The Greater Houston housing market moved toward a more balanced position in September. Steady demand, easing prices and a robust supply of homes are helping the market settle into a more sustainable rhythm for both buyers and sellers.

According to the Houston Association of Realtors’ September 2025 Housing Market Update, single-family home sales rose 5.3% year-over-year. A total of 7,399 homes were sold compared to 7,025 last year. Pending sales, newly signed purchase contracts, also remained strong, signaling underlying market confidence from buyers.

Home prices reached their lowest levels since February. The median home price was $327,000, which is 2.1% less than last year’s figure. The average price inched up 2.0% to $421,655, largely due to a rise in luxury home sales in September.

Homes priced from $250,000 to $499,999, which accounted for more than 55% of all September sales, experienced a 1.3 percent decline in activity compared to the same time last year. All other price ranges recorded year-over-year sales growth.

Inventory remains at healthy levels across the Houston area. Active listings are still higher than this time last year, though month-to-month growth has begun to flatten. Months of inventory dipped slightly from August as a result of increased sales activity.

“The past few months have brought lower mortgage rates, and it has helped boost buyer confidence,” said HAR Chair Shae Cottar with LPT Realty. “We are mindful that economic uncertainty and the current government shutdown could impact the market in the weeks ahead—particularly since new National Flood Insurance Program policies cannot be issued right now. Even so, I believe the market is heading into the final months of 2025 on more balanced footing.”

Housing Market Overview

In September, property sales across the Greater Houston area continued to outpace 2024 levels. Total sales increased 5.0 % year-over-year, with 8,686 properties sold. The uptick in transactions was matched by a 6.8% rise in total dollar volume, which exceeded $3.5 billion in September.

Active listings—the total number of available properties—were 24.7% higher than last year with 59,876 units. 

Single-Family Homes Update

The Houston housing market recorded its fifth consecutive month of home sales growth in September on a year-over-year basis. A total of 7,399 single-family homes were sold compared to 7,025 last year. Pending transactions also reflected continued strength in buyer demand, rising 11.2% year-over-year.

Based on declining average monthly 30-year fixed-rate conventional mortgage rates as reported by Freddy Mac, when combined with the slip in median price, monthly principal and interest payments (P&I) necessary to buy the median priced home (assuming 20% down) totaled $1,627.77.  Thus, the typical September P&I payment was $143.87, $180.05, $120.60, and $82.07 less than May, June, July and August this year, respectfully. 

The median home price declined 2.1% to $327,000, while the average price rose 2.0% to $421,655. The average price per square foot was $175, slightly below the $177 recorded in September 2024. The average list-to-sale price ratio edged down to 93.0%, which is the lowest since January 2023.

Active listings were 28.5% above last year’s level with 38,552 single-family homes available. That figure was down slightly from August’s 39,625 active listings. Months of inventory expanded from 4.3 months to a 5.2-months supply. The national supply stands at 4.6 months, as reported by the National Association of Realtors. Homes spent an average of 55 days on the market, up from 52 days a year earlier.

Broken out by housing segments, single-family home sales in the Greater Houston area performed as follows:

$1 – $99,999: increased 20.2% (107 transactions)$100,000 – $149,999: increased 35.9% (178 transactions)$150,000 – $249,999: increased 25.1% (1,484 transactions)$250,000 – $499,999: decreased 1.3% (4,113 transactions)$500,000 – $999,999: increased 3.7% (1,182 transactions)$1M and above: increased 27.3% (331 transactions)

HAR also breaks out sales figures for existing single-family homes. In September, existing home sales increased 8.4 % year-over-year, with 5,157 closings compared to 4,759 a year earlier. The average sales price was 1.2% above last year’s level to $434,349, while the median price was down 2.8% to $325,000.

Townhome/Condominium Update

Demand for townhomes and condominiums strengthened across the Houston area in September. Sales increased 4.0% year-over-year, with a total of 414 units sold compared to 398 a year earlier. Prices showed some moderation. The average price declined 4.9% to $273,890, while the median price was down 4.4% to $230,000.

nventory continued to expand, giving buyers more options. Active listings increased 31.9% to 3,428 units, increasing months of inventory from 5.7 months in September 2024 to 8.2 months this year.

Houston Real Estate Highlights in September

Single-family home sales increased 5.3% year-over-year.Days on Market (DOM) for single-family homes went from 52 to 55 days.The single-family median price declined 2.1% to $327,000.The single-family average price rose 2.0% to $421,655.Single-family home months of inventory expanded to a 5.2-months supply, up from 4.3 months last September.Townhome and condominium sales increased 4.0% with 414 units sold. The median price declined 4.4% to $230,000, and the average price was down 4.9% to $273,890.Total property sales increased 5.0% with 8,686 units sold.Total dollar volume rose 6.8% to $3.5 billion.

Editor’s note: The HAR report, lightly edited, is used by permission. Find the full report at https://www.har.com/content/department/mls.