Real Estate

Greater Houston homebuyers encountered more choices and less urgency in August, while sellers continued to benefit from prices that remained relatively stable despite a slowdown in sales.

The Houston Association of Realtors reported 7,100 single-family home sales during August 2026, an 11.5% decline from the same month last year. At the same time, the number of active single-family listings rose slightly to 38,947, keeping the region’s housing inventory at a 5.3-month supply.

Taken together, those numbers point to a Houston housing market that is no longer moving at the frenzied pace seen earlier in the decade. Buyers generally have more time to compare properties, consider neighborhoods and negotiate the terms of a purchase. Sellers, meanwhile, are competing for attention but have not experienced a sharp marketwide drop in home values.

“Balance remains the defining characteristic of Houston's housing market,” said HAR Chair Theresa Hill with Compass RE Texas, LLC - Houston. “Buyers have more options and more time to make decisions, while sellers continue to benefit from relatively stable prices. That's a healthier environment for consumers and a positive sign for the long-term strength of our market.”

Are Houston Home Prices Falling?

Houston home prices were mixed in August, depending on which measure is used.

The median price of a single-family home declined 1.5% from August 2025 to $330,000—a year-over-year reduction of $5,000. The average sales price, however, increased 1.2% to $426,760.

That difference matters. The median represents the midpoint of all sales, while the average can be influenced by a greater number of high-priced transactions. Sales of homes priced at $1 million and above declined by just 2.1%, a smaller drop than most other price ranges.

Existing single-family homes recorded a median price of $330,000, down 2.9% year over year, and an average price of $433,016, down 1%.

How Much Housing Inventory Is Available in Houston?

Greater Houston had 38,947 active single-family listings in August, up 0.5% from one year earlier. The 5.3-month supply of inventory was unchanged year over year and remained above the national supply of 4.6 months reported by the National Association of Realtors.

A 5.3-month supply means that, based on the previous 12 months of sales activity, it would take approximately 5.3 months to sell the homes currently on the market if no new listings were added.

Homes also took slightly longer to sell. The average number of days on the market increased from 52 days in August 2025 to 54 days in August 2026.

For buyers, that additional inventory can translate into a wider selection and more opportunity to evaluate pricing, condition and location. For sellers, it reinforces the importance of setting a realistic asking price and preparing a home to compete with other available properties.

Which Houston Home Price Ranges Saw the Most Activity?

The largest share of August sales occurred between $250,000 and $499,999, where 3,949 homes changed hands. That segment also recorded a 13.7% year-over-year decline.

Single-family home sales by price range included:

• Below $100,000: 110 sales, up 11.1%
• $100,000 to $149,999: 177 sales, down 4.8%
• $150,000 to $249,999: 1,308 sales, down 11.3%
• $250,000 to $499,999: 3,949 sales, down 13.7%
• $500,000 to $999,999: 1,221 sales, down 16.5%
• $1 million and above: 334 sales, down 2.1%

Although August sales were lower than a year ago, HAR reported 88,565 single-family home sales during the most recent 12-month period. That total exceeded the 86,999 sales recorded during all of 2019, the last full year before the pandemic disrupted housing patterns.

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What Are Mortgage Rates Doing to Houston Affordability?

The average 30-year fixed mortgage rate cited by HAR rose to 6.67%, compared with 6.59% one year earlier. However, the $5,000 decline in the median single-family home price resulted in a slight year-over-year reduction in estimated monthly principal and interest payments.

HAR reported that Houston housing affordability has improved year over year during 22 of the past 25 months. Nationally, affordability improved in 15 of the past 24 months.

That does not mean purchasing a home has become affordable for every household. Property taxes, homeowners insurance, HOA assessments, maintenance expenses and the size of a down payment all contribute to the true monthly cost of homeownership and can vary considerably by community.

Townhome and Condominium Sales Hold Steady

Houston-area townhome and condominium sales were unchanged from August 2025, with 405 units sold.

Prices declined in this portion of the market. The average sales price fell 1.5% to $245,692, while the median dropped 7.1% to $195,000.

Buyers also had more options, with active townhome and condominium listings increasing 3.1% to 3,504 properties. Inventory rose from an 8.1-month supply in August 2025 to 8.8 months in August 2026. Pending sales declined 8%, from 439 to 404.

Houston Records $3.5 Billion in August Property Sales

Across all property types, 8,362 transactions closed in Greater Houston during August, down 10.2% from a year earlier. Those sales represented approximately $3.5 billion in total dollar volume, an 8.8% decrease.

Active listings across all property categories reached 60,390, a 1% year-over-year increase.

The August figures reflect a market with fewer completed sales but continued buyer activity, steady single-family inventory and no broad collapse in pricing. For residents considering a move, conditions may offer something that was difficult to find during the most competitive pandemic-era years: time to weigh the options.

Additional statistics and market charts are available in HAR’s August 2026 Monthly Activity Snapshot.

By Tiffany Krenek, 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.

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