HAR.com Says Houston Homebuyers Are Signing Contracts at the Fastest Pace in Four Years: What It Means for Local Communities
As summer begins across Greater Houston, a notable trend is emerging in the local housing market: more buyers are making offers and signing contracts than at any point in the past four years.
According to the Houston Association of Realtors (HAR) May 2026 Housing Market Update, pending sales of single-family homes climbed 5.8% year over year to 9,172 contracts, the highest May total since 2022. While completed home sales dipped slightly compared to last year, the surge in pending transactions suggests many families are still actively pursuing homeownership across Houston-area communities.
For homeowners, prospective buyers, real estate professionals, and neighborhoods throughout the region, the latest numbers offer an encouraging sign that housing demand remains resilient even as the market continues to adjust from the rapid pace of recent years.
More Buyers Are Entering the Market
The increase in pending sales is significant because it provides a glimpse into future activity. Homes under contract today often become closed sales in the weeks ahead.
"The increase in contract activity tells us prospective buyers remain confident in our local housing market," said HAR Chair Theresa Hill with Compass RE Texas, LLC - Houston. "People are continuing to make moves for life reasons, and many are finding that today's market offers more flexibility and more choices than we've seen in recent years."
That growing flexibility may be one reason buyers are returning. Active listings across the Greater Houston area increased slightly to 57,592 properties, while single-family home inventory remained steady at 5.1 months. Compared to the highly competitive seller's markets seen during the pandemic housing boom, today's market is offering buyers more opportunities to shop, compare, and negotiate.
For families searching for homes in communities throughout Cypress, Katy, Bridgeland, Fairfield, Towne Lake, The Woodlands, Sugar Land, and other Greater Houston neighborhoods, a stable inventory level means there are generally more homes available than there were just a few years ago.
Affordability Continues to Improve
One factor helping fuel buyer activity is improving affordability.
Mortgage rates averaged 6.44% in May, down from 6.82% a year ago, according to Freddie Mac. Combined with relatively stable home prices, that decline has helped reduce monthly housing costs for many buyers.
HAR reports that a purchaser buying a median-priced Houston-area home would save more than $60 per month in principal and interest payments compared to a year earlier, assuming a 20% down payment.
The organization notes that housing affordability has improved in 19 of the past 22 months, providing some relief after several years of elevated borrowing costs and rapidly rising home values.
Luxury Homes Continue to Lead the Market
While overall single-family sales declined 3.2% year over year to 8,631 homes sold, the luxury segment continued to outperform the rest of the market.
Sales of homes priced at $1 million and above increased 10.1% compared to May 2025, making it the strongest-performing price category in the region.
At the same time, homes priced between $150,000 and $249,999 also posted gains, increasing 2.7%.
Most other price segments experienced modest declines, reflecting a market that remains active but increasingly selective as buyers weigh affordability, location, and financing options.
Home Prices Remain Stable
Despite shifting market conditions, Houston home values have remained remarkably steady.
The median single-family home price was essentially unchanged at $340,000, while the average home price rose 2.3% to $447,301, the highest average price recorded since June 2025.
For many homeowners, stable pricing can provide reassurance that property values continue to hold firm while avoiding the dramatic fluctuations seen in some other major metropolitan markets.
Homes are also spending slightly longer on the market, with average Days on Market increasing from 51 days to 54 days year over year. That extra time can give buyers more room to make informed decisions without the intense pressure that characterized the market just a few years ago.
Townhomes and Condominiums Offer Additional Options
Houston's townhome and condominium market delivered mixed results in May.
Sales declined 4.3% to 464 units, but prices continued to rise. The average townhome or condominium price increased 6.7% to $283,293, while the median price rose 3.6% to $230,000.
Meanwhile, active listings grew 6.0%, creating additional opportunities for buyers seeking lower-maintenance housing options or entry points into homeownership.
What Happens Next?
While total property sales across Greater Houston declined 3.1% and total dollar volume slipped 1.8% to $4.3 billion, the rise in pending sales may signal stronger activity ahead as contracts convert into completed transactions over the coming months.
For residents considering a move, the current environment presents a combination many buyers have been waiting for: more inventory, stable pricing, slightly lower mortgage rates, and less competition than during the market's peak frenzy.
As communities across Greater Houston continue to grow, the latest HAR data suggests that buyers remain confident in the region's long-term outlook—an encouraging sign for neighborhoods, schools, businesses, and homeowners alike.
HAR is scheduled to release its May 2026 Rental Market Update on June 17, providing another look at housing trends shaping the Greater Houston area.
Stay tuned to My Neighborhood News for continued coverage of the Houston housing market and the trends affecting local communities across the region.
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.
