Houston Housing Market Update – January 2026

Steady Demand, Expanding Inventory & What It Means for Buyers and Sellers

The Houston housing market kicked off 2026 with signs of balance and opportunity. According to the Houston Association of Realtors (HAR) January 2026 Housing Market Update, inventory is expanding, buyer demand remains steady, and affordability has improved compared to this time last year.

Here’s what that means for you if you’re buying or selling in Houston & The Greater Surrounding Areas!

Houston Market at a Glance – January 2026

• Total Property Sales: 6,045 (down 2.2% year-over-year)

• Single-Family Home Sales: 4,999 (down 1.0%)

• Median Home Price: $322,045 (down 0.9%)

• Average Home Price: $416,722 (up 2.8%)

• Months of Inventory: 4.7 months (up from 4.2 last year)

• Days on Market: 66 days (up from 61 days)

A More Balanced Market Is Taking Shape

Inventory rose 15.7% year-over-year, bringing total active listings to 54,589 homes. For single-family homes specifically, supply expanded to 4.7 months — a noticeable shift from the ultra-tight inventory conditions Houston experienced in previous years.

For buyers, this means:

• More options to choose from

• More negotiating power

• Slightly more time to make decisions

For sellers, it means pricing strategy matters more than ever. Homes are still selling — but they must be positioned correctly in today’s market.

Home Prices: Mixed but Stable

The median home price edged down slightly to $322,045, while the average price rose to $416,722. This suggests continued strength in higher price points, particularly in the luxury market.

In fact, homes priced at $1 million and above were the strongest-performing segment, with transactions up 15.5% year-over-year. Meanwhile, the $250,000–$499,999 range — which accounts for over half of all sales — saw a modest slowdown.

This tells us demand hasn’t disappeared. It’s simply becoming more selective.

Affordability Is Improving

One of the most encouraging trends in the January report is affordability.

The estimated monthly principal and interest payment on a median-priced home dropped year-over-year, thanks to slightly improved mortgage conditions and price stabilization. Buyers in January 2026 paid roughly $161 less per month compared to January 2025 — nearly $2,000 less annually.

Houston affordability has improved in 15 of the past 18 months.

For buyers who have been sitting on the sidelines waiting for the “right time,” 2026 may present real opportunity.

Townhome & Condo Market

The townhome and condominium segment experienced a slower start to the year:

• Sales down 25.9%

• Median price down 11.9% to $185,000

• Inventory expanded to a 7.6-month supply

This portion of the market is leaning more toward buyers, creating potential opportunities for first-time buyers or investors looking for entry-level pricing.

What This Means for North Houston Buyers & Sellers

For our clients in North Houston, Conroe, New Caney, Porter, Spring, and surrounding areas:

• Buyers have more leverage than they did a year ago.

• Sellers need strong marketing and strategic pricing.

• Move-up buyers and luxury buyers are still very active.

• Negotiations are back — and representation matters.

The market isn’t crashing. It’s normalizing.

And in a normalized market, strategy wins.

Opportunity Favors the Prepared

The Houston housing market isn’t slowing down — it’s stabilizing.

Inventory is up. Buyers have options. Sellers must be strategic. Luxury is thriving. Affordability is improving. This is what a healthy, balanced market looks like.

In markets like this, success doesn’t come from timing the headlines — it comes from having the right plan.

Whether you’re looking to buy your first home, move up, downsize, or invest, 2026 is shaping up to reward those who are prepared and proactive.

The key isn’t asking, “Is now a good time?”
The better question is, “What’s the right strategy for my goals?”

At The Link Property Group, we help you answer that with clarity, data, and execution.

If you’re considering making a move this year, let’s talk through your options and build a plan that puts you in control of your next chapter.