading at 55%, followed by Dallas at 47%, and Tampa and Fort Lauderdale at 45%. Experts attribute this to high mortgage rates, low consumer confidence, and a competitive rental market.
"It is spring in Houston, and that is the most active part of the year for home sellers and home buyers. Summer is also active because the kids are out of school," Campbell added. "The Iran war will end one way or another, and real estate will once again be on the minds of Houston home buyers."
