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 18,519 single-family homes year-to-date through March ‘25, according to the Houston Association of Realtors (HAR). This represents a modest 0.2 percent increase over the same period in ’24, with falling mortgage rates in March making buyers more optimistic and homes more affordable. This trend may be short-lived as mortgage rates began ticking up in April and volatile financial markets make buyers wary about purchasing a home.

The price of homes sold through the HAR’s Multiple Listing Service (MLS) has continued to narrowly increase. The 12-month average price for the median single-family home rose from roughly $332,000 in March ’24 to $336,000 in March ’25. This represents a 1.3 percent price increase, still far below the increases of 10 percent or more experienced in the years that immediately followed the COVID-19 pandemic.

Mortgage rates increased in the final weeks of April, with the average rate on a 30-year fixed mortgage rising from 6.6 percent on April 10 to 6.8 percent on April 24. The uptick reverses the trend of falling rates seen over the previous three months as unexpectedly high yields on treasury bonds and growing worries about inflation put upward pressure on mortgages.

The number of single-family homes listed for sale through HAR stood at 32,866 in March ‘25, a 36.4 percent increase over March ‘24, and a 70.0 percent increase over March ’23. If single-family homes were to continue selling at the current rate, it would take 4.6 months to sell the available inventory of homes on the market. That is up from 3.4 months of inventory in March ’24, indicating a market where buyers have a stronger position.

Demand for townhomes and condos has weakened, with sales falling by 21.9 percent and listings increasing by 45.4 percent year-over-year. Sales of highrise units have also dropped, but median prices in that sector increased to over $500,000, indicating that buyers are shifting to more luxurious units.

Prepared by Greater Houston Partnership Research

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

Clara Richardson
Research Analyst
Greater Houston Partnership
crichardson@houston.org