Houston Real Estate Market Update

The Houston real estate market as of October 2025 is marked by high inventory, steady pricing, and balanced conditions that favor both buyers and sellers. With inventories at multi-year highs and prices showing only modest movement, Houston is experiencing a competitive yet stable environment across most neighborhoods.

💰 Home Prices in Houston

• Median Home Price: About $335,000 as of late September 2025. Prices remain flat month-over-month but reflect modest year-over-year gains.
  
  
• Average Sale Price: $355,000 in August 2025, up 7.6% from last year, with homes selling in an average of 47 days.
  
  
• Average Home Value (Zillow): $263,880, a 3.1% decline year-over-year, signaling normalization after the rapid surges of 2021–2023.
  
  

Overall, pricing has stabilized, offering buyers predictability and sellers a fair playing field.

📈 Inventory and Sales Activity

• Months of Inventory: 8.2 in August 2025, up from 5.4 a year ago, marking the highest supply in over 8 years.
  
  
• Active Listings: Roughly 35,151 homes in September 2025, a 30.4% increase year-over-year.
  
  
• Sales Volume: Up 4.6% year-to-date through August, with 60,065 single-family homes closed.
  
  
• Luxury Segment: Outperforming, driven by cash buyers and those less sensitive to mortgage rates.
  
  

Even though inventory is elevated, homes in desirable neighborhoods, top school zones, or prime locations are still moving quickly and often competitively.

⚖️ Market Dynamics

• Balanced Market: Buyers enjoy more options and negotiating leverage, while sellers in the right price ranges still attract demand.
  
  
• Lock-In Effect: Many homeowners with low mortgage rates are staying put, limiting new listings, while new construction and slower buyer activity continue to build supply.
  
  
• Neighborhood Variations: Affluent areas and subdivisions near Houston’s top-ranked schools remain hot markets, with quick sales and strong pricing.
  
  

📉 Mortgage Rates and Affordability

• Mortgage Rates: Recently between 6.5–6.7% for a 30-year loan. Slightly lower than earlier in 2025, but still keeping affordability tight for some buyers.
  
  
• Affordability Impact: Sellers must price competitively as higher borrowing costs slow entry-level demand. Buyers, however, have more breathing room with higher inventory.
  
  

🔮 Outlook for the Houston Real Estate Market

Experts project that Houston will finish 2025 as one of the strongest-performing major housing markets in the country, supported by:

• Robust job growth
  
  
• Continued population increases
  
  
• A balanced supply-demand picture
  
  

Prices are expected to remain flat or modestly negative through the end of the year, giving buyers an opportunity to enter the market. Sellers who want to win in this climate must focus on strategic pricing, curb appeal, and professional marketing.

✅ Key Takeaways

• Buyers: More choices, longer days on market, and increased leverage make this a smart time to shop in Houston.
  
  
• Sellers: Homes will sell, but strategy matters—pricing competitively and showcasing your property well are critical.
  
  
• Investors: Elevated inventory and moderating prices create strong buying opportunities, especially in Houston’s growing suburban markets.
  
  

 Ready to Buy or Sell in Houston?

The Houston real estate market in October 2025 offers opportunities for both buyers and sellers—but success comes down to having the right strategy and the right local expert.

At The Freund Group at FIV Realty, we combine decades of Houston market experience with top-tier marketing and negotiation skills to help our clients succeed in any market conditions.

👉 Thinking about buying or selling in Houston? Let’s talk strategy today.
📲 Contact The Freund Group now for your personalized market consultation.

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