Houston, TX Market Spotlight
- REWI
- Oct 11
- 4 min read
The Houston, TX Market prices look like they are declining
The Greater Houston housing market moved toward a more balanced position in September. Steady demand, easing prices and a robust supply of homes are helping the market settle into a more sustainable rhythm for both buyers and sellers.
According to the Houston Association of Realtors' September 2025 Housing Market Update, single-family home sales rose 5.3 percent year-over-year. A total of 7,399 homes were sold compared to 7,025 last year. Pending sales, newly signed purchase contracts, also remained strong, signaling underlying market confidence from buyers.
Home prices reached their lowest levels since February. The median home price was $327,000, which is 2.1 percent less than last year’s figure. The average price inched up 2.0 percent to $421,655, largely due to a rise in luxury home sales in September.
Homes priced from $250,000 to $499,999, which accounted for more than 55 percent of all September sales, experienced a 1.3 percent decline in activity compared to the same time last year. All other price ranges recorded year-over-year sales growth.
Inventory remains at healthy levels across the Houston area. Active listings are still higher than this time last year, though month-to-month growth has begun to flatten. Months of inventory dipped slightly from August as a result of increased sales activity.
The median price of a home in Houston is currently lower than the national average: a typical U.S. home in May cost $388,829, according to CoStar data, nearly $50,000 more than an average home in the Texas city.
The entire Houston housing market is struggling, from single-family homes to condos. The city, according to a recent Redfin report, reported the third-steepest year-over-year drop in condo prices in the country in May at -23 percent, after Deltona, Florida (-32.2 percent) and Crestview, Florida (-32 percent).
Active listings were 28.5 percent above last year’s level with 38,552 single-family homes available. That figure was down slightly from August’s 39,625 active listings. Months of inventory expanded from 4.3 months to a 5.2-months supply. The national supply stands at 4.6 months, as reported by the National Association of Realtors. Homes spent an average of 55 days on the market, up from 52 days a year earlier.
Broken out by housing segments, single-family home sales in the Greater Houston area performed as follows:
$1 - $99,999: increased 20.2 percent (107 transactions)
$100,000 - $149,999: increased 35.9 percent (178 transactions)
$150,000 - $249,999: increased 25.1 percent (1,484 transactions)
$250,000 - $499,999: decreased 1.3 percent (4,113 transactions)
$500,000 - $999,999: increased 3.7 percent (1,182 transactions)
$1M and above: increased 27.3 percent (331 transactions)
HAR also breaks out sales figures for existing single-family homes. In September, existing home sales increased 8.4 percent year-over-year, with 5,157 closings compared to 4,759 a year earlier. The average sales price was 1.2 percent above last year’s level to $434,349, while the median price was down 2.8 percent to $325,000.
Here are some of the Year over Year Neighborhood Trends
Neighborhood | 1-Yr Appreciation | Median Sales Price | Median Sales Price/Sq Ft |
Memorial Park | 5.8% | $1,650,000 | $398 |
River Oaks Shopping Area | -12.9% | $865,000 | $291 |
Rice / Museum District | 16.5% | $1,200,000 | $404 |
East End Revitalized | -0.2% | $349,990 | $203 |
Washington East/Sabine | 5.0% | $567,000 | $235 |
Knollwood/Woodside | -0.1% | $555,000 | $241 |
Garden Oaks | 2.6% | $867,000 | $359 |
University Area | -6.2% | $309,450 | $173 |
Timbergrove/Lazybrook | 3.3% | $669,000 | $298 |
Upper Kirby | -5.5% | $990,000 | $342 |
Midtown Houston | -6.9% | $360,000 | $211 |
West University/Southside Area | -2.8% | $1,809,500 | $512 |
Briar Hollow | 9.9% | $840,000 | $376 |
River Oaks Area | -3.8% | $3,087,500 | $583 |
Highland Village / Midlane | -6.9% | $1,150,000 | $327 |
Galleria | -2.1% | $304,500 | $191 |
Rice Military/Washington Corridor | -4.3% | $538,000 | $240 |
Downtown Houston | -12.6% | $252,500 | $244 |
Oak Forest East | 0.0% | $490,000 | $285 |
Riverside | 5.6% | $395,999 | $200 |
Meyerland Area | -1.4% | $493,000 | $211 |
Cottage Grove | 2.8% | $532,500 | $231 |
Medical Center Area | 20.0% | $300,000 | $174 |
Heights/Greater Heights | 2.2% | $690,000 | $329 |
Montrose | 3.0% | $802,500 | $303 |
Willow Meadows Area | 6.3% | $372,000 | $201 |
Bellaire Area | 6.2% | $1,275,000 | $338 |
Greenway Plaza | 30.7% | $585,000 | $266 |
Braeswood Place | -9.5% | $1,227,500 | $353 |
Royden Oaks/Afton Oaks | 58.9% | $1,867,500 | $410 |
The Houston rental market continued its steady pace in August, marked by a record number of available listings. The balance between supply and demand is keeping prices stable, which is welcome news for consumers.
According to the Houston Association of Realtors’ August 2025 Rental Market Update, a total of 4,602 single-family homes were leased in August, a 3.1 percent increase compared to the 4,465 leases signed during the same time last year.
Active listings topped 10,000 units in August. This represents the highest inventory on record, giving renters more choices than ever.
Real estate agents added 7,415 new listings to the Multiple Listing Service compared to 6,188 last August. That is a 19.8 percent increase year-over-year. Rental properties are taking slightly longer to lease, averaging 35 days on market, up from 32 days last August.
Lease prices were statistically flat for the second month in a row, with the average rent at $2,412 in August.
“Houston renters are in a strong position right now with more choices and stable lease prices.
Townhome and condominium rentals rebounded in August. Leased listings of these properties were 2.8 percent above last year’s level, with 738 units leased. The average lease price declined 0.9 percent to $1,965.
New listings were down 6.3 percent year-over-year to 1,198 units. Days on Market increased to 48 compared to 39 last August.