Houston Housing Market Finds Balance as Spring Buying Season Begins

As the spring homebuying season gets underway, Houston's housing market is showing encouraging signs of balance and stability. While economic uncertainty remains a factor, recent data suggests both buyers and sellers are adjusting to a more normalized market environment.

According to the Houston Association of Realtors March 2026 Housing Market Update, home sales, inventory, and buyer activity are all moving in a direction that supports a healthier, more sustainable pace.

Summary

Home Sales Rebound as Buyer Activity Grows

March marked the first year-over-year increase in home sales for 2026.

• Homes sold: 7,644 (up 3.7% from last year)
• Pending sales: Up 12.8%

The rise in pending sales is a strong indicator that buyer demand remains active as more people enter the market for the spring season.

"The market is in a really steady place right now," said Theresa Hill, HAR Chair with Compass RE Texas, LLC - Houston. "Buyers are still active, prices are moderating, and inventory is leveling out."

Home Prices Ease Slightly

After years of rapid price growth, Houston home prices are showing signs of moderation:

• Median home price: $330,000 (down 1.5%)
• Average home price: $420,510 (down 1.2%)
• Price per square foot: $174 (down from $179 last March)

These modest declines, combined with earlier drops in mortgage rates, have helped improve affordability for some buyers.

However, interest rates remain a key factor to watch.

"Global uncertainty... is creating more volatility in interest rates and adding pressure to affordability," said Ted C. Jones, HAR Chief Economist. "Mortgage rates have already moved higher... and that could influence the pace of the market in the months ahead."

Inventory Levels Support a Balanced Market

Housing inventory continued to expand, though growth has started to level off--another sign of market balance.

• Active listings: 34,898 (up 8.7% year-over-year)
• Months of inventory: 4.7 months (up from 4.5)

For comparison, the national housing supply currently stands at 3.8 months, according to the National Association of Realtors.

Homes are also taking slightly longer to sell:

• Days on Market: 67 days (up from 62 last year)

This gives buyers more time to make decisions and reduces the urgency seen in past years.

Townhome and Condo Market Sees Improvement

Houston's townhome and condominium market also showed signs of recovery:

• Sales: 402 units (up 1.8%)
• Median price: $220,000 (down 4.3%)
• Average price: $267,956 (down 1.6%)
• Inventory: 8.2 months (up from 6.8)

Higher inventory levels in this segment provide even more options for buyers seeking affordability or lower-maintenance living.

Final Thoughts

Houston's housing market is entering the spring season on solid footing. With rising sales, moderating prices, and steady inventory levels, the market is becoming more balanced for both buyers and sellers. While interest rates remain an important factor, the overall outlook points to a stable and active spring homebuying season.