Houston-Area Home Sales Drop 14.9% in October 2026 as Housing Supply Reaches 14-Year High
For anyone hoping to buy a home in Greater Houston, there's some encouraging news this fall. Homes are sitting on the market longer, buyers have more properties to choose from, and prices have come down in some segments of the market. But for homeowners hoping to sell, the picture is a little different.
The Houston Association of Realtors (HAR) released its October 2026 Housing Market Update on November 11, reporting a nearly 15% drop in single-family home sales compared to last October. At the same time, the region's housing supply reached its highest level since 2012.
It's a noticeable change for the Houston real estate market, particularly for families in growing communities like Katy, Cypress, Fulshear, Richmond, Sugar Land, Tomball, Spring and The Woodlands, where buying or selling a home often comes down to timing, affordability and finding the right fit.
Fewer Houston Homes Are Selling, but Prices Are Holding Up
Across Greater Houston, 6,348 single-family homes sold in October, compared to 7,458 during the same month last year. That's a 14.9% decline and the slowest October for home sales in the past decade.
Still, it's worth putting those numbers into perspective. Through the first 10 months of 2026, Houston-area home sales remained within 2% of last year's pace, thanks in part to stronger activity during the spring and early summer. Over the past 12 months, 87,433 single-family homes have sold, compared to 85,685 in 2019, before the pandemic reshaped the housing market.
Home prices have also been relatively steady, although there are signs of some relief for buyers.
The average single-family home sold for $421,100 in October, virtually unchanged from $421,501 a year earlier. The median sales price, however, fell 3% to $320,000, its lowest level since January 2024. It's also the lowest October median since 2021, down from an October high of $335,000 in 2024.
For buyers who have been priced out of their preferred neighborhoods or have put their plans on hold, that shift may be welcome news.
"Consumers are paying close attention to the economy and their household budgets, so it is understandable that some buyers are taking more time before purchasing a home," said HAR Chair Theresa Hill with Compass RE Texas, LLC - Houston. "We typically see activity ease as the year winds down, but buyers who are still looking may have more time to find a home that fits their needs and budget."
More Homes for Sale Means Buyers Have Room to Be Selective
Perhaps the biggest change in Houston's housing market is the growing number of homes available.
At the end of October, there were 40,253 single-family homes listed for sale across Greater Houston, a 6.8% increase from the 37,688 available a year ago.
That amounts to a 5.5-month supply of homes, up from 5.1 months last October and unchanged from September. It's the largest supply Houston has seen in 14 years, and slightly higher than the national inventory of 4.8 months reported by the National Association of Realtors.
Simply put, buyers have more options than they've had in years.
That doesn't mean every desirable home is suddenly sitting unsold or that sellers are slashing prices. But it does mean buyers may have more opportunities to compare properties, visit different neighborhoods and think through a purchase without feeling quite as rushed.
Homes took an average of 59 days to sell in October, the same as last year. Meanwhile, the number of pending sales, meaning homes under contract but not yet closed, dropped 17.6% to 6,445.
For homeowners considering putting their houses on the market, the added competition makes realistic pricing and home presentation especially important. With more choices available, buyers can afford to be selective about a property's condition, location and price.
Lower Home Prices Don't Necessarily Mean Lower Monthly Payments
There's another piece of the affordability puzzle that Houston buyers can't ignore: mortgage rates.
According to HAR, the average mortgage rate in October was 7.33%, up from 6.25% a year ago, though still below the 7.62% recorded in October 2023.
For someone purchasing a median-priced Houston home, the estimated monthly principal and interest payment was $1,760.28. That's $134.79 more than a year ago, despite the decline in median home prices.
It's still less than the $1,845.03 estimated monthly payment recorded in October 2023, but for families balancing housing costs with groceries, childcare, transportation and other expenses, the difference matters.
Those mortgage estimates also don't include property taxes, homeowners insurance or HOA fees, all of which can add substantially to the cost of owning a home in Greater Houston.
