Houston Housing Market Shows Resilience Amid National Decline

Houston's housing market is bucking national trends, with single-family home sales rising 3.7% over the past year compared to a 3.6% decline in existing home sales nationwide, according to the Houston Association of Realtors. The local market's stability stands out amid factors like high mortgage rates, inflation, and geopolitical tensions that have dampened national sales. Pending home sales in Houston surged over 12% from a year ago, while median home prices fell 1.5% to $330,000, providing some relief for buyers.

Affordability has improved in 17 of the last 20 months for potential Houston home buyers, a trend that Joe Huber of Alchemist Real Estate attributes to moderation in prices, particularly in areas like Katy, where home prices have dropped about $12,000 from a year ago. “That is probably a result of buyers bidding up prices because so few homes were available for sale,” Huber said. The last “normal” year for Houston home sales was 2019, before the pandemic disrupted the market. Last month, Houston area home sales totaled 7,644, a 2% increase over 2019, signaling a return to more stable conditions.

Nationally, existing home sales in 2025 were 24% lower than 2019, with 4.06 million units sold, near a 30-year low. The median national home price rose to $407,600 in 2025, driven by a persistent supply shortage. However, affordability constraints are beginning to limit price increases. In Houston, inventory levels have improved, with 4.7 months of supply compared to 4.5 months a year ago, slightly above the national level of 3.8 months. The townhome and condominium market lags, with inventory swelling to 8.2 months and median prices down over 4%.

One-third of all sellers nationwide have cut their prices to close a sale, one of the highest percentages on record, according to data aggregators. The Sun Belt region saw the most reductions, with Austin leading at 55% of sellers cutting prices, followed by Dallas at 47%, and Tampa and Fort Lauderdale at 45%. Experts attribute this to high mortgage rates, low consumer confidence, and a competitive rental market. “It is spring in Houston, and that is the most active part of the year for home sellers and home buyers. The Iran war will end one way or another, and real estate will once again be on the minds of Houston home buyers,” said Raymond Campbell of Houston Home Buyers.

Raymond Campbell noted that the Houston housing market has been a stable part of the Greater Houston economy for the past six years and expects it to gain steam as mortgage rates and energy prices decline. With improved affordability and a spring selling season underway, Houston home buyers appear ready to re-enter the market.