Houston Housing Market 2026: Inventory Rises, Prices Adjust, and Buyers Gain Leverage in January
For homeowners, buyers, and real estate professionals across Greater Houston, January 2026 delivered something the market hasn’t consistently offered in years: balance.
According to the Houston Association of Realtors (HAR) January 2026 Housing Market Update, inventory expanded, homes stayed on the market longer, and pricing showed mixed movement. For families considering a move, first-time homebuyers watching mortgage rates, or sellers weighing when to list, the shift signals a market that is steady—but no longer overheated.
Single-family home sales dipped just 1.0 percent year-over-year, with 4,999 homes sold compared to 5,047 in January 2025. While that marks the fewest January transactions since 2023, pending sales climbed 8.5 percent, suggesting that buyer demand remains intact.
In short: buyers are still buying—but they’re taking their time.
What This Means for Houston Homeowners and Buyers
One of the most noticeable changes is inventory growth. Active listings of single-family homes rose 16.6 percent to 34,570 available properties. Months of inventory increased to 4.7 months, up from 4.2 months last year. For comparison, the National Association of Realtors reports a national average of 3.3 months.
That increase translates to options.
Homes are now averaging 66 days on market, up from 61 days a year ago and the longest stretch since February 2020. For buyers across Houston neighborhoods—from The Woodlands and Katy to Cypress, Sugar Land, and inner-loop communities—that additional time can mean less pressure and more thoughtful decision-making.
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For sellers, it signals the need for competitive pricing and strong presentation.
HAR Chair Theresa Hill with Compass RE Texas, LLC - Houston, said the shift is part of a broader normalization.
“Right now, buyers have more choices and a bit more time to make decisions, while sellers are adjusting to a market that’s becoming more balanced,” Hill said. “With rates expected to ease a little this year, buyers who have been waiting on the sidelines may start to feel more confident and enter the market. That should help maintain demand and create additional opportunities for sellers throughout the year.”
Houston Home Prices: Mixed but Stabilizing
January home prices reflected that recalibration.
- Median single-family home price: $322,045 (down 0.9% year-over-year)
- Average single-family home price: $416,722 (up 2.8%)
- Average price per square foot: $171
The median price fell to its lowest level since January 2024, while the average price rose largely due to stronger activity in the luxury home market.
Homes priced at $1 million and above—representing just 4.2 percent of all listings—saw sales jump 15.5 percent year-over-year. Meanwhile, the $250,000 to $499,999 range, which accounts for more than half of all Houston home sales, slowed 5.1 percent.
For many Houston-area residents, affordability remains top of mind. There was measurable improvement.
Assuming a 20 percent down payment on a median-priced home, the average monthly mortgage principal and interest payment in January 2026 was $1,561.26, compared to $1,722.81 in January 2025. That’s a monthly savings of $161.55—or nearly $2,000 annually.
Houston housing affordability has improved in 15 of the past 18 months, offering some relief to buyers who felt priced out during previous peak cycles.
Sales by Price Segment: Where Activity Is Moving
Broken down by housing segment, January 2026 single-family home sales performed as follows:
- $1 - $99,999: increased 7.1% (75 transactions)
- $100,000 - $149,999: increased 6.6% (129 transactions)
- $150,000 - $249,999: increased 4.7% (1,029 transactions)
- $250,000 - $499,999: decreased 5.1% (2,761 transactions)
- $500,000 - $999,999: decreased 0.5% (795 transactions)
- $1 million and above: increased 15.5% (209 transactions)
Existing single-family home sales remained flat, with 3,422 closings compared to 3,433 a year earlier. The median price held steady at $320,000, while the average price rose 3.8 percent to $428,152.
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Townhomes and Condos: A Slower Start
The townhome and condominium market experienced a sharper slowdown.
Sales declined 25.9 percent year-over-year, with 269 units sold compared to 363 last January. The median price dropped 11.9 percent to $185,000—the lowest level since February 2021—while the average price fell 8.6 percent to $226,343.
Inventory expanded significantly to a 7.6-month supply, up from 5.5 months last year. For buyers seeking lower-maintenance living options in Houston’s urban core or suburban communities, that increase could create new negotiating opportunities.
Broader Houston Real Estate Snapshot
Across all property types in Greater Houston:
- Total property sales declined 2.2 percent (6,045 properties sold)
- Total dollar volume dipped 1.6 percent to $2.4 billion
- Active listings rose 15.7 percent to 54,589 properties
While country homes and lots saw more transactions, most other property categories experienced softer activity.
HAR will release its January 2026 Rental Market Update on February 18, offering additional insight into Houston’s broader housing landscape.
What Happens Next in the Houston Real Estate Market?
The early 2026 Houston housing market reflects a transition—not a downturn.
Buyers now have more inventory and slightly improved affordability. Sellers are navigating longer timelines but still benefiting from steady demand. Luxury properties are gaining momentum, while mid-range homes remain competitive but more measured.
For residents considering buying or selling in Houston, Katy, Cypress, Sugar Land, The Woodlands, or other Greater Houston communities, the key takeaway is clarity: the market is adjusting toward equilibrium.
And for many, that’s a welcome development.
Stay tuned to My Neighborhood News for continued updates on the Houston real estate market, mortgage rate trends, and what they mean for your neighborhood.
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.