Houston Area Real Estate Booms in June as Inventory Hits Record High, Luxury Sales Set New Price Benchmarks
The Houston housing market surged in June 2025, setting new records in home inventory and average pricing, fueled in large part by a booming luxury segment and stable buyer demand. According to the latest Houston Association of Realtors (HAR) Housing Market Update, single-family home sales rose 12.5% year-over-year, even as affordability challenges persist nationally.
For buyers, more options are finally on the table. Active listings of single-family homes soared 31.8% compared to June 2024, with 38,713 properties on the market—marking the highest inventory ever recorded by HAR. This uptick in supply helped support a more balanced market as Houston continues to outperform national housing trends.
“Although the average home price hit a record high in June, it’s important to remember that the median price is a more reliable gauge of market conditions,” said HAR Chair Shae Cottar of LPT Realty. “The fact that the median price was virtually unchanged indicates that prices are holding steady overall. With inventory at record highs and buyer demand on the rise, Houston’s housing market is showing healthy signs of balance.”
Record Home Prices Driven by High-End Sales
Luxury home sales—defined as properties priced at $1 million or more—catapulted by 40.6% year-over-year, the largest percentage increase among all housing segments. That surge helped drive the average price of a single-family home to an all-time high of $450,235, up 4.4% from last June. Yet, the median price—a better indicator of general affordability—remained statistically flat at $346,651.
Across all price points, the market remained strong:
- Homes priced $250,000–$499,999 rose 10.6%
- $500,000–$999,999 homes were up 14.2%
- Entry-level homes under $100,000 rose 24%
Pending sales increased 10.1%, and overall property sales rose 10.4% across the region, totaling 9,993 units sold. This increase translated into a 16.4% rise in total dollar volume, reaching $4.3 billion for the month.
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Houston Real Estate Stability Defies National Trends
While the broader U.S. housing market continues grappling with affordability constraints and post-pandemic adjustments, Houston has carved a different path, thanks in part to local economic strength and rising inventory levels.
“While the U.S. housing market has struggled to return to pre-pandemic levels, Houston’s housing sales have trended normal for the past two years, driven by a strong local economy,” said HAR Chief Economist Dr. Ted C. Jones. “Home prices, however, are softening slightly due to the lowest affordability in 40 years and an inventory trending towards the favor of buyers.”
Freddie Mac’s mortgage rate data showed a modest year-over-year dip in 30-year fixed rates, from 6.92% in June 2024 to 6.82% in June 2025. As a result, the typical monthly principal and interest payment decreased slightly, from $1,826 to $1,811, assuming a 20% down payment.
Houston home prices hit new highs in June 2025, with the average at $450,235 Months of Inventory Hits 5.4, Highest in Over a Decade
June also marked the first time since 2012 that months of inventory in Houston reached 5.4, surpassing the national average of 4.6 months, according to the National Association of Realtors. This metric suggests a balanced market, moving away from the seller-favored dynamics of the past few years.
The Days on Market (DOM) for single-family homes ticked up slightly, from 47 to 49 days, indicating that homes are still moving relatively quickly despite the swelling supply.
In the resale market, existing home sales jumped 15.4%, with 6,159 closings. The average price hit another record at $470,784, and the median rose 0.9% to $352,000.
Townhomes and Condos See Softer Demand, Higher Supply
While single-family homes flourished, Houston’s townhome and condo market continued to show signs of strain. Sales dropped 4.4% year-over-year, with only 483 units sold. Prices dipped as well—the average fell 3.3% to $261,702, and the median dropped 4.6% to $230,000.
Inventory in this segment rose sharply, with 3,402 active listings and months of inventory growing to 8.0—the highest since September 2011. This suggests that buyers seeking attached housing will find increased negotiating power.
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Outlook: Momentum Builds as Buyers Regain Options
June’s numbers reinforce Houston’s reputation as a resilient and adaptive housing market. As inventory continues to rise and prices hold steady—despite record averages being set in the luxury market—buyers and sellers alike appear to benefit from a more balanced environment.
HAR is set to release its June 2025 Rental Home Update on July 16, offering a closer look at leasing trends across Greater Houston.
For ongoing coverage of Greater Houston real estate trends, stay tuned to My Neighborhood News.
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.
