Houston Housing Market Heats Up as Inventory Reaches Record Levels

Key Takeaways

According to the Houston Association of REALTORS® June Housing Market Update, Houston’s real estate market saw a strong boost in June, with more homes available for sale than ever before. This gave buyers more options, and many jumped at the chance—especially those shopping for luxury properties.

More Homes, More Buyers

The number of single-family homes sold in June climbed to 8,588, up 12.5% from last year. This marks the biggest year-over-year sales increase since December.

Inventory—meaning the number of homes for sale—soared to 38,713 active listings, a 31.8% increase from June 2024. That’s the highest number of homes HAR has ever recorded.

Buyers benefited from this surge in inventory and relatively steady prices. The median home price (a more accurate indicator of the market than the average) remained flat at $346,651. However, the average price rose to a record $450,235, driven mostly by strong sales of million-dollar homes.

Luxury Market Leads the Way

Homes priced at $1 million and up saw a 40.6% increase in sales over last year. But demand wasn’t limited to just luxury buyers, every price range saw growth.

Townhomes and Condos Struggle

While the single-family market thrived, the townhome and condo market continued to cool. Sales dropped 4.4% year-over-year, and both median and average prices dipped. However, inventory for this segment rose significantly, with the supply reaching its highest level since 2011—great news for buyers who prefer these property types.

What It Means for You

Experts say the Houston housing market is showing signs of balance—good news for both buyers and sellers.

Mortgage rates have also slightly improved. In June, the average 30-year mortgage rate was 6.82%, down from 6.92% a year ago.

This means monthly payments stayed about the same, with a typical mortgage payment now around $1,811.

More Signs of a Healthy Market

• Pending sales (homes under contract but not yet closed) were up 10.1%.
• Months of inventory rose to 5.4 months, meaning it would take that long to sell all homes if no new ones were listed. That’s the highest since 2012.
• Homes took just a bit longer to sell—49 days on average, up from 47 last year.

You can read the full June Housing Market Update and other HAR housing reports at www.har.com/newsroom.