Monthly Update: Home Sales

The Partnership sends updates for the most important economic indicators each month. If you would like to opt-in to receive these updates, please click here.

Brokers closed on 52,007 single-family homes year-to-date through July ‘25, according to the Houston Association of Realtors (HAR). This represents a 3.7 percent increase compared to the same period in ’24. Mortgage rates have dropped to their lowest levels since October while inventories have grown and prices may be starting to ease. Together these indicators suggest a market that is growing more buyer friendly.

Mortgage rates have continued to drop since the end of May, with the average 30-year fixed rate mortgage declining from 6.9 percent in the final week of May to 6.6 percent in the second week of August. This represents the lowest average level for mortgages since last October when they stood at 6.5 percent. The drop was driven by lower treasury yields and steady headline inflation in July along with growing odds that the Federal Reserve will cut interest rates in September.

The number of single-family homes listed for sale through HAR hit 40,112 in July ’25, a 38.2 percent increase over July ’24. This represents the highest number of listings on record and the first time the number has surpassed 40,000. 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. That is up from 4.2 months of inventory in July ’24.

The price of homes sold through HAR’s Multiple Listing Service (MLS) shows signs of easing. The 12-month average price for the median single-family home ticked up from roughly $334,000 in July ’24 to $335,000 in July ’25. However, the average price has been trending downward from roughly $336,000 in January.

Sales of townhomes and condos remain steady year-over-year while prices have dropped 1.1 percent and inventories are up 46.0 percent. Highrise units saw flat sales, growing prices, and an 14.3 percent increase in active listings.

Prepared by Greater Houston Partnership Research

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