Houston ended 2025 with a balanced housing market, as inventory grew, home prices stabilized, and buyers gained more options. According to the Houston Association of REALTORS® (HAR), both buyers and sellers are entering 2026 with clearer expectations and steadier market conditions.
2025 Houston Housing Market Overview
The Houston housing market in 2025 returned to pre-pandemic stability, with steady sales, easing interest rates, and strong summer activity boosting buyer and seller confidence.
Inventory growth was a major trend, with active listings peaking at 39,490 homes in July and supply reaching 5.5 months, easing competition for buyers.
Home prices stabilized, with the median at $334,990 and the average rising slightly to $426,558, while luxury demand pushed the high end to $449,561 in June.
Affordability improved in 10 of 12 months, saving the typical December 2025 buyer over $1,000 annually on principal and interest. HAR Chief Economist Dr. Ted C. Jones notes Houston is now back to a healthy, balanced market and expects sales to grow in 2026.
December 2025 Market Highlights
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Active Listings: 10,872 homes for sale, up 8% year-over-year
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Median Home Price: $425,535, slightly higher than last year
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Days on Market: 92 days on average, up modestly from December 2024
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Pending Sales: Increased 12% compared to last year
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Closed Sales: 8,707 homes, up year-over-year
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Housing Inventory: 4.5 months, higher than last year
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Market Snapshot: Homes are selling at roughly 91% of the original list price, showing stable buyer-seller negotiations
What This Means for Buyers and Sellers
Buyers:
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More homes to choose from across neighborhoods
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Greater negotiating power compared to past years
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Improved affordability relative to other major Texas metros
Sellers:
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Accurate pricing and home presentation are key
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Homes in high-demand neighborhoods and luxury segments continue to sell steadily
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Strategic marketing can help close deals faster
Local Insight & Next Steps
Houston neighborhoods like The Heights, Montrose, Katy, and Cypress are seeing the most activity, giving buyers more options and sellers stronger competition.
Ready to explore the Houston market or get a neighborhood-specific report? Contact us today for a free local housing analysis and personalized strategy.