
Houston Housing Market Finds Its Balance as Sales Rise and Prices Ease
After a rollercoaster few years in real estate, the Greater Houston housing market appears to be finding its rhythm again. The latest report from the Houston Association of Realtors (HAR) shows that both sales and inventory are rising, while prices have begun to moderate—offering a sign of balance for buyers and sellers alike.
Buyers Are Returning to the Market
More families are stepping back into the market as mortgage rates ease slightly and confidence improves. In September, single-family home sales climbed 5.3% year-over-year, marking the fifth straight month of growth.
A total of 7,399 homes changed hands across Greater Houston, and pending sales—homes under contract—rose an impressive 11.2%, reflecting strong demand heading into fall.
“The past few months have brought lower mortgage rates, and it has helped boost buyer confidence,” said HAR Chair Shae Cottar of LPT Realty. “We are mindful that economic uncertainty and the current government shutdown could impact the market in the weeks ahead—particularly since new National Flood Insurance Program policies cannot be issued right now. Even so, I believe the market is heading into the final months of 2025 on more balanced footing.”
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More Homes to Choose From
Buyers are seeing more choices than they have in years. Active listings rose nearly 25% from a year ago to 59,876 properties, giving the region a 5.2-month housing supply—the highest level in several years and just above the national average.
While homes are still selling quickly, the average Days on Market (DOM) increased slightly to 55 days, up from 52 last September. That means buyers have a bit more breathing room to explore listings and make informed decisions before submitting offers.
Prices Cool After Pandemic Peaks
After record-setting highs in recent years, Houston home prices are beginning to settle into a more sustainable range.
The median single-family home price in September dipped 2.1% to $327,000, the lowest since February, while the average price rose 2.0% to $421,655, thanks to an uptick in luxury sales.
Homes priced between $250,000 and $499,000 made up more than half of all local sales, though that segment saw a slight decline in activity. Meanwhile, homes under $250,000 and those above $1 million both posted strong growth, signaling renewed interest at both ends of the market.

For the typical buyer, lower mortgage rates and moderating prices mean improved affordability. According to Freddie Mac, the monthly principal and interest payment for a median-priced home dropped by more than $140 since May, offering some much-needed relief to households watching their budgets closely.
At the same time in late September 2024, the 30-year fixed mortgage rate averaged around 6.08%, as reported by Freddie Mac. In contrast, current rates in September 2025 have been in the mid-6 percent range, with recent weekly benchmarks from Freddie Mac floating between 6.26% and 6.50%, and as of early October 2025, the rate stood at 6.34%.
The change reflects some easing compared to earlier months this year, though rates remain well above the lows seen in previous market cycles.
Townhomes and Condos Hold Steady
Houston’s townhome and condominium market also experienced a lift in September, with sales up 4% year-over-year and 414 units sold. Prices trended downward slightly, with the median price at $230,000 and the average at $273,890—making attached homes a more budget-friendly option for many buyers entering the market.
Inventory in this category expanded to an 8.2-month supply, up from 5.7 months a year ago, giving buyers a wider range of choices than in recent years.
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A Healthier Market on the Horizon
The overall picture shows a market in motion but with steadier footing than before.
- Total property sales: 8,686 (up 5%)
- Total dollar volume: $3.5 billion (up nearly 7%)
- Single-family home inventory: 5.2 months (up from 4.3)
- Active listings: 59,876 (up 24.7%)
While national economic concerns and policy delays could create short-term uncertainty, the data suggests that Houston’s housing market is heading into late 2025 with stronger balance and renewed confidence.
Stay tuned to My Neighborhood News for continued coverage of the Houston housing market, including upcoming reports on rental trends, neighborhood developments, and community growth across Greater Houston.
