2025: Houston Home Sales Up

In Houston, After three years of annual declines, Houston home sales charged back into positive territory in 2025 as the housing market returned to more normal pre-pandemic conditions with a bigger supply of homes for sale and easing mortgage rates.

Houston Sales Rise Almost 4% in 2025 vs 2024

Single family home sales in the Houston region totaled 88,634 for the year, up 3.8% from the 85,373 homes sold in 2024, as stated by a full-year housing market update by the Houston Association of Realtors. Sales had slid since pushing through the 100,000-mark in 2021, with slim pickings and affordability challenges contributing to the decline.

“The past year brought a welcome sense of balance back to the Houston housing market,” HAR Chair Theresa Hill with Compass RE Texas, LLC, Houston, said in the report. “Buyers had more choices, prices were more stable and homes continued to sell at a steady pace. As we head into the new year, that stability will provide a solid foundation for continued growth.”

The competitive market eased as buyers found more options. Active listings reached a record 39,490 in July and ended the year at 33,184, as stated by HAR. The supply of homes on the market climbed to 5.5 months in July, the highest level since mid 2012, and ended the year at 4.5 months in December.

Lower mortgage rates helped drive sales with the average rate for a 30-year mortgage reaching 6.16% last week, down from 6.93% a year ago, according mortgage finance company to Freddie Mac. While a drop, the rate is nearly twice as high as the 3.11% average at the end of 2021.

Houston home sales were especially strong during the summer with only February, April, and November posting year over year declines, as stated by HAR.

After big gains for years, the median home price leveled out in 2025 at $334,990, nearly unchanged from 2024, as stated by HAR. The average single-family home price rose by 0.9% over the year to $426,558 after reaching an all-time high of $449,561 in June. Demand for luxury homes selling for upward of $1 million pushed up the average price.

“We’re selling just as many homes in the Houston area now as we did in 2019, which shows how far this market has come,” said HAR Chief Economist Dr. Ted C. Jones. “Houston is one of the few markets in the country that’s truly back to normal. The recovery a lot of people have been waiting for showed up in our region in 2025, and I think we’ll continue to see sales increase in 2026.”

For December, single-family home sales rose by 2.8% year over year to 7,456 sales, as stated by HAR. Homes in the $500,000 to $999,999 range saw the biggest jump in activity, rising 13.4% to 1,313 transactions.

The median home price in December was flat at $335,000, while the average rose 0.8% to $425,535. Homes sold for an average of $174 per sq ft.

Homes are sitting on the market a little longer, rising to 64 days in December. That’s up from 59 days the previous year.