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Brokers closed on 66,930 single-family homes year-to-date through September ’26, according to the Houston Association of Realtors (HAR). That is essentially flat, down approximately 0.8 percent from the same period in ’25. Sales for the month of September declined by 423 units amid a sharp rise in mortgage rates, which topped seven percent for the first time in nearly two years.

Single-family home prices tracked through HAR’s Multiple Listing Service (MLS) have softened modestly and remain near the levels seen in recent years. The 12-month average sales price for the median home sold through the MLS stood at roughly $331,000 in September ’26. That is down about one percent from its level a year earlier. This modest change has not meaningfully reversed the sharp gains recorded during the pandemic and its recovery.

But, mortgage rates have risen sharply over the course of the month, as renewed concerns about inflation, federal borrowing, and monetary policy pushed Treasury yields higher. The average 30-year fixed mortgage rate rose from 6.7 percent at the beginning of September to hit 7.0 by the end of the month for the first time since January ’25. Higher borrowing costs continue to weigh on housing affordability despite the modest decline in median single-family home prices.

Active listings of single-family homes on the market remained essentially flat in September, leveling off near a record high at roughly 41,300. This is in the context of an upward trend in inventory seen over the past several years and providing buyers with more options, while single-family home sales have declined 5.7 percent and median prices remained essentially unchanged from a year earlier. If single-family homes were to continue selling at the current rate, it would take 5.5 months to sell the available inventory of homes on the market.

Supply continued to outpace sales activity in the market for townhomes and condos, where listings rose 6.9 percent from a year earlier, units sold declined 21.0 percent, and median prices fell 9.1 percent. Together, these changes suggest a market where demand has softened.

High-rises also experienced a sharp decline in sales, falling 48.3 percent from a year earlier, while listings edged down 2.3 percent. However, the segment’s relatively small size makes monthly comparisons particularly volatile.

Prepared by Greater Houston Partnership Research

Colin Baker
Director of Economic Research
Greater Houston Partnership
bakerc@houston.org

Tia Hufstetler
Research Analyst
Greater Houston Partnership
thufstetler@houston.org