First Quarter: Houston Home Sales on Pace with 2024

HOUSTON – (Realty News Report) – Houston home sales ended the first quarter with a very small gain as lower interest rates and a bigger supply of homes on the market pulled in buyers in March.

Q1 2025 Sales Virtually Unchanged vs Q1 2024

In the first three months of the year, 18,519 single-family homes were sold in the Houston area, up 0.2% from the 18,476 homes sold in the first quarter of 2024, according to a monthly sales report by the Houston Association of Realtors. March accounted for 7,429 sales, up 2.6% over March 2024 and the highest volume since July 2024.

It was a reversal from February’s slowdown, when year-over-year sales fell 3.1% to 6,042 transactions, according to HAR.

“Lower mortgage rates are giving Houston homebuyers a sense of optimism, but many are still proceeding with caution,” said HAR Chair Shae Cottar with LPT Realty. “It’s important to acknowledge that current economic headwinds, including the impact of new tariffs, are putting downward pressure on interest rates. These lower rates, coupled with growing inventory and moderating home prices, create an opportunity for both buyers and sellers.”

Houston’s median home price rose by 1.5% over the year to $335,000 in March, while the average was up 3.7% to $427,221. Sales of luxury homes — those priced at $1 million or more — represented the strongest segment, with the number of transactions rising by nearly 27% year-over-year.

Mortgage rates have leveled out with the average rate for a 30-year fixed-rate mortgage falling to 6.64% last week, down from 6.82% a year ago, according to Freddie Mac

The market continued to shift toward buyers with the supply of homes on the market in Houston reaching a 12-year high of 4.6 months of inventory. Nationally, by comparison, the inventory stood at 3.5 months, according to the National Association of Realtors.

Houston’s active single-family home listings totaled 32,866 in March, up by 8,778 or 36.4% over the prior year, according to HAR. It was the highest point since June 2011 and more than triple the number of active listings in March 2022.

Mark Your Calendar

HOUSTON – CommGate announced its 2025 Development Showcase will be held May 15, 4:30 to 7:00 p.m. at the Houston Country Club. The event will provide Houston’s commercial brokerage community an overview of significant Houston area commercial real estate developments. Discounted pricing is available for CommGate, CCIM, SIOR, and HAR members.