The Houston housing market continues to demonstrate resilience, outperforming national trends in home sales and affordability, according to local real estate experts. Single-family home sales in the Houston metro area rose 3.7% over the past year, contrasting sharply with a 3.6% decline in existing home sales nationally, as reported by the Houston Association of Realtors. Pending home sales surged over 12% from a year ago, indicating sustained buyer interest despite economic headwinds.
Median home prices in Houston fell 1.5% to $330,000, while days on market increased to 67, up five days from last year. However, affordability measures have improved in 17 of the last 20 months, a trend that Joe Huber of Alchemist Real Estate attributes to price moderation in specific areas like Katy, where home prices dropped approximately $12,000 year-over-year. "That news alone lends a great deal of optimism to the market," Huber said, noting that previous price surges were driven by bidding wars due to limited inventory.
The last pre-pandemic year, 2019, is considered a benchmark for normal market activity. Last month, Houston area home sales totaled 7,644, a 2% increase over 2019, signaling a return to stability. This contrasts with national existing home sales, which in 2025 were 24% lower than 2019 levels, according to data from the National Association of Realtors. National sales peaked at 6.12 million units in 2021 before declining sharply to 4.06 million units in 2025.
Factors limiting home sales include high mortgage rates, inflation, energy prices, poor consumer confidence, and geopolitical tensions, particularly the ongoing Iran war. Raymond Campbell of Houston Home Buyers expressed optimism: "We expect the market will slowly gain steam once the Iran war ends and there are declines in mortgage rates and energy prices."
Inventory levels in the Greater Houston area have risen 8.7% year-over-year to 4.7 months, slightly above the 4.5 months recorded last year and higher than the national inventory of 3.8 months. The townhome and condominium segment faces challenges, with median prices down over 4% and inventory swelling to 8.2 months, up from 6.8 months.
Nationally, one-third of sellers have reduced prices to close deals, one of the highest percentages on record, according to data aggregators. The Sun Belt region, particularly Austin (55% of sellers cutting prices), Dallas (47%), and Florida cities like Tampa and Fort Lauderdale (45%), saw the largest share of price reductions. Experts attribute this to high mortgage rates, lower consumer confidence, and a competitive rental market.
Despite these challenges, Houston's market remains relatively healthy. Spring is the most active season for home sales, with summer also busy due to school holidays. "The Iran war will end one way or another, and real estate will once again be on the minds of Houston home buyers," Campbell added.
