Houston Real Estate Market Update: What’s Really Happening in the Houston Housing Market?

If you’ve been hearing conversations about real estate lately, you’ve probably heard a little bit of everything: homes aren’t selling anymore, it’s a buyer’s market, prices are going to drop, or maybe everyone should just wait.

But when we look at the actual numbers, the story is a little different.

Houston’s real estate market has definitely changed, but that doesn’t mean it has stopped.

In fact, the latest numbers from the Houston Association of Realtors (HAR) show that home sales increased, more buyers entered into contracts, and prices remained relatively stable.

What has changed is the balance between buyers and sellers.

And in many ways, I think that’s a healthy thing.

Houston home sales are still growing

In June 2026, 8,820 single-family homes sold across the Greater Houston area, a 3.5% increase from June of last year.

There is another number that I find even more interesting: pending sales increased 12.3% year over year. These are homes that recently went under contract and are expected to become future closings, so this gives us a good indication that buyers are still very much in the market.

Across all property types, Houston recorded 10,181 sales during the month, representing approximately $4.5 billion in total sales volume.

So no, buyers haven’t disappeared.

They’re simply shopping differently than they did a few years ago.

Home prices are much more stable than many people think

Another important part of this report is what’s happening with home prices.

Houston’s median single-family home price remained essentially unchanged at $345,000, while the average price increased slightly by 1.2% to $455,159.

That matters because even with more homes available and buyers having more negotiating power, we’re not seeing a broad decline in home values across Houston.

What we are seeing are price adjustments on individual properties.

And there is a big difference between the two.

A home that comes onto the market priced above what buyers are willing to pay may sit for several weeks and eventually require one or more price reductions. At the same time, another home nearby that is well prepared and strategically priced from the beginning can attract buyers much faster.

That’s why in today’s market, your starting price matters.

Buyers finally have more choices

One of the biggest changes in our current market is inventory.

Houston ended June with 38,839 active single-family listings and approximately 5.2 months of inventory. Average Days on Market also moved slightly higher, from 50 days last year to 52 days.

For buyers, that means something we didn’t always have over the last several years: more time and more choices.

During the extremely competitive market we experienced before, buyers often had to make decisions almost immediately, compete against multiple offers and sometimes give up important protections just to have a chance at getting the home.

Today looks different.

Depending on the property and the area, buyers may have more opportunity to negotiate on price, request repairs or discuss seller concessions.

That doesn’t mean every home is negotiable. The best homes, especially those that show beautifully and are priced correctly, can still attract plenty of attention.

But buyers can be more strategic.

Affordability improved a little, too

Mortgage rates continue to be one of the biggest factors influencing buyers.

There was, however, some improvement compared with last year. In June, Freddie Mac’s average 30-year fixed mortgage rate was 6.49%, compared with 6.82% one year earlier.

HAR estimated that for a buyer purchasing a median-priced Houston home with 20% down, that change represented approximately $65 per month in principal-and-interest savings compared with June 2025.

It isn’t a dramatic difference, but it is movement in the right direction.

I also encourage buyers to look at the entire picture. Interest rates matter, but so do the purchase price you negotiate, seller or builder incentives, property taxes, insurance, your down payment and how long you plan to own the home.

Waiting for one specific interest rate doesn’t automatically mean you’ll end up with a better opportunity.

What does this mean for sellers?

There are still great opportunities for sellers in this market, but the strategy has changed.

We’re no longer in a market where almost any home can be listed and immediately receive multiple offers.

Buyers have alternatives now. They are comparing homes, condition, updates, location, property taxes and, most importantly, price.

That’s why I believe three things matter more than ever:

Pricing. Presentation. Marketing.

A home that is positioned correctly from the beginning has a much better chance of capturing the right buyers during those critical first few weeks on the market.

Starting too high with the idea that “we can always reduce it later” can actually work against a seller. Buyers see Days on Market. They see price reductions. And after a home has been sitting for a while, they often start wondering why.

In this market, the strategy you have on Day 1 matters.

Not every part of Houston is behaving the same way

This is another reason I try not to generalize when someone asks me, “Angie, how’s the market?”

For example, sales of homes priced at $1 million and above increased 17.1% compared with last year. Homes between $150,000 and $249,999 also saw sales rise 14.4%, while some of the middle price ranges posted small declines.

The townhome and condominium market told a different story altogether, with sales falling 9.3% and inventory continuing to increase.

That’s why talking about the “Houston market” as if it were one single market can sometimes be misleading.

Houston is huge.

What’s happening in Sugar Land can look very different from Katy, Richmond, Cypress, The Woodlands or even one specific community within those areas.

We can even see major differences within the same ZIP code depending on price range, age of the homes, schools, taxes and how much competing inventory is currently available.

So, is this a good time to buy or sell?

The answer depends much more on your individual situation than on whatever real estate headline you read this week.

If you’re a buyer, this market may give you something very valuable: choices and greater negotiating power.

If you’re a seller, buyers are absolutely still out there, but pricing, preparing and marketing your property correctly have become much more important.

And if you already own a home and are simply curious about its current value, remember that a Houston-wide average doesn’t necessarily tell you what is happening in your neighborhood.

I always recommend looking at hyperlocal numbers before making a decision.

How many homes similar to yours are currently for sale? How many have actually sold?

How long did they take to sell? What was their original asking price, and what did buyers ultimately pay?

Those are the numbers that really matter.

My takeaway

What we’re seeing in Houston is not a market without buyers, and it’s not a market where home prices are suddenly collapsing.

It is a more balanced market and one that is much more sensitive to pricing.

Buyers have more choices. Sellers have more competition. And both sides benefit from having better information before making a move.

After some of the extremes we experienced over the last few years, a more balanced market can actually be a very healthy thing.

As always, real estate is local. If you’re considering buying, selling or simply want to know what’s happening specifically in your community, I’m always happy to put together an analysis based on the homes actually competing with yours or the area where you’re considering purchasing.

Because Houston’s numbers tell us one story, but your neighborhood may be telling a completely different one.

Data source: Houston Association of Realtors (HAR), June 2026 Housing Market Update, published July 8, 2026.