The Houston Real Estate Market: Q4 2025 at a Glance
Ever wonder what the real estate market is doing? Here's a simple breakdown of the Houston area for the last three months of 2025.
What's Happening in the Market?
Imagine a scale. For a while, the market was heavily tipped in favor of sellers. Now, it's starting to find a better balance. This means it's a bit easier for buyers, and sellers need a smart plan to get the best price.
Here are the key numbers and what they mean for you:
For Buyers 🏡
More Homes to Choose From
The number of homes for sale is going up. We now have a 5.2-month supply of homes.
What this means: You have more options, and you don't have to rush into a decision. A "balanced" market has a 4- to 6-month supply, so we're right in that sweet spot.
Mortgage Rates are Falling
Interest rates on home loans are a little lower now, at about6.5%.
What this means: Borrowing money to buy a home is a little more affordable. This can help more people get into the market.
Prices are Getting More Stable
The average price of a single-family home is around $421,000, which is about the same as last year. The median price, which is the middle price of all homes sold, is down slightly.
What this means: Prices aren't skyrocketing anymore. This is good news for your budget. You're also seeing more new homes being built that are priced for first-time buyers, especially in the $300,000 to $350,000 range.
For Sellers 📈
People Are Still Buying
Despite an increase in the number of homes on the market, sales are up 5.3% compared to last year. This shows that there is still a lot of interest in buying a home in Houston.
What this means: The market is still strong, but it's not as fast-paced as it used to be.
Selling Your Home Takes a Bit Longer
On average, a home is now on the market for 55 days before it sells.
What this means: You need to price your home correctly from the very beginning. If you list it too high, it might sit on the market for a long time. The sweet spot for sales right now is in the $300,000 to $500,000 price range.
Luxury Homes are Making a Comeback
The market for homes over $1 million is getting stronger again.
What this means: If you're selling a high-end property, now is a good time to list it.
Why Houston's Market is Holding Strong
The real estate market is a reflection of the local economy, and Houston's economy is booming. The city is expected to add 47,400 new jobs this year, especially in sectors like energy, healthcare, and technology. This steady job growth keeps the demand for housing high.
The rental market is also busy, with average rent at about $1,586 a month. Many people are choosing to rent as they save up for a home or wait for a better buying opportunity.
The Bottom Line
Houston's real estate market is settling into a more predictable and balanced state. For both buyers and sellers, this means a more manageable process. It's a great time to be in the market, as long as you have a clear strategy.
