This fall brought more signs of stability to the Houston region’s housing market, as October marked the sixth consecutive month of year-over-year home sales growth. With some relief in prices and mortgage rates, buyers are getting a bit more bargaining power going into the final months of the year.

According to the Houston Association of Realtors’ October 2025 Housing Market Update, single-family home sales rose 3.2 percent year-over-year. A total of 7,419 homes were sold compared to 7,187 last year. 

While average home prices remained statistically flat at $423,955, the median price declined for the seventh month in a row to $330,000. This trend indicates that the market is gradually shifting toward a more balanced level after years of rapid price growth.

Housing supply remained steady month-to-month, but increased year-over-year to 5.2 months, up from 4.4 months last October. 

The average list-to-sale price ratio dipped to 92.6%, the lowest recorded level since HAR began tracking the metric in 2001. 

“Despite the government shutdown, which temporarily ceased purchases of flood insurance from the National Flood Insurance Program, and some uncertainty in the economy, homebuying interest in Houston remains solid,” said HAR Chair Shae Cottar with LPT Realty. “Prices have softened, inventory is up, and mortgage rates are coming down – all of which are giving buyers more room to breathe. The frenzied pace of recent years has eased, and the market has leveled out, ultimately benefiting both buyers and sellers.”

Housing Market Overview

In October, sales of all property types across the Houston area increased 1.6% compared to last year, with 8,768 properties sold. Multi-family properties saw the largest year-over-year sales growth, with transactions 32.8% above last October’s volume. Total dollar volume also rose 1.9% to more than $3.5 billion for the month.

Houston single-family home sales now exceed pre-pandemic levels, up 3.2% in October 2019 compared to October 2025 and up 2.6% year-to-date. In contrast, the U.S. housing market struggles to return to normal with home sales down 21.6% (September 2025 compared to September 2019) and off 22.8% year-to-date 2025 versus 2019. 

“Unlike the U.S. housing market, which lags pre-pandemic home sales volumes, Houston has returned to a normal market that is growing,” said HAR Chief Economist Dr. Ted C. Jones.

Active listings of all property types were 23% higher than last year with 59,903 available properties on the market. 

Single-Family Homes Update

As prices and mortgage rates settle, more home buyers are stepping back into the market. A total of 7,419 single-family homes sold in October, up from 7,187 a year ago. 

The median home price declined 1.5% to $330,000, while the average price was essentially flat at $423,955. The average price per square foot was $175, slightly lower than $177 a year ago.

Nationwide, 30-year conventional mortgage rates dipped from an average 6.43% in October 2024 to 6.25% in October 2025, per Freddie Mac’s weekly Primary Mortgage Market Survey (PMMS).  When combined with the slight reduction in median price, the typical Houston monthly principal and interest payment for a single-family purchase assuming a 20% down payment declined from $1,681.27 to $1,626.87 – a $55.09 savings per month or $661 per year. 

Single-family pending home sales in October were up a strong 13.1% year-over-year.  

“These newly signed contracts typically become closings in the next 30 to 60 days indicating continued growth in the Houston housing market,” said Jones.

There were 38,316 active listings of single-family homes in October, a 25.7% increase from last year and about the same level as September. Supply also expanded to 5.2 months of inventory, while the national average sits at 4.6 months, as reported by the National Association of Realtors. Homes averaged 59 days on the market compared to 52 last year.

Broken out by housing segments, single-family home sales performed as follows:

  • $1 – $99,999: increased 2.2% (95 transactions)
  • $100,000 – $149,999: increased 27.% (193 transactions)
  • $150,000 – $249,999: increased 9.1% (1,478 transactions)
  • $250,000 – $499,999: unchanged (4,047 transactions)
  • $500,000 – $999,999: increased 3.1% (1,277 transactions)
  • $1M and above: increased 10.8% (329 transactions)

HAR also breaks out sales figures for existing single-family homes. In October, sales edged up by 1.2% year-over-year, with 5,103 closings compared to 5,044 a year ago. The average sales price increased 1.5% to $434,555, while the median price stayed at $330,000.

Townhome/Condominium Update

Demand for townhomes and condominiums slowed in October. Sales were 9.3% below last year’s level, with a total of 438 units sold compared to 483 in 2024. The average price fell 10% to $251,090, and the median price declined 11.9% to $205,000 — the lowest median price since January 2023, when it was $195,500.

Inventory also expanded, with active listings increasing 29.8% to 3,450 units, pushing months of inventory from 5.8 a year ago to 8.3.

Houston Real Estate Highlights in October

  • Single-family home sales increased 3.2% year-over-year.
  • Days on Market (DOM) for single-family homes went from 52 to 59 days.
  • The single-family median price declined 1.5% to $330,000.
  • The single-family average price was statistically flat at $423,955.
  • Single-family home months of inventory expanded to a 5.2-months supply, up from 4.4 months last October.
  • Townhome and condominium sales were down 9.3% with 438 units sold. The median price declined 11.9% to $205,000, and the average price was down 10.0% to $251,090.
  • Total property sales increased 1.6% with 8,768 units sold.
  • Total dollar volume rose 1.9% to $3.5 billion.

Editor’s note: The HAR report, lightly edited, is used by permission. Find the full report at har.com/content/department/mls.