Houston’s Housing Market Continues Positive Momentum in October as Prices Level Out and Inventory Expands
As cooler weather rolled in, Houston’s real estate market kept the heat on, notching its sixth consecutive month of year-over-year growth in home sales. According to the Houston Association of Realtors’ October 2025 Housing Market Update, the local housing scene is trending toward balance—welcoming news for both buyers and sellers across the Greater Houston area.
Single-family home sales climbed 3.2% year-over-year, with 7,419 homes sold this October compared to 7,187 last year. This bump in transactions, alongside stable home prices and rising inventory, underscores a healthier, more negotiable market for buyers—a stark contrast from the bidding wars and soaring prices of the past few years.
“We’re seeing encouraging signs that Houston’s housing market is normalizing,” said Shae Cottar, 2025 Chair of the Houston Association of Realtors and broker with LPT Realty. “Prices have softened, inventory is up, and mortgage rates are coming down—all of which are giving buyers more room to breathe. The frenzied pace of recent years has eased, and the market has leveled out, ultimately benefiting both buyers and sellers.”
Houston Outpaces National Market Trends
While many metro areas nationwide continue to struggle, Houston is charting a different course. Single-family home sales in the Bayou City are now exceeding pre-pandemic levels—up 3.2% compared to October 2019, and 2.6% year-to-date. By contrast, U.S. home sales are still down more than 21% compared to the same period in 2019, according to national housing data.
“Unlike the U.S. housing market, which lags pre-pandemic home sales volumes, Houston has returned to a normal market that is growing,” said Dr. Ted C. Jones, HAR Chief Economist.
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The average price for a single-family home in the Houston area held steady at $423,955, while the median price dipped slightly to $330,000—marking the seventh consecutive monthly decline in the median. This slight correction is helping restore affordability, with the average principal and interest payment falling by over $55 per month year-over-year, per Freddie Mac.
Expanded Inventory Creates Opportunities for Buyers
Houston’s housing inventory continued to open up, giving buyers more options. Single-family home inventory hit 5.2 months in October 2025, up from 4.4 months a year earlier and higher than the national average of 4.6 months, as reported by the National Association of Realtors. Active listings jumped 25.7% year-over-year to 38,316 properties.
The average days on market also lengthened slightly from 52 to 59 days, another sign of a less rushed and more buyer-friendly environment.
Pending single-family sales—a forward-looking indicator of future closings—surged 13.1% year-over-year, a signal that buyer demand remains strong heading into the winter months.
“These newly signed contracts typically become closings in the next 30 to 60 days indicating continued growth in the Houston housing market,” noted Jones.
A Look at the Housing Segments Across Greater Houston
Sales were strongest in the $100,000–$149,999 price bracket (up 27%) and in luxury homes priced at $1M and above (up 10.8%). Meanwhile, homes in the $250,000–$499,999 range remained flat year-over-year, reflecting steady demand in the most active segment of the market.
Single-Family Segment Performance in October 2025:
- $100K–$149,999: +27.0% (193 homes)
- $150K–$249,999: +9.1% (1,478 homes)
- $500K–$999,999: +3.1% (1,277 homes)
- $1M+: +10.8% (329 homes)
Existing single-family homes also saw a 1.2% increase in sales with 5,103 closings. The average sales price for these homes ticked up slightly to $434,555, while the median price held steady at $330,000.
Multi-Family and Condo Market Shows Mixed Results
Multi-family properties saw standout growth this month, with sales up a remarkable 32.8% compared to last year—adding strong momentum to Houston's broader real estate recovery. However, the townhome and condominium segment cooled in comparison. Sales dropped 9.3% year-over-year, with both average and median prices falling by double digits.
Inventory for townhomes and condos expanded to 8.3 months, up from 5.8 months in October 2024, reflecting a more sluggish demand curve in that category.
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Overall Market Snapshot – October 2025
- Total property sales (all types): 8,768 (up 1.6% YoY)
- Total dollar volume: $3.5 billion (up 1.9%)
- Median single-family price: $330,000 (down 1.5%)
- Average single-family price: $423,955 (flat)
- Single-family months of inventory: 5.2 months (up from 4.4)
- Townhome/condo median price: $205,000 (down 11.9%)
- Townhome/condo average price: $251,090 (down 10.0%)
What’s Next for Houston Real Estate?
HAR is set to release its October 2025 Rental Market Update on Wednesday, November 19, providing further insight into rental trends across Houston’s evolving housing landscape.
As 2025 winds down, the Houston housing market remains a bright spot amid national uncertainty. For local buyers and sellers alike—from Cypress to Katy, Spring Branch to Sugar Land—the continued balance in prices, inventory, and interest rates makes this one of the most favorable real estate climates in recent memory.
For the full HAR October 2025 Housing Market Update and downloadable snapshot report, visit HAR.com.
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.
