Houston Real Estate in 2025: A Buyers or Sellers Market?

Buyers vs Sellers

Introduction

Hi neighbors! As your local Realtor® specializing in single-family homes, I’ve been keeping a close eye on our market’s twists and turns in 2025. So far, this year is painting a different picture than the frenzied seller’s market of a couple years ago. If you’re a homeowner thinking about selling, or a first-time buyer wondering if now is a good time to jump in, you’re probably asking: is Houston’s leaning toward a buyers or sellers market? Let’s dive into the latest year-to-date (YTD) 2025 trends – from inventory levels to prices and mortgage rates – and see what they mean for you.

2025 Market Trends at a Glance (YTD vs. 2024)

To set the stage, here are some key Houston housing market stats for single-family homes, comparing mid-2025 to the same time last year:

• Inventory: ~38,700 active single-family listings as of June 2025 (+31.8% year-over-year) – an all-time high – equating to about 5.4 months of housing supply (up from ~4.2 months in mid-2024)

• Sales Volume: 43,795 single-family homes sold from January–June 2025 (+3.0% vs. Jan–June 2024), with recent months seeing double-digit sales growth (June sales +12.5% YoY).

• Median Price: roughly $347,000 for a single-family home – virtually unchanged from a year ago, indicating flat prices YTD

• Days on Market: ~49 days on average for homes to sell, a tad slower than about 47 days a year ago

• Mortgage Rates: around 6.7–6.8% for a 30-year fixed loan, hovering just slightly below mid-2024 levels (~6.9%)– a far cry from the ultra-low ~3% rates of a few years back.

In a nutshell, Houston now has more homes for sale, homes are taking a bit longer to sell, and prices have leveled off. Next, we’ll unpack these trends and what they signal about who holds the advantage in today’s market.

Inventory Surge Signals a More Balanced Market

Single-family homes listed for sale in the Houston metro (in thousands). After record lows in 2021-2022, inventory climbed sharply to its highest level in over a decade by mid-2025.

One of the biggest changes in 2025 is the surge in housing inventory. More homeowners are putting their houses on the market, and new construction is adding fresh listings, giving buyers a lot more options than in recent years. In June 2025, active listings for single-family homes hit 38,713, up 31.8% from June 2024 – the highest number of homes for sale ever recorded by the Houston Association of Realtors (HAR). To put that in perspective, a few years ago during the pandemic boom, inventory was so low that buyers were fighting over scraps; now the selection is far healthier.

Economists often measure housing supply with “months of inventory” – essentially, how many months it would take to sell off all homes for sale at the current sales pace. Houston reached 5.4 months of inventory as of June, the first time it’s been that high since 2012 (By contrast, a year ago we had only about 4.2 months of supply). Many experts consider around 6 months of inventory to be a balanced market between buyers and sellers. At 5.4 months, we’re nearly there – a dramatic shift from the seller-favored conditions of the past few years. In other words, the pendulum is swinging back toward balance, giving buyers more breathing room.

What does higher inventory feel like on the ground? For one, homes aren’t selling overnight like they used to. The average Days on Market (DOM) for a Houston listing has nudged up to about 49 days, from ~47 days a year ago. That’s still relatively quick historically (homes aren’t sitting around for ages), but it’s enough of an increase to signal that buyers can be a bit more deliberate now. We’re seeing fewer frenzied bidding wars and more instances of price reductions or seller concessions if a home doesn’t attract offers in the first few weeks. Simply put, buyers have more choices and slightly more negotiating power than they did during the craziness of 2021-2022.

Home Prices Hold Steady (No More Wild Spikes)

Median single-family home price in Houston (12-month average). After rapid gains in 2020–2022, prices leveled off in 2023–2025.

Unlike the rollercoaster of the past few years, home prices in Houston have leveled off in 2025. The median price for a single-family home is around $346K–$352K (depending on the month), which is almost the same as last year at this time. In fact, the median price was virtually unchanged year-over-year this June – a big change from the double-digit price jumps we saw post-2020. Essentially, values aren’t falling much, but they’re not shooting up either. This stability suggests the market found an equilibrium: increased supply has tempered price growth, but steady buyer demand (and a strong local economy) is preventing any major price declines.

It’s worth noting that Houston did hit a record high average price this year, around $450K. How can the average be at a record while the median is flat? The answer: a surge in luxury home sales. Sales of high-end properties (think $1M+ mansions) jumped over 40% year-over-year, which lifted the average price. But most typical homes aren’t getting more expensive – the median (the middle of the market) barely budged, which tells us the typical Houston homeowner’s value is holding steady. For sellers, that means you likely won’t fetch a dramatically higher price than last year (but hey, your home’s value also isn’t plummeting). And for buyers – especially first-timers – it’s a relief that prices aren’t running away higher; you’re shopping in basically the same price range as a year ago.

