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The Houston housing market showed encouraging signs of balance in January including expanded inventory and steady buyer demand, according to the latest monthly Housing Report from the Houston Association of REALTORS®.
Active listings increased 15.7% year over year, with 54,589 properties on the market during the month. Closings fell 1% year over year, with 4,999 homes sold — the fewest transactions since January 2023.
However, pending sales increased 8.5%, with 6,813 listings going under contract, indicating strong sales in the coming weeks.
Days on market increased to 66, up five days from a year prior. That was the highest average since February 2020, when homes spent an average of 68 days on the market.
Prices fluctuated, with the median decreasing 0.9% to $233,045 and the average increasing 2.8% to $416,722. Luxury home sales — those with a price tag of $1 million or more — increased 15.5% year over year.
“Right now, buyers have more choices and a bit more time to make decisions, while sellers are adjusting to a market that’s becoming balanced,” said HAR Chair Theresa Hill. “With rates expected to ease a little this year, buyers who have been waiting on the sidelines may start to feel more confident and enter the market. That should help maintain demand and create additional opportunities for sellers throughout the year.”
Given the rate of sales, Houston had a 4.7-month inventory, up from 4.2 months a year prior.
Decreased mortgage rates and median prices meant improved affordability for homebuyers last month. Assuming a 20% down payment, the typical Houston homebuyer in January needed to spend $1,561.26 per month, down from $1,722.81 in January 2025. That amounts to about $2,000 less annually.
January was the 15th of the last 18 months with improved housing affordability.
Looking only at existing-home sales, closings decreased by just 10 sales annually, with 3,422 homes sold in January. The average sales price increased 3.8% to $428,152, while the median was steady at $320,000.
Among for-sale townhomes and condominiums, sales dropped 25.9% last month, with 269 units sold. The average price decreased 8.6% to $226,343, while the median fell 11.9% to $185,000. That was the lowest level since February 2021.
Townhome and condo inventory hit a 7.6-month supply, up from 5.5 months in January 2025.
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Emily Marek
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