Greater Houston Housing Market Levels Out in 2025 with More Homes, Stable Prices, and Steady Sales
After several years of unpredictable highs and lows, the Houston housing market hit a more comfortable stride in 2025. Homebuyers had more options, prices leveled out, and sales remained strong across the region, according to the latest annual report from the Houston Association of Realtors (HAR).
The year ended on a solid note, with over 104,000 total properties sold—a 2.3% increase from 2024—and a total of $42.9 billion in real estate volume, up 4.5% from the year before. Single-family homes led the way, with 88,634 homes sold in 2025, a 3.8% bump compared to 2024.
“The past year brought a welcome sense of balance back to the Houston housing market,” said HAR Chair Theresa Hill. “Buyers had more choices, prices were more stable and homes continued to sell at a steady pace.”
Buyers Had More to Choose From
One of the biggest shifts in 2025 was the number of homes on the market. Listings increased steadily throughout the year, hitting a high point in July with nearly 39,500 active listings. That gave buyers more breathing room and helped ease the intense competition seen in recent years.
The supply of homes—also known as “months of inventory”—climbed to 5.5 months in July, the highest it’s been in more than a decade. That number settled at 4.5 months by December, still higher than the national average of 3.3 months.
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Prices Held Steady
Unlike the rapid price increases seen in 2021 and 2022, home prices in 2025 mostly stayed put. The median price for a single-family home was $334,990, virtually unchanged from 2024. The average price inched up less than 1%, reaching $426,558.
Even in Houston’s luxury market, where homes priced over $500,000 saw a strong year, the overall pricing trend was relatively stable. June marked the high point for average price at $449,561.
Affordability Showed Signs of Improvement
With mortgage rates beginning to ease and home prices flattening out, buying a home became a bit more manageable. Compared to December 2024, a buyer in December 2025 would save about $87 a month on their mortgage payment, assuming a 20% down payment. That adds up to more than $1,000 saved per year.
“We’re selling just as many homes 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.”
December Closed Out the Year on a High Note
The final month of the year continued the steady trend. Here’s how the December 2025 numbers looked:
- 8,707 total properties sold (up 1.2% from December 2024)
- $3.6 billion in sales volume (up 2.1%)
- 7,456 single-family homes sold (up 2.8%)
- Average price: $425,535 (up 0.8%)
- Median price: $335,000 (up 0.3%)
- Days on Market: 64 days (up from 59 last year)
- Active listings: 52,727 (16.5% more than last December)
More homes on the market meant buyers had time to shop around, and sellers had to price more competitively. Homes took a little longer to sell, spending an average of 64 days on the market, compared to 59 days the year before.
What Sold in December
Sales gains were seen in a wide range of price points, especially in:
- $150K–$249K range: +9.1%
- $500K–$999K range: +13.4%
- $100K–$149K range: +8.0%
Sales of homes priced under $100,000 were down, as were those over $1 million, showing a shift toward more mid-range purchases.
Existing home sales were strong in December, with nearly 4,900 closings, an 8.9% increase from the previous year. The average price for existing homes rose to $439,557, while the median price came in at $330,000.
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Townhomes and Condos See Modest Rebound
While the townhome and condo market has struggled over the past few years, it saw a nice boost at the end of 2025.
In December:
- 422 units sold, up 5.5%
- Average price: $269,502 (up 0.8%)
- Median price: $224,500 (down 4.4%)
- Inventory: 7.1 months, up from 5.3
This marked the biggest year-over-year jump in townhome/condo sales since January 2025.
At a Glance: Houston Real Estate 2025
- 3.8% more single-family homes sold
- $42.9 billion in total real estate sold
- Median home price: flat at $334,990
- More listings, more options for buyers
- Improved affordability for most of the year
- December ended with strong sales and steady prices
As we move into 2026, local real estate experts believe Houston’s housing market is well-positioned for continued stability and growth. For more updates and market data, visit HAR.com.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