Mortgage Rates and Affordability in 2025

While inventory and prices are trending in a buyer-friendly direction, mortgage rates remain the main hurdle for buyers. As of mid-2025, the average 30-year fixed rate is sitting around 6.7 - 6.8%. That’s actually slightly better than a year ago (when it was about 6.9%), but it’s still much higher than the ~3% rates we saw in 2021. Higher interest rates translate to higher monthly payments, which can squeeze budgets – especially for first-time buyers who don’t have proceeds from a prior home sale. In fact, housing affordability is at a historic low nationally, and Houston isn’t immune. HAR’s chief economist noted that we’re dealing with the “lowest affordability in 40 years” due to the combo of elevated rates and the big price gains of the past decade. That’s a sobering stat for buyers.

The good news is that rates have at least stabilized in the mid-6% range for now, after see-sawing last year. And there are signs that if inflation continues to cool, mortgage rates might ease later on (though likely not back to 3%, unfortunately). For now, buyers need to budget for these higher financing costs. The slight dip in rates from a year ago does save a bit – for example, financing a median-priced home today would cost a Houston buyer a tad less in principal-and-interest than it did in mid-2024 – but we’re talking maybe saving a few dollars, not hundreds. The bottom line: borrowing money isn’t as cheap as it used to be, so affordability remains a challenge, even though home prices themselves have flattened out.

Is 2025 a Buyer’s Market or Seller’s Market?

All these factors beg the question: who’s got the upper hand in Houston real estate right now – buyers or sellers? Based on the data so far in 2025, the scales are tipping back toward buyers, or at least toward a balanced market. With inventory at a decade-high and climbing and months of supply (~5.4) approaching that balanced 6-month benchmark, Houston is no longer the ultra-tight seller’s market it was a couple of years ago. Buyers simply have more choices and more leverage than they recently did. Sellers, in turn, are facing more competition and can’t bank on bidding wars driving up their price.

To be clear, this doesn’t mean Houston has swung to a full-on buyer’s market in the extreme sense. We aren’t seeing fire-sale prices or a glut of empty houses. In fact, homes are still selling at a healthy clip - year-to-date sales are actually up compared to 2024, and June’s sales were especially strong. So demand is definitely still there. Think of it as a cooling from red-hot to comfortably warm. The market now is balanced enough that both parties have room to negotiate: sellers can still find willing buyers at fair prices, but buyers are less likely to pay over asking or waive all contingencies like they often did in 2021. As one HAR market report put it, Houston’s housing environment in 2025 is a “win-win” in many ways, with a newfound equilibrium benefitting both sides.

So, if we have to pick a side: the market is leaning in buyers’ favor more than it has in years (high inventory, flat prices), but it’s not a buyers’ free-for-all – it’s more of a balanced playing field. Next, let’s break down what this means practically for you as a seller or a buyer.

What These Trends Mean for Sellers

For those looking to sell a home in Houston in 2025, the market is still solid – but it’s not the no-holds-barred seller’s market of the recent past. Here’s what to expect and how to make the most of it:

• Price it Right from the Start: With buyers gaining options, overpricing your home is risky. Gone are the days when you could list aspirationally high and still get multiple offers in 24 hours. Now, buyers are doing their homework and have other houses to compare. Houston’s median prices aren’t rising like before, so look closely at comparable sales and consider pricing at market value to attract interest. A well-priced home is still selling – often in a month or so – but an overpriced one might sit with minimal showings until a price cut happens.

• Expect More Normal Sale Timelines: Don’t be alarmed if your home doesn’t go under contract the first weekend. Average DOM is pushing about 7 weeks now, so be prepared for a few more open houses and showings. Patience is key. The good news is, 49 days on market is still faster than historical norms – Houston is not in a slump, it’s just calmed down. Work with your agent on a marketing plan for that full duration (professional photos, online listings, maybe even some staging) to keep buyer interest rolling in.

• Competition & Condition: Higher inventory means buyers can afford to be pickier. Before listing, it pays to tackle minor repairs and spruce up your property so it shows its best. In a neighborhood where several similar homes are for sale, the one that’s move-in ready and well-presented will win the offers. Consider this an invitation to declutter, add a fresh coat of paint, or improve curb appeal. Those little touches matter more when shoppers have alternatives.

• Be Open to Negotiation: In 2025, Houston sellers are finding that they may need to negotiate a bit more than they did at the height of the boom. You might encounter offers below your asking price, or requests for closing cost assistance, repair credits, etc. This is normal in a balanced market. Remember, prices overall are flat, and buyers know it. If an offer is reasonable, work with it – maybe you can meet the buyer halfway. Flexibility can make the difference between closing a deal now or waiting uncertainly for that “perfect” offer that might not materialize. The flip side is that you’re likely also buying your next home in this same market, where you’ll benefit from more balanced conditions on that end.

