February 2026 Houston Market Update

Inventory Rises, Prices Moderate & Spring Momentum Builds

As we head into the spring homebuying season, the Houston housing market is showing clear signs of balance and renewed activity. According to the Houston Association of REALTORS® (HAR) February 2026 Housing Market Update inventory is rising, prices are stabilizing, and pending sales are increasing — signaling opportunity for both buyers and sellers.

Here’s what you need to know.

📊 Key Market Highlights (February 2026)

• Total property sales: 7,024 homes sold (↓ 3.3% year-over-year)

• Single-family home sales: 5,918 homes sold (↓ 2.2%)

• Average home price: $415,091 (↑ 2.0%)

• Median home price: $322,078 (↓ 0.9%)

• Active listings: 55,710 homes (↑ 14.3%)

• Months of inventory: 4.8 months (up from 4.3 months last year)

• Pending sales: Up 13.0%

While closed sales dipped slightly, pending sales rose significantly — a strong indicator that buyers are preparing for a busy spring market.

🏡 Home Prices: Stabilizing After Two Years of Rapid Growth

February marked the lowest median price level in two years, with the median price settling at $322,078 

• Average price increased modestly by 2.0%

• Median price declined slightly by 0.9%

• Price per square foot dipped to $170

This moderation signals a healthier, more sustainable market compared to the rapid appreciation we saw in prior years.

For buyers, this means less aggressive price growth.
For sellers, it means pricing strategy matters more than ever.

📈 Inventory & Days on Market: More Options for Buyers

Inventory continues expanding:

• Single-family active listings increased 15.2% year-over-year

• Housing supply grew to 4.8 months of inventory

• Average Days on Market rose from 60 to 69 days

This is the highest DOM level since 2013 reflecting a shift toward a more balanced market.

Translation? Buyers have more leverage and time to make decisions — but well-priced homes are still moving.

💰 What Price Points Are Moving?

Sales activity varied across price ranges:

• $1M+ homes: ↑ 9.5%

• $150K–$249K: ↑ 12.2%

• $100K–$149K: ↑ 23.6%

• $250K–$499K: ↓ 9.9%

The mid-range ($250K–$499K) saw the most slowdown, while entry-level and luxury segments posted gains

🏢 Townhome & Condo Market

The townhome and condo segment cooled:

• 299 units sold (↓ 7.4%)

• Median price: $240,500 (↓ 3.4%)

• Average price: $276,835 (↓ 3.5%)

• Inventory expanded to 8.1 months

This segment currently favors buyers.

📉 Mortgage Rates & Affordability

One of the biggest drivers behind increased buyer activity? Improving affordability.

30-year mortgage rates have fallen for eight consecutive months, reaching their lowest level in more than 40 months, combined with moderating prices, this has reduced monthly payments compared to last year.

Buyers are noticing — and pending sales confirm it.

What This Means for You

If You’re Buying:

• More inventory = more negotiating power

• Slight price moderation creates opportunity

• Lower rates are improving affordability

• Spring competition is building — get prepared early

If You’re Selling:

• Proper pricing is critical

• Presentation and marketing matter more in a balanced market

• Serious buyers are still active (pending sales up 13%)

• Homes that show well are still moving

The Bottom Line

Houston is transitioning into a more balanced and sustainable housing market. We’re no longer in the ultra-competitive seller frenzy of previous years — but we are also not in a downturn.

Inventory is up. Prices are stabilizing. Buyer activity is rising.

Spring 2026 is shaping up to be an active season — and strategy will make all the difference.

If you’d like a hyper-local breakdown for your neighborhood (The Woodlands, Conroe, Montgomery County, Katy, Cypress, etc.), reach out to us directly.