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Brokers closed on 59,843 single-family homes year-to-date through August ’26, according to the Houston Association of Realtors (HAR). That is essentially flat, down 0.2 percent from the same period in ’25. Sales declined by 922 units from a year earlier in August, reversing the year-over-year gains seen earlier in the summer. Overall, the market remains relatively steady, with rising inventory giving buyers more options and modestly softer prices providing some relief from elevated borrowing costs.

Single-family home prices tracked through HAR’s Multiple Listing Service (MLS) have softened modestly and remain near at lowest level in since January ’24. Th 12-month average sales price for the median home sold through the MLS stood at roughly $331,000 in August ’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.

Even with home prices softening, borrowing costs remain a hurdle for some buyers. Mortgage rates have risen from their lows earlier this year, reversing almost all of the decline seen at the start of ’26. The average 30-year fixed mortgage rate fell to roughly 6.0 percent in February before climbing to around 6.8 percent as of mid-September. The recent rise in rates continues to weigh on housing affordability despite modestly softer home prices.

Active listings of single-family homes on the market rose through the summer, and remain near a record high at roughly 41,000 in August. This is broadly inline with upward trend in inventory seen over the past several years and provides buyers with more options, while increasing competition among sellers and limiting their ability to raise prices. If single-family homes were to continue selling at the current rate, it would take 5.3 months to sell the available inventory of homes on the market.

Supply is increasing relative to demand in the market for townhomes and condos, where listings are up while sales are flat and prices have declined. Together this suggests that buyers have more options and negotiating power in transactions.

High rises on the other hand are a smaller, more selective market. Sales are up, but listings are down, suggesting more units are selling despite fewer properties being available. With only 52 sales, the lower median price likely reflects the mix of units sold rather than broad market weakness.

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