Houston Housing Market Maintains Balance in September

The Greater Houston housing market showed signs of healthy balance in September 2025. With steady demand, moderating prices, and plenty of homes to choose from, the market continues to settle into a more sustainable rhythm that benefits both buyers and sellers.

According to the Houston Association of REALTORS (HAR) September 2025 Housing Market Update, home sales rose for the fifth straight month, signaling confidence among buyers as mortgage rates eased and affordability improved.

Summary

Sales Growth and Market Confidence

Single-family home sales continued their upward streak, climbing 5.3% year-over-year. A total of 7,399 homes sold in September, compared to 7,025 the previous year. Pending sales--contracts signed but not yet closed--also surged 11.2%, showing that buyer confidence remains strong heading into fall.

The increase in sales coincided with easing mortgage rates and lower monthly payments. Based on data from Freddie Mac, the average monthly principal and interest payment for a median-priced home dropped to $1,627.77, which is over $140 less than earlier this summer.

Home Prices Settle into a Healthier Range

Home prices adjusted modestly, creating a more favorable environment for buyers:

• Median Price: $327,000 (down 2.1% from last year)
• Average Price: $421,655 (up 2.0%)
• Average Price per Sq. Ft.: $175 (slightly below last year's $177)

The luxury market saw increased activity, contributing to the slight rise in the overall average price. Meanwhile, homes priced between $250,000 and $499,999--which make up more than half of all sales--saw a 1.3% dip in activity.

Inventory and Market Pace

Houston's housing supply remained strong, though month-to-month growth began to stabilize.

• Active Listings: 38,552 homes (up 28.5% year-over-year)
  Months of Inventory: 5.2 months (up from 4.3 a year ago)
  Days on Market: 55 days (up from 52 last year)

A 5.2-month supply signals a balanced market, where neither buyers nor sellers hold a major advantage. By comparison, the national supply currently stands at 4.6 months, according to the National Association of REALTORS.

Townhomes & Condos See Renewed Demand

The attached-home market also gained momentum in September:

• Sales: up 4.0% (414 units vs. 398 last year)
• Average Price: down 4.9% to $273,890
• Median Price: down 4.4% to $230,000
• Active Listings: up 31.9% to 3,428 units
• Months of Inventory: up to 8.2 months (from 5.7 last year)

With more inventory and softening prices, townhomes and condos are becoming an attractive alternative for budget-conscious buyers and first-time homeowners.

Final Thoughts

The Houston housing market in September 2025 is finding its balance. Prices have cooled just enough to make homeownership more attainable, while strong demand and solid inventory keep the market active. Whether you're buying, selling, or renting, Houston continues to offer opportunities at nearly every price point.

As mortgage rates continue to ease, the remainder of 2025 could see even more momentum--especially for first-time buyers ready to make their move.

Looking for your dream home? Explore thousands of listings across Texas on HAR.com.

FAQs

Are home prices going down in Houston?
Yes, the median home price fell 2.1% year-over-year to $327,000, offering buyers more affordability while overall demand stayed strong.

What's causing the Houston housing market to balance out?
A combination of steady demand, higher inventory, and easing mortgage rates has created a healthier equilibrium for both buyers and sellers.

How is the condo and townhome market performing?
Townhome and condo sales rose 4% compared to last year, even as prices dipped slightly--making them a more budget-friendly option for many buyers.