Houston Home Sales Rise as Prices Drop

HOUSTON – (Realty News Report) – Houston home sales gained momentum in October as sellers kept the market moving by lowering prices and mortgage rates eased.

Single-family home sales rose 3.2% over the year in October, the sixth straight month of year-over-year gains, according to a monthly report by the Houston Association of Realtors. A total of 7,419 homes were sold across the Greater Houston region in October, up from 7,187 homes in October 2024.

The average list-to-sales price fell to 92.6%, the lowest level since HAR began tracking the metric in 2001. When Houston’s inventory was super tight amid heightened demand and bidding wars during the pandemic, homes commonly sold for more than list price a few years ago.

“Despite the government shutdown and some uncertainty in the economy, homebuying interest in Houston remains solid,” said HAR Chair Shae Cottar with LPT Realty. “Prices have softened, inventory is up, and mortgage rates are coming down—all of which are giving buyers more room to breathe. The frenzied pace of recent years has eased, and the market has leveled out, ultimately benefiting both buyers and sellers.”

Homes sold for a median price of $330,000 in October, down 1.5% over the year, according to HAR. The median represents the midpoint of sales. The average price held steady at $423,955, up 0.5% from $421,908 in October 2024.

Active single-family home listings rose by more than 25% to 38,316 in October, up from 30,487 a year ago, according to HAR.

In addition to a greater supply of homes for sales, buyers have been helped by mortgage rates that are more than half a point lower than year-ago levels. Last week’s average 30-year fixed-rate mortgage was 6.22%, according to Freddie Mac. That compares with a 52-week average of 6.88%.

The supply of homes on the market reached 5.2 month of inventory, up from 4.4 months in October 2024, according to HAR. Homes took a week longer to sell on average than a year ago, reaching 59 days on the market in October.

The sales pace was brisk for both homes at the upper end and near the low end of the spectrum.

Homes from $100,000 to $149,999, which represented 2.6% of October’s sales, rose most with a 27% jump in volume, according to HAR.

Sales at the upper end of the market – homes selling for $1 million and up – registered a 10.8% gain over the year in October, according to HAR. The $1 million and up category consisted of 329 sales or 4.4% of the month’s transactions.

Homes from $150,000 to $249,999, the segment that comprised 20% of sales, increased third most at 9.1%.

Sales volumes held steady for homes from $250,000 to $499,999, which consisted of 4,047 sales or over half of the month’s transactions.

These are takeaways from the National Association of Realtors 2025 Profile of Home Buyers and Sellers, which examined transactions between July 2024 and June 2025 to provide insights on the housing market.

Across the nation, the lack of affordable homes on the market has translated into a smaller share of sales for first-time buyers whose typical age reached an all-time high of 40, according to the National Association of Realtors.

The median age of all buyers was 59, while the typical age of repeat buyers was 62, also a new high, according to the NAR’s 2025 Profile of Home Buyers and Sellers, which examined transactions between July 2024 and June 2025 to provide insights on the housing market.

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File: Houston Home Sales Rise as Prices Drop HAR Houston Home Sales Rise as Prices Drop NAR