• Leverage the Still-Strong Demand: Don’t get the impression that nothing is selling – actually demand is quite healthy (Houston’s strong economy and population growth see to that). There are plenty of first-time buyers and new residents looking for homes. Use that to your advantage by highlighting what makes your home special. If you hit the right price and presentation, you can still attract multiple interested parties. It’s just a more level playing field now. Partnering with a knowledgeable agent who understands current trends will help you navigate this new normal and still achieve a great outcome.

• Because buyers have more options to choose from, it's more important than ever to position your home as the obvious choice so it sells as quickly as possible. If you're thinking of selling this year, you can take steps now to make sure your house stands out from the pack when you're ready to sell. Download a FREE copy of my guide, The Top 10 Mistakes Home Sellers In Houston Make - And How To Avoid Them. You can also schedule a free consultation here.

What These Trends Mean for Buyers (Especially First-Timers)

If you’re a home buyer or aspiring first-time buyer in Houston, 2025 is offering some of the most encouraging conditions we’ve seen in a while. Here’s how to take advantage and what to keep in mind:

• More Homes to Choose From: Simply put, you’ll have a much bigger selection of homes. With inventory up over 30% from last year, you’re less likely to face the heartbreak of falling in love with a house only to find it’s the only one like it. New listings are hitting the market every day. This means you can be a bit choosier – you might find a home that checks more of your wish-list boxes because you’re not settling for whatever’s available. Take the time to compare properties, neighborhoods, and prices. You may even get a second chance on a home that didn’t get snapped up immediately.

• Less Bidding War Pressure: The days of intense bidding wars and paying way over asking price are fading. With the market leveling out, buyers have more negotiating power. It’s not universal – a turnkey house in a hot neighborhood can still attract multiple offers – but in general you won’t always need to offer $20K above list price or waive contingencies just to compete. In many cases, you can make an offer at or even slightly below asking and have a fair shot, especially if the home has been on the market a few weeks. Use this breathing room to your advantage: you might negotiate for the seller to cover some closing costs, or request repairs after an inspection without as much fear of them walking away. It’s a refreshing change from the height of the seller’s market.

• Stable Prices (Budgeting is Easier): With home prices flattening out this year, you don’t have to worry that prices will jump another 10% if you don’t buy right now. Last year, many first-timers felt panic to buy before getting “priced out”; that urgency is easing. You can budget with a bit more confidence when the median price is roughly the same as a year ago. That said, keep an eye on those luxury sales skewing some averages – the typical starter home in Houston isn’t suddenly more expensive, and in some cases sellers might even price slightly under last year to attract buyers. All told, affordability is still a challenge due to higher mortgage rates, but at least home prices aren’t sprinting upward at the same time.

• Mortgage Rate Strategies: Speaking of rates – yes, 6.8% interest is no one’s idea of a steal. Higher rates mean higher monthly payments, which might limit your price range compared to a few years back. But there are ways to navigate this. First, shop around with lenders; even a slightly lower rate or a first-time buyer program can save you money. Second, consider that rates are predicted to remain relatively stable or possibly dip in the future – nothing guaranteed, but if they do drop, you can potentially refinance later to bring your payment down. The saying “marry the house, date the rate” applies: you can commit to a home you love now and look to refinance the loan if opportunities arise. In the meantime, some sellers and builders are offering incentives like rate buydowns or paying points to help buyers – it never hurts to ask or negotiate for relief on financing costs in your offer.

• Do Your Homework, But Don’t Fear the Market: A balanced market means you have time to do your due diligence – get that inspection, review the HOA bylaws, compare sales – without feeling like you’ll lose the house by taking a day to decide. Use that time wisely. Work closely with your realtor to understand local comps (some pockets of Houston might still be hotter than others). However, don’t get too complacent: quality homes priced right still sell. If a house truly fits your needs and budget, you should move on it in a timely manner. The good news is you can move on your terms more so than in recent years. Many sellers are now more willing to work with first-time buyers (who might need closing cost help or a slightly longer closing period) because there aren’t ten other offers lined up. So ask questions, take your time – this is a big decision – but feel empowered that 2025’s market gives you a fair shot at achieving homeownership.

• Most importantly, remember you're not alone. As your Hosuton Realtor®, I'm here to answer any questions you may have and guide you through the process of getting that new home! You can schedule a free consultation here.

Final Thoughts

Houston’s real estate landscape YTD 2025 is all about finding balance. After a wild ride that heavily favored sellers, the market is normalizing in a way that can benefit both sides. Sellers can still capitalize on strong buyer demand and solid prices, but must adapt to more competition and savvy buyers. Buyers finally see a light at the end of the tunnel with more choices and negotiating room, even though high mortgage rates keep things challenging.

In this environment, staying informed is key. The data shows where the trends are headed – toward a market that’s friendlier to buyers than we’ve seen in years, yet still healthy and resilient for sellers. Whether you’re planning to list your longtime home or purchase your very first house, understanding these dynamics will help you make the best decision. And of course, if you need personalized guidance, a local Houston agent (👋 hello!) is always ready to help you navigate the particulars. Here’s to making the most of this evolving market – happy buying or selling, Houston!