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Single-family home sales in metro Houston picked up modestly in ’25, according to the Houston Association of Realtors (HAR). Brokers closed 88,634 homes during the year, up 3.8 percent from ’24. Sales were back near the pre-pandemic pace of ’19. They were higher than ’23 and ’24, but still below the unusually strong ’20–’22 period as the market continued to normalize. The supply of homes for sale climbed over the year, but inventories eased in the second half of ’25 as lower mortgage rates sparked more purchases.

Active listings of single-family homes surged to a record 39,490 in July, before retreating to 36,574 by year-end. If single-family homes were to continue selling at the current rate, it would take 4.5 months to sell the available inventory of homes on the market. That’s up from 4.0 months of inventory in December ’24, but down from July’s 5.4.

Mortgage rates steadily declined through most of ’25, with the average 30-year fixed rate sliding from about 7.0 percent in late January to roughly 6.2 percent by year-end. That drop pushed borrowing costs to their lowest level in more than three years. The move tracked the Federal Reserve’s pivot toward easier monetary policy, which kicked off with a quarter-point rate cut in September and was followed by additional quarter-point cuts in October and December.

Prices for single-family homes sold through HAR’s MLS also eased modestly. The 12-month average price for the median home slipped from about $336,000 in January to roughly $333,000 by December. That gradual cooling, combined with lower borrowing costs (especially in the second half of the year) helped draw buyers back in and lift sales at the margin.

Looking at December year-over-year, the market for townhomes and condos shifted further toward buyers as rising listings lifted inventories and pushed the median price down 4.4 percent even as sales ticked up. Highrise demand softened, with sales down 19.4 percent and inventory up to 8.5 months, while the higher median price likely reflects a greater share of high-end closings in a thinner market.

Prepared by Greater Houston Partnership Research

Colin Baker
Manager of Economic Research
Greater Houston Partnership
[email protected]