January 2026 Houston Housing Market Update

What a “Balanced Market” Means for Buyers and Sellers This Year

As we kick off 2026, the Houston housing market is entering the new year from a position many buyers and sellers haven’t seen in a while: balance.

According to the latest full-year data from the Houston Association of Realtors, 2025 marked a return to more normalized, pre-pandemic market conditions. While many major U.S. metros are still working through volatility, Houston quietly re-established itself as one of the most stable and resilient housing markets in the country.

Here’s what that means — and how it could impact your real estate plans this year.

2025 in Review: A Healthier, More Stable Market

Houston closed out 2025 with steady demand, moderating prices, and improved inventory, creating opportunities on both sides of the transaction.

• Total property sales increased 2.3% year-over-year, with 104,325 homes sold

• Single-family home sales rose 3.8%, totaling 88,634 homes

• Total dollar volume climbed 4.5% to $42.9 billion

After years of sharp swings driven by record-low rates and limited inventory, Houston’s housing activity now closely mirrors 2019 levels, a strong indicator of long-term market health.

Inventory Growth Changed the Game in 2025

One of the biggest storylines of last year was inventory.

Active listings steadily increased throughout 2025, peaking in July at 39,490 homes, the highest level since 2012. At that point, Houston reached a 5.5-month supply of inventory, giving buyers more choice and easing the intense competition seen in recent years.

While inventory has since pulled back slightly, December still ended with 52,727 active listings, up 16.5% from the same time last year — a meaningful shift toward balance.

Home Prices: Stable, Not Surging

As inventory expanded, price growth slowed, which is a healthy sign for market sustainability.

• Median home price (2025): $334,990 (essentially flat year-over-year)

• Average home price: $426,558 (+0.9%)

• Luxury demand pushed the average price to a record high of $449,561 in June

Instead of rapid appreciation, 2025 delivered price stability, helping buyers regain confidence while allowing sellers to price more strategically.

Affordability Improved for Most of the Year

Thanks to easing interest rates, affordability improved in 10 out of 12 months compared to 2024.

A buyer purchasing a median-priced home in December 2025 spent $87 less per month on principal and interest than a buyer in December 2024 — saving over $1,000 annually.

This combination of stable pricing and improving rates is one of the reasons buyer activity remained consistent throughout the year.

December 2025 Snapshot: Ending the Year Strong

Houston closed out the year with positive momentum:

• Total property sales: +1.2% year-over-year (8,707 homes)

• Total dollar volume: +2.1% to $3.6 billion

• Single-family home sales: +2.8%

Single-Family Homes (December)

• Median price: $335,000 (flat)

• Average price: $425,535 (+0.8%)

• Price per sq. ft.: $174 (down from $177 last year)

• Days on Market: 64 days (up from 59)

• Inventory: 4.5 months (national average: 3.3 months)

Homes are taking slightly longer to sell, which signals a market where strategy and pricing matter more than speed.

Condo & Townhome Market: More Supply, Selective Demand

The townhome and condo market saw a rebound in December:

• Sales: +5.5% year-over-year (422 units sold)

• Average price: $269,502 (+0.8%)

• Median price: $224,500 (-4.4%)

• Inventory: 7.1 months (up from 5.3)

This segment is becoming increasingly buyer-friendly, particularly for those prioritizing value and negotiating power.

What This Means Heading Into 2026

Houston enters 2026 with:

• More inventory

• Stabilized pricing

• Improving affordability

• Consistent buyer demand

For buyers, this means more options and less pressure.
For sellers, it means preparation, pricing, and presentation are more important than ever.

At The Link Property Group, we use local data — not headlines — to guide our clients through changing conditions and help them make confident, informed decisions.

If you’re considering buying or selling this year and want a strategy tailored to your neighborhood and price point, we’re here to help.