May: Houston Market Gains Momentum

In Houston, Sellers put up plenty of for-sale signs across Houston neighborhoods in May and buyers took action, pushing monthly home sales past the 9,000 mark for the first time in nearly three years.

A total of 9,058 single-family homes closed across the Houston region in May, a 6.8% increase over the 8,483 sales during May of 2024, as stated by the Houston Association of Realtors. It was the biggest gain so far this year.

“With more homes to choose from and prices becoming a bit more favorable, buyers are definitely feeling more confident and getting back out there,” said HAR Chair Shae Cottar with LPT Realty. “This shift signals to sellers that motivated buyers are engaged and eager to take advantage of the current market conditions. We anticipate this momentum will carry us into the summer months.”

Sales have been up one month, and down the next this year. After a slight gain in January, year-over-year sales fell by 3.3% in February. They were up by 1.7% in March before turning negative in April.

The average home price was down 0.7% over the year to $438,230 in May, as stated by HAR. The median price was down 1.2% to $339,425.

The market continued to shift toward buyers, with active listings rising by 35% year-over-year to 37,455, as stated by HAR. It was the most homes on the market since September 2007.

Along with easing prices and more inventory, a dip in mortgage rates helped buyers. The average rate for a 30-year mortgage was 6.85%, down from 6.99% a year ago, as stated by Freddie Mac.

There’s widespread speculation that the Federal Reserve could reduce rates later this year.

“The Fed will remain on pause until inflation is fully contained at or below 2%. It has cited uncertainty regarding the tariff impact to monitor how prices play out in the coming months,” said Lawrence Yun, chief economist of the National Association of Realtors. “Wall Street bettors are pointing to September as the first of several potential rate cuts.”