"Affordability remains a challenge for homebuyers, and the possibility of a quarter-point interest rate increase by the Federal Reserve before the end of the year could add further pressure to the housing market," said HAR Chief Economist Ted C. Jones.
Which Houston Homes Are Selling, and Which Aren't?
October's slowdown was felt across nearly every price range, including the mid-priced homes many Houston-area families are shopping for.
Homes priced between $250,000 and $499,999 accounted for the largest number of sales, with 3,368 transactions, but sales in that category were down 16.8% from last October.
Homes priced between $500,000 and $999,999 saw a similar decline of 16.9%, with 1,061 sales. Even the luxury market slowed, with sales of homes priced at $1 million or more falling 11.6% to 291 transactions.
In the lower price ranges, 1,339 homes priced between $150,000 and $249,999 sold, a 9.4% decrease. Sales of homes priced from $100,000 to $149,999 dipped 1% to 191, while the under-$100,000 category was the only one to see an increase, rising 2.1% to 97 sales.
Existing homes, excluding new construction, also saw fewer buyers. Sales declined 10.2%, with the average sales price edging down to $428,790 and the median falling 4.5% to $315,000.
For homeowners, these figures are a reminder that the market isn't moving at the same pace it was a few years ago. A home that might have attracted several offers quickly in a hotter market may now require more patience, depending on its neighborhood and price.
Townhomes and Condos Are Feeling the Slowdown, Too
The shift isn't limited to single-family homes.
Townhome and condominium sales across Greater Houston dropped 23.5% in October, with 336 properties sold compared to 439 a year earlier.
The average sales price increased 5.8% to $263,413, while the median price decreased 3.7% to $197,500.
There were 3,586 active townhome and condo listings, up 5.6% from last year. Inventory climbed from 8.2 months to 9.4 months, and properties spent an average of 65 days on the market.
For those considering a townhome or condominium as a first home, a downsizing option or a lower-maintenance lifestyle, the larger selection may be worth exploring. Buyers should still factor in association dues and other ownership costs when comparing properties.
What Does This Mean for Houston Homeowners and Families Planning a Move?
Looking at the market as a whole, Greater Houston recorded 7,485 property sales across all housing types in October, down 15.1% from the year before. Total sales volume fell 14.6% to $3.06 billion, while active listings across all property types climbed 4.8% to 61,965.
For families hoping to buy, the good news is that there's more to choose from, and some asking prices may be more negotiable than they were when inventory was tighter.
For those preparing to sell, the challenge is standing out among a growing number of listings. Buyers have alternatives, and sellers may need to adjust their expectations about pricing and how quickly a property will sell.
And for homeowners who aren't planning to move anytime soon, there's no reason to assume that a regional drop in the median sales price means their own home has lost the same percentage of its value. Neighborhood-level sales, property condition and local demand tell a much more specific story.
That distinction is especially important throughout Greater Houston, where housing markets can look quite different from one subdivision to the next.
What's Ahead for Houston's Housing Market in 2027?
As the year winds down, buyers and sellers will be watching mortgage rates, home prices and whether the recent slowdown carries into 2027.
October's decline in pending home sales suggests fewer purchases may be headed toward closing in the coming weeks. But with more homes available and prices easing in some categories, buyers who have been waiting for a better opportunity may find the current market worth another look.
HAR will release its October 2026 Rental Market Update on Wednesday, November 18, providing another look at the local housing picture.
Residents can explore additional data through the Houston Association of Realtors or review the October 2026 Monthly Activity Snapshot.
Whether a family is searching for its first home, preparing to sell a longtime residence or simply keeping an eye on property values, Houston's changing housing market is worth following. The latest numbers show that buyers have more options, but finding a home that fits the household budget remains a challenge.
Stay connected with My Neighborhood News for continuing updates on Greater Houston home prices, real estate trends and new residential developments affecting local communities.
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.
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