Last year was a “solid year for both buyers and sellers” as market conditions returned to pre-pandemic norms, the Houston Association of REALTORS® said in its December/Full-Year 2025 Housing Market Update.
According to the association, closed home sales for 2025 increased 2.3% over 2024 volumes, while the total dollar value increased 4.5% to $42.9 billion.
“The past year brought a welcome sense of balance back to the Houston housing market,” said HAR Chair Theresa Hill with Compass RE Texas. “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 Houston region saw year-over-year declines in only three months out of the year: February, April and November. Sales during summer months, meanwhile, more than made up for those deficits.
Active inventory continued its upward trajectory in 2025, with active listings hitting a record-high 39,490 properties in July. Houston had a 5.5-month inventory then — the highest level since June 2012.
Across the year, homes stayed on the market for an average of 64 days, up from 59 days in 2024.
Prices remained stable: The median home price was flat at $334,990, while the average increased 0.9% year over year to $426,558. Luxury market activity pushed the average to an all-time high of $449,561 in June.
“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 Ted 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 increased in 2026.”
Houstonians saw improved affordability during 10 months of the year when compared to 2024. Assuming a 20% down payment, December buyers paid $87.72 less for the monthly housing costs for a median-priced home compared to buyers in December 2024.
December 2025
Closing out the year on a strong note, Houston home sales increased 1.2% year over year in December, with 8,707 total closings during the month. Pending sales increased 12% year over year, with 6,043 listings going under contract.
The total dollar volume rose 2.1% year over year to $3.6 billion, while the median sales price increased 0.8% to $425,535, and the average rose just 0.3% to $335,000.
Given the rate of sales, the Houston metro area had a 4.5-month inventory in December, up from four months a year prior.