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The Greater Houston housing market continued its hot streak in August. It was the fourth consecutive month of sales growth, driven by strong buyer demand and steady pricing.
The Greater Houston housing market kept its hot streak alive in August, marking the fourth consecutive month of sales growth. According to the Houston Association of REALTORS (HAR) August 2025 Housing Market Update, single-family home sales rose 11.9% compared to last year, with 8,138 closings versus 7,270 in August 2024.
Inventory levels also climbed, with 39,374 active listings--a 30.4% increase from a year earlier. This shift is giving buyers more negotiating power and creating a more balanced market than Houston has seen in more than a decade.
Home prices showed little movement in August, offering welcome relief for buyers concerned about affordability:
Sellers can also take comfort that values remain stable despite higher inventory levels, proving that demand is keeping the market strong.
The surge in listings pushed months of inventory up to 5.4 compared to 4.4 last year. For context, the national supply currently sits at 4.6 months, according to the National Association of REALTORS.
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This means buyers have more time and options, while sellers may need to adjust expectations slightly as competition increases.
Unlike single-family homes, Houston's townhome and condo market cooled in August:
This softer performance may present opportunities for bargain-hunting buyers in the Greater Houston area.
The Houston housing market in August 2025 was defined by steady prices, growing inventory, and rising sales. Buyers now have more options and negotiating power, while sellers still benefit from solid demand. As mortgage rates continue to trend downward, momentum is expected to carry into the fall.
For both buyers and sellers, the market is offering a rare balance that hasn't been seen in years.
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Are home prices in Houston going up or staying steady?
In August 2025, home prices in Houston stayed flat compared to last year. The average price was $422,703 and the median was $335,000. This stability means buyers aren't facing sharp price jumps, while sellers can still count on strong demand to support home values.
What does more inventory mean for buyers and sellers?
With 39,374 active listings--a 30% increase from last year--buyers now have more homes to choose from and more negotiating power. For sellers, it means more competition, but also that buyers are still active and motivated, especially with easing mortgage rates.
How are different parts of the market performing?
Single-family homes: Sales jumped nearly 12%, making this segment the strongest performer. Luxury and affordable homes: Both saw double-digit growth, showing demand across the spectrum. Townhomes & condos: Sales dropped 13.5%, and prices declined, which may open the door for bargain-hunting buyers.
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