Houston Real Estate Market November 2025 Outlook for Buyers

Navigating the Houston Housing Market with Local Experts

As 2025 comes to a close, Houston’s real estate market is giving both buyers and sellers something to be thankful for. November brought continued signs of stabilization, with moderating prices, expanding inventory, and improved affordability — all pointing toward a more balanced market environment.

At The Link Property Group, we believe the best decisions are made when data meets local insight. Whether you’re considering selling, purchasing your next home, or planning an investment move, understanding November’s trends is essential heading into the new year.

🏡 Single-Family Home Market: Slower Pace, Strong Fundamentals

Sales & Buyer Activity

In November 2025, 6,347 single-family homes sold, a 2.3% year-over-year decline and the first annual dip since April. While this marks a shift from recent growth, it does not signal a lack of demand. In fact, pending sales rose 7.2% year-over-year, indicating buyers remain active and contracts are continuing to flow into year-end.

This slowdown reflects a market settling into a healthier pace rather than cooling off entirely.

Pricing Trends

Home prices continued to moderate slightly:

• Median price: $325,000 (down 1.5% year-over-year)

• Average price: $422,552 (up 0.8%), driven largely by strength in the luxury segment

• Average price per square foot: $174, slightly below last year

Luxury homes priced at $1 million and above were the strongest-performing segment, with sales up 23.4% year-over-year, despite representing less than 5% of the total market.

Meanwhile, homes priced between $250,000 and $999,999, which make up the majority of Houston transactions, saw slower activity — a clear sign that buyers are becoming more selective.

📦 Inventory & Days on Market: More Options, More Time

Inventory continued its upward trend in November:

• Active single-family listings: 36,620 homes (up 21.0% year-over-year)

• Months of inventory: 5.0 months (up from 4.3 last year)

• Average days on market: 60 days, compared to 53 days in 2024

This increase in supply is giving buyers more leverage, more choices, and more time to negotiate — while sellers are seeing the importance of realistic pricing and professional presentation.

Notably, the average list-to-sale price ratio fell to 92.2%, the lowest level since HAR began tracking the metric in 2001. This reinforces that today’s market rewards homes that are priced correctly from the start.

💰 Affordability Improves as Mortgage Rates Ease

One of the most impactful changes for buyers came from improved affordability. According to Freddie Mac, the average mortgage rate declined from 6.81% in 2024 to 6.24% in November 2025.

When paired with slightly lower median prices, this resulted in meaningful monthly savings:

• Monthly payment (median-priced home):
  Dropped from $1,722.84 to $1,599.17

• Annual savings:
  Approximately $1,484 per year

This shift has brought many buyers back into the conversation who were previously sidelined by higher payments.

🏢 Townhome & Condominium Market: Slower Sales, Rising Prices

The townhome and condo segment cooled for the second consecutive month:

• Sales: Down 8.3% year-over-year (341 units sold)

• Median price: $230,000 (up 2.4%)

• Average price: $268,628 (up 10.7%)

• Inventory: Expanded to 8.0 months, up from 5.8 months last year

Despite softer sales volume, price growth suggests that well-located and well-maintained units continue to attract buyers, particularly in desirable urban and suburban pockets.

🔍 Buyer vs. Seller Dynamics: What This Means

For Buyers:
November presented one of the most favorable buying environments Houston has seen in years — more inventory, better affordability, and less urgency-driven competition.

For Sellers:
Homes are still selling, but success now depends on accurate pricing, strong marketing, and realistic expectations. Overpricing is being met with longer market times and price reductions.

For Investors:
With inventory rising and demand steady, Houston continues to offer long-term investment appeal — especially for those focused on rental stability and appreciation over time.

🔮 The Link Property Group’s Outlook

We expect Houston’s market to remain balanced and intentional through the end of 2025 and into early 2026. Buyers will continue to gain negotiating power, while sellers who adapt quickly will still achieve strong outcomes.

This market rewards strategy — not guesswork.

🏁 Final Thoughts: Strategy Wins in a Balanced Market

The November 2025 Houston housing market reflects normalization, not weakness. With more flexibility on both sides of the transaction, informed decisions and expert guidance matter more than ever.

At The Link Property Group, we specialize in data-backed strategy, neighborhood expertise, and marketing that positions our clients to win in any market condition.

📞 Thinking about making a move in Houston?
Let’s talk strategy and build a plan that aligns with your goals.