More homes for sale and easing prices meant the Houston housing market gained momentum in February despite decreasing home sales, the latest Housing Market Update from the Houston Association of REALTORS® shows.
Closed single-family home sales dipped 2.2% year over year in February (via HAR).
Closed home sales dipped 2.2% year over year, with 5,918 single-family homes sold during the month. Pending sales, however, increased 13% year over year, with 7,894 listings going under contract — signaling strong sales in the coming weeks.
“The Houston market continues to show signs of balance,” said HAR Chair Theresa Hill. “Buyer interest remains strong, and the increase in showings and pending sales tells us the spring market is already beginning to take shape.”
Affordability improved for buyers in February: While the average home price increased 2% year over year to $415,091, the median declined 0.9% to $322,078. The typical 30-year mortgage rate fell to the lowest level in over 40 months, making monthly mortgage payments about $149 cheaper than in February 2025.
Days on market hit 69 days, marking the highest level since March 2013, when the typical home sold in 74 days.
Meanwhile, total active listings climbed 14.3% year over year to 55,710. Given the rate of sales, Houston had a 4.8-month inventory, up from 4.3 months a year prior.
“If you are waiting for the Houston housing market to bottom, it already did several years ago and is back to normal levels,” said HAR Chief Economist Ted Jones.
Existing-home sales
Among only existing single-family homes, sales actually increased 5% year over year, with 4,019 homes sold. The average price increased 0.6% to $421,772 while the median decreased 1.5% to $320,000.
Townhomes and condos
Sales of townhomes and condos declined 7.4% year over year in February, with buyers purchasing 299 units during the month. The median price declined 3.4% to $240,500, while the average fell 3.5% to $276,